I’m very proud to be able to announce that during what looks like the deepest economic crisis of recent history, SynthaSite’s investors are so confident of our success, that they have increased their investment by a further $20m (R200m). This is testament to the great work that our team have done in building a solid business with a great product. We have also grown our userbase to over 1m from just over 10,000 at the start of last year and we are poised for more radical growth this year.
Even though the world economy is not looking good, the fundamentals of our business remain the same : People everywhere will need websites, today, tomorrow and in 5 years time – when this depression is over! The funny thing is that our business is partially recession-proof, in that as people get retrenched, they start their own small businesses, and therefore need websites.
SynthaSite’s goal is to make it easy enough that anyone with a computer can create a website for their small business, organization or personal needs. We’re building a long term business here – we want to be the undisputed market leader, and this investment goes a long way to getting us there.
The first $5m that we received allowed us to hire 40+ people, create infrastructure, systems, process & support for our business to expand upon. We are now ready to take our product to various large ISP’s & PC Manufacturers and increasing our reach and distribution by getting our product into the mass market. We believe that this $20m investment will allow us to grow very quickly and become the de-facto standard amongst for small business & personal website building.
On a side note, when we first raised the $5m and I moved to San Francisco – I came under criticism from some local South African observers for moving abroad. Today, SynthaSite has created over 20 jobs in Cape Town and we moved 5 of us from Cape Town to San Francisco – this is job creation at it’s best for South Africa. (Thanks to Nic for his blog post today). I’m very proudly still South African and I’m glad to be able to contribute to the local economy and demonstrate what’s possible if you put your mind to it, make sacrifices and keep trying!
And guess what: I’m not alone… guys like Justin Stanford are also out there making things happen in Cape Town, and if this trend continues, Cape Town in particular is going to become the Silicon Cape that I dream of!
TechCrunch gave us some good coverage today and explains a bit about what’s we’re up to – worth a read!
Thanks to everyone for their support thus far – the future certainly looks bright for SynthaSite!