Boulder-based Kapost raises $5.6 million, plans to hire 40 people in 18 months

TechStars alumnus Kapost settled in a pretty nice niche when it pivoted from offering a software to assist publishers in managing content and workflow to offering a content marketing platform for large brands that have gravitated toward more online publishing.

Not even five years after its inception, the Boulder-based Kapost counted more than 100 clients — primarily firms with $50 million-plus in revenue — raised nearly $3 million in funding, doubled its annual revenue and turned a profit.

As a means to continue that momentum, Kapost landed additional growth capital.

The company on Thursday announced it raised $5.6 million from new investors Lead Edge Capital and Floodgate with participation from existing investor High Country Venture.

The money will allow Kapost to bolster its product offerings and ramp up its staffing. The 20-employee firm plans to hire 15 more people by the end of the year and another 25 next year, said Mike Lewis, Kapost’s co-founder and president.

“This is a popular space and we’re already the industry leader in this space,” Lewis said. “As this space is heating up, we just want to further grow our position as the leader.”

Within the past year, Kapost has increased its client roster by 50 percent and serves firms such as AT&T, General Mills, Oracle, Lenovo and Intel.

Kapost aims to assist firms such as these that are increasingly developing more online content — from blog posts and white papers to e-books and YouTube videos — and have bulked up their in-house marketing departments accordingly. Managing that workflow could be difficult, Lewis said.

“As you scale to five, 10, 20 people, it gets unwieldy,” he said.

Kapost’s software consists of a dashboard for users to view activity and manage workflow across various publishing and social media avenues and features such as a calendar, analytics and style sheets.

Kapost’s platform — which can be test-driven on Kapost’s website — is supplemented by a search function to dig deep into the slew of content being developed.

About Alicia Wallace

Alicia Wallace is the business reporter for the Boulder Daily Camera.
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2 Responses to Boulder-based Kapost raises $5.6 million, plans to hire 40 people in 18 months

  1. barkerres1 says:

    Not an expert on business. Five million sounds like a lot, but you start hiring a lot of people, benefits, vacation time, and related overhead, obligations to your venture capital sources, in no time you wonder where "all that money" went. Unless you want to be living in a crummy apartment 10 years from now with a ten year old car, get an accountant on board or at least to set up strict financial controls. Too many entrepreneurs are in "also-ran" purgatory because they failed to detect slow decreases in "altitude" while overestimating potential. Hire someone when you're tired of getting five hours of sleep and going no place but to work for several months. You'll be glad you waited.

  2. David Walton says:

    Accountant yes. Also needed are facilities,equipment and data infrastructure for the new employees. Personally, I'd love to seen more jobs in my field opening up, but I'd also hate to see them open up, then close back down. A solid plan forward is necessary before spending any of that capital. I wish them success and wouldn't mind an interview in the least.

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