SAN LUIS OBISPO, Calif., Aug. 20 /PRNewswire/ -- MINDBODY, Inc., the industry leader in cloud-based, business management software for health and wellness organizations worldwide, has received a major investment from two of the country's most respected venture capital firms, Bessemer Venture Partners and Catalyst Investors. The infusion of private equity, totaling $14 million, includes an initial tranche of $11 million, with an additional $3 million option that may be exercised at any time within the next 36 months.
Named the 21st fastest growing software company by Inc. Magazine's 2009 Inc. 500 list, MINDBODY has capitalized on its successful Software as a Service (SaaS) solution, which includes Web-based scheduling, e-commerce, integrated payment processing and reporting capabilities, as well as a low monthly subscription cost. "To some degree, the recession has worked in our favor, as small and medium-sized businesses search for innovations to help them cut costs and increase revenues," saidRick Stollmeyer, founder and CEO of MINDBODY. "They're also realizing that in the face of rapid technological innovation, they can no longer afford to do business on paper."
Following 60 percent growth and nearly $10 million in revenue in 2009, MINDBODY has accelerated substantially in recent months. The company increased its subscriber base 72 percent year-over-year in the first half of 2010, and is presently serving 9,300 businesses in 62 countries.
"One of the most powerful trends in the software industry is the adoption of Web-based automation by small businesses. With its base fitness, spa, salon and wellness business customers, MINDBODY is already the clear leader in driving this adoption and should continue to experience extraordinary growth," said Jeremy Levine, a partner with Bessemer Venture Partners (BVP) and newly appointed MINDBODY board member. BVP manages more than $2 billion of venture capital invested in more than 130 companies located around the world.
Catalyst Investors, which first contributed $5.6 million to MINDBODY in March 2009, increased their position with a second round of investment. "MINDBODY has demonstrated outstanding performance since our investment last year. We are excited to be 'doubling down' so the company can accelerate its growth going forward," said Tyler Newton, Partner and Research Director at Catalyst Investors. Catalyst makes private equity investments in high-growth, lower middle market companies including SaaS, digital media, Internet infrastructure and wireless communications sectors.
"This investment will further accelerate the pace of our product development. Our aim is to meet or exceed best-of-breed capabilities in every market we serve, while providing game-changing innovations that help our businesses boost their bottom lines, simplify their lives and better focus on the health and wellness of their customers," said Stollmeyer.
The funds will also be used to expand the company's global reach. "We're planning to increase our sales, marketing and support capabilities around the world, with expanded presence in our New York, UK, EU and Australian offices," said Robert Murphy, partner and Chief Sales & Marketing Officer for MINDBODY. "We fully expect these strategic improvements will help us grow another 60 percent in the coming year."
MINDBODY delivers innovative business management software to the wellness industry, including fitness, yoga, Pilates, salons, spas and martial arts businesses. In 2009, the company was ranked 370th on Inc. Magazine's 500 fastest growing companies and 21st in the software industry. It was recently named among the most innovative 100 technology companies in North Americaby Red Herring 100 and by Outside Magazine as among The 50 Best Places to Work. In 2010 MINDBODY expanded its offerings to include mobile applications and a powerful new web technology called MINDBODY Finder that enables consumers to find, book and pay for wellness-oriented classes and appointments through their mobile devices, high-traffic media sites andhttp://www.mindbodyfinder.com. The company serves nearly 10,000 clients in 62 countries and maintains offices in San Luis Obispo, CA, New York and the United Kingdom. http://www.mindbodyonline.com
About Bessemer Venture Partners
Bessemer Venture Partners is a global investment group with offices in Silicon Valley, Boston, New York, Mumbai and Tel Aviv. One of the oldest venture-capital practices in the United States, BVP has partnered as an active, hands-on investor in Ciena, LinkedIn, Postini, Skype, Staples, VeriSign, W.R. Grace and Yelp. More than 100 Bessemer-funded companies have gone public on exchanges in Canada, India, London and the United States. http://www.bvp.com
About Catalyst Investors
Catalyst Investors is a growth private equity fund founded in 2000 that employs a rigorous top-down research focus to identify investment opportunities in companies and industries that will exhibit strong revenue and margin growth. The firm works in true partnership with talented management teams to build long-term value. Catalyst has consistently achieved superior returns with disciplined risk management and a commitment to investor transparency. http://www.catalystinvestors.com
MINDBODY Inc.’s roots go back to 1998, when we were the first software consultancy developing easy-to-use client and teacher management solutions for yoga, pilates, and spinning studios. In 2001, we became an LLC, took the business name "MINDBODY Software," hired our first employees and released the first hosted data synchronization service designed for small business. In 2003, we led the industry again with online scheduling as the first web based, client scheduling tool synchronized to desktop studio management software.Construction of our office building was done naturally and progressively, including a recycling program. Our office building is LEED (Leadership in Energy & Environmental Design) Gold certified." style="border-top-style: none; border-right-style: none; border-bottom-style: none; border-left-style: none; border-width: initial; border-color: initial; border-width: initial; border-color: initial; border-top-width: 0px; border-right-width: 0px; border-bottom-width: 0px; border-left-width: 0px; border-style: initial; border-color: initial; float: right; margin-top: 2px; margin-right: 0px; margin-bottom: 5px; margin-left: 10px; display: block; ">
In 2005, MINDBODY Software's growth began accelerating rapidly when we migrated our business management capabilities to a highly flexible and infinitely scalable, web based, multi-tier platform. The MINDBODY online business management solution proved to be much more powerful and cost effective than desktop software -- ours or anyone else's -- and was rapidly embraced by our clients.
By mid-year, sales of our online solution had completely eclipsed our desktop software. The online solution proved to be so transformational for our clients and us; we realized we had to change our name. We became MINDBODY.
Today, MINDBODY serves thousands of clients in more than 50 countries, and is growing more rapidly than ever before. We are the recognized industry leader for yoga and pilates. And we are rapidly gaining similar recognition in more than a dozen different personal service markets. MINDBODY corporate headquarters are located in San Luis Obispo, California and offices are located in Long Island, London, Singapore, Dubai and China.
Whether you are self-employed and working from home, or the manager of a large multi-location enterprise, MINDBODY will help you simplify your life, boost your revenues and focus more on your clients.
At MINDBODY, we embrace the principles of honesty, fair play, mutual respect and diversity. We seek “Win-Win” partnerships with clients, vendors, and business partners. We believe one party cannot benefit from a relationship unless all parties involved benefit as well. As a company, we seek long-term relationships with people and organizations that live by these same principles.