3/10/10

ShopIgniter lands $3 million in venture backing from Madrona Venture Group, plus a new CEO Matt Compton

Katie Evans , Managing Editor, International Research

Portland,OR based ecommerce software company is leading the way in helping retailers and brands merchandise and sell on the social web. New CEO with background at Yahoo wants to solve some big problems for the ecommerce industry.

Portland, OR March 4, 2010 -- ShopIgniter, Inc., a multi-channel ecommerce software provider, today announced that it has secured $3M in venture capital funding. The Series A round was led by Madrona Venture Group.

The ShopIgniter platform tightly integrates social media into core ecommerce functionality to increase a seller’s online sales by as much as 30%. The platform enables retailers, wholesalers and product brands to merchandise products through FaceBook, find customers through Twitter, and manage all the functionality of their online store through an intuitive, easy-to-use interface.

Founded in 2008, the company provides an integrated ecommerce platform unifying physical retail stores, branded websites and the social web. “We are investing in ShopIgniter because its flexible web services based platform significantly improves the ability of retailers to better manage and present their web store to customers,” said Tom Alberg, a Managing Director at Madrona Ventures. “The founders have deep domain expertise and the company has built a platform that incorporates new opportunities for retailers to serve and reach customers through social networks and other innovative features.” Alberg is a founding partner of Madrona and serves on the board of Amazon. He will join the ShopIgniter board.

The company was founded by Alan Wizemann, Dan Warner and Jason Glover. “The product concept was to acknowledge a seller’s existing systems for selling and inventory and extend that online with a customizable, high-performance ecommerce platform. What we discovered was that by weaving in configurable social features, our customers could create online stores that self-generated traffic,” said Wizemann.

The ShopIgniter solution is a fully extensible ecommerce platform built on CodeIgniter, a web application framework with a community of over 115,000 developers. The platform serves sellers of all sizes and was built with system integration and front-end customization in mind. “Retailers, product brands and their interactive agencies need to be able to design custom store fronts but do not want the maintenance hassle or expense of hosting and building high-performance ecommerce functionality. We provide that flexibility and still deliver all the benefits of a SaaS solution,” said CTO and co-founder, Dan Warner. “We also encourage developers to leverage the ShopIgniter module architecture to extend functionality, build integration points and continue to innovate for their ecommerce clients.”

This round of funding will enable ShopIgniter to accelerate sales and marketing efforts as well as further extend commerce functionality into both social and physical retail environments. Matt Compton, former Madrona Venture Partner, has joined the company as CEO. During his tenure at Madrona, Compton evaluated over 100 early stage companies in Oregon.

“The ecommerce space is big, growing and ripe for disruption. The incumbent software platforms that power the $170 billion ecommerce market are often antiquated or even homegrown. ShopIgniter is revolutionizing ecommerce software by applying cloud-based delivery, third party developer extensibility and social commerce to a beautifully designed and extremely innovative set of features,” said Compton. “When presented with the opportunity to join the company and continue to work with Madrona and Tom Alberg, I asked, where do I sign up?” Prior to Madrona, Compton was VP of Media at Yahoo where he also headed up sales and marketing for the hosting and ecommerce business services.

The ShopIgniter platform is now available to new customers going live this Spring. Retailers, wholesalers, product brands and site developers can request a demo at http://www.shopigniter.com.

Topics:

Hypertext, Internet, Webstore, Yahoo!

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