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Automattic raises $300M at $3B valuation from Salesforce Ventures

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Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#81
Around three years back, if you were to ask me to build a website, I would straight up choose WordPress. Not because it was the best at it, but because it was the easiest and the cheapest way to do it.

Now, I'm not so sure.

Blogging itself is in decline and the kind of blogging experience WordPress offers is, frankly, too bloated for the average blogger

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#82

> “The roadmap is the same. I just think we might be able to do it in five years instead of ten,” Mullenweg said. I tried to hunt for why the investment was taken and this is all the article mentions. It just doesn’t make sense to me. I’m guessing that competition is heating up and they need marketing fuel to keep people on the platform while they transform it from a duct taped blogging tool to something more flexibl…

Possible reaction to the recent Webflow Series A ($72M) maybe?

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#83
post #71

Hopefully this means Simplenote will continue to be supported!

I think Matt mentioned it on the Vergecast recently, so it's not a secret – we have a team of top folks working on Simplenote and are continuing to invest in it.

Source: I'm on the mobile team at Automattic and just spent a week hanging out with the people working on it :)

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#85
I am surprised nobody here mentioned wooCommerce and Gutenberg. Prior to Gutenberg, I was sold on Elementor but now with the upgrade have been using Gutenberg quite often and love it.

I bet the funding is going into these two fronts especially wooCommerce (the top ecommerce platform on wordpress and also owned by Automattic.

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#86
post #35
post #24

DHH isn't too thrilled about this. > “We want every website, whether it’s e-commerce or anything to be powered by WordPress” is a nasty, monopolistic goal. Listening to Matt muse about 85% marketshare dreams is a real downer. But $300m is a down payment on monopoly dreams. full thread: https://twitter.com/dhh/status/1174695189090308096

Guess he must hate Acquia is well? Not sure why DHH always has to be such a... downer.

because he has witnessed dozens of companies overtake his own in achieving mega-valuations and success without following his cargo cult advice that was born from a halo effect

his entire m.o today is to beat down anything that doesn't fit the poor and loose thesis he built a brand on -- everything from "surveillance capitalism" to "open source monopoly bad"

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#87
post #8

Does anyone else see a misalignment between the $3B valuation and the huge impact Wordpress has had on the internet? 1/3 of all websites are powered by Wordpress, yet they seem to be valued low compared to other tech companies.

Pretty sure the vast majority of those WordPress sites bring them no revenue.

All these sites get ads that should make a ton of revenues for WordPress.

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#88

> “The roadmap is the same. I just think we might be able to do it in five years instead of ten,” Mullenweg said. I tried to hunt for why the investment was taken and this is all the article mentions. It just doesn’t make sense to me. I’m guessing that competition is heating up and they need marketing fuel to keep people on the platform while they transform it from a duct taped blogging tool to something more flexibl…

Competition in the enterprise market is also heating up. Adobe Experience Manager can be mentioned as an inferior product tech stack wise, but strong marketing including targeting the C level with PowerPoint presentations let’s it win customers. Feature wise Wordpress needs to do something at the analytics level. It does not make sense to host everything via Wordpress however everything data related is done via third…

Adobe must have the best salespeople ever, for what people pay for Experience Manager vs what it actually does.

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#89
post #16

Earlier quoted context omitted.

Where it's possible, I'll always invest in product and engineering over marketing (specifically external ad spend). The Tumblr acquisition is a good example of that, we actually scaled back WP.com marketing in anticipation of that to give more room to bring on Tumblr's entire 200ish-person team. 90%+ of our growth is organic, and that percentage is going up.

Translation: We're actually doing well, but you only hear about Wix and others because they spend more money on advertising than we do.

I wish I could stop having Wix ads on youtube, I have seen it like 500 times already. While Squarespace is on all the information channel as sponsors.

I have yet to see a single ads on Wordpress.

Not necessarily a bad thing, but now whenever I think of doing a simple website my brains clicks on Wix or SqaureSpace instead of thinking about Wordpress.com

Re: Automattic raises $300M at $3B valuation from Salesforce Ventures

#90
post #73
post #24

DHH isn't too thrilled about this. > “We want every website, whether it’s e-commerce or anything to be powered by WordPress” is a nasty, monopolistic goal. Listening to Matt muse about 85% marketshare dreams is a real downer. But $300m is a down payment on monopoly dreams. full thread: https://twitter.com/dhh/status/1174695189090308096

As far as I know, DHH isn't a big fan of investments in general.

He hate the word Unicorn, and dislike Start-up with VCs and Hyper growth, along with the mentality you need to be in Silicon Valley and get hundreds million in funding, all while working 8-8 everyday to succeed.

In other words, he is very much Anti - Silicon Valley.

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