US-based venture capital firm Technology Crossover Ventures (TCV) has invested $30 million in SiteMinder, an Australia-based company specializing in hotel software development. SiteMinder’s software enables hotels to maximize their inventory monetization through direct connections to online platforms.
The investment was announced through a recent media release, placing SiteMinder alongside other TCV investments such as Facebook, Expedia, Netflix, ExactTarget, and HomeAway. The partnership between TCV and SiteMinder was finalized in late December 2013, following a highly successful year for SiteMinder that saw the establishment of its US operations and a remarkable revenue growth of over 70%, as reported by the company.
Founded in Australia in 2006, SiteMinder is renowned as a leader in the online hotel distribution industry. Its flagship product, the Channel Manager, enables hotels to seamlessly connect with leading booking websites worldwide through a centralized cloud application. Additionally, the Booking Button platform empowers hotels to accept direct bookings through their own websites. SiteMinder also offers a range of other innovative products tailored to the hotel industry. Presently, the company operates offices in Bangkok, Cape Town, Dallas, London, and Sydney, and boasts a customer base of over 11,000 across more than 105 countries.
David Yuan, TCV General Partner, expressed admiration for SiteMinder’s remarkable growth and lauded the company’s culture of innovation. He emphasized TCV’s excitement about the partnership and its commitment to supporting SiteMinder’s global expansion. David Yuan also serves on the boards of AppNexus, Merkle, and Sitecore.
The funding received will strengthen SiteMinder’s position as a leading provider of hotel distribution technology on a global scale. The investment will facilitate the company’s growth and enable it to meet the surging demand for its products in the Americas, while further solidifying its presence in the European and Asian markets.
Mike Ford, CEO of SiteMinder, highlighted the increasing importance of online booking for hotels and the necessity of SiteMinder’s technology in reaching a global audience and maintaining competitiveness. Ford expressed confidence in TCV as an ideal partner, leveraging its extensive experience and technological expertise to help SiteMinder rapidly gain market share.
A portion of the funding will be allocated to enhancing SiteMinder’s existing products, delivering greater value to its extensive customer base of over 11,000 hotels. Additionally, SiteMinder aims to develop new products that cater to the growing need for hotels to expand their online sales capabilities. In 2013, SiteMinder’s technology facilitated over $5 billion in booking revenue for its hotel clients, almost double the previous year’s figure.
Erik Blachford, TCV Venture Partner and former CEO of Expedia, expressed enthusiasm for SiteMinder’s disruptive and refreshing approach in the travel technology industry. Blachford, an individual investor in online travel companies and a board member at various prominent firms, is eager to collaborate with SiteMinder to further its exceptional growth trajectory. Both David Yuan and Erik Blachford will join the SiteMinder Board.
This investment news marks one of the largest venture capital injections into an Australian technology firm since Atlassian, a local company, secured $60 million in investment from US VC firm Accel Partners in July 2010. SiteMinder is currently pursuing a listing on a US stock exchange, showcasing its ambition for future growth and market expansion.
