The Israeli brand design platform Tailor Brands announced on Thursday that it raised $50 million in a Series C round led by strategic investor GoDaddy Inc. The investment is the largest GoDaddy has made in a private company, and it is also the first made in Israel, according to the joint announcement.
Israeli investment firm OurCrowd also joined the round, as did existing investors Pitango Growth, Mangrove Capital Partners, Armat Group, Disruptive VC, and serial entrepreneur Richard Rosenblatt.
Founded in 2015 by Yali Saar, Tom Lahat, and Nadav Shatz, Tailor Brands has sought to streamline brand design and business setup to help entrepreneurs launch and grow their ventures. Tailor Brands’ platform replaces the entire range of fragmented solutions needed to launch a business with its platform that guides businesses through the process of designing a logo, building a website, creating social media content, and even printing merchandise.
With the rapid growth of small businesses launching during the pandemic in 2020, the company has expanded from an AI-powered logo maker to a software platform that enables freelancers and small businesses to launch and improve their branding. The company currently has over 700,000 new businesses embarking their journeys on the platform monthly, and triple-digit annual growth, according to the announcement.
“Once we started to really track the explosive growth of small businesses as a result of Covid, we knew that Tailor Brands could provide real value for these business owners in a fun and engaging way by removing many of the hurdles that come with establishing and marketing a new business, including consolidating all of the needed services in one place, enabling business owners to free up valuable time to focus on other important aspects of growing their companies,” said Saar, who serves as CEO.
The company said it will allocate the funds to accelerate its service for small businesses with a broader range of capabilities offered on its platform by increasing its investment in R&D and expanding marketing efforts.
Andrew Morbitzer, Vice President, Corporate Development at GoDaddy said that the investment in Tailor Brands coincides with their vision to “empower everyday entrepreneurs around the world by providing all of the help and tools to succeed online.”
“Their platform truly helps entrepreneurs start their business quickly and easily with AI-powered logo design and branding services,” he added.
Tailor Brands is based in New York and Tel Aviv.