Return Path Raises $35 Million and Looks to go Public

Return Path, a New York-based data analytics company focused on marketing automation and fraud detection, raised a $35 million funding round led by new investor, private equity firm Vista Equity Partners LLC.

Vista is joined by current investors Union Square Ventures, Costanoa Venture Capital, Foundry Group LLC, Sapphire Ventures (formerly SAP Ventures), and Industry Ventures LLC.

The company is in the $100 million range in revenue, said founder and CEO Matt Blumberg. "We are giving serious thought to going public," he said. "Companies like ours go public at $50 million, they go public at $200 million."

The company was founded in December 1999.

Return Path uses a proprietary data set to help marketers understand the behaviors and activities of their customers outside of their interactions with them. It also focuses on fraud prevention.

The company has made 12 acquisitions since it was founded. Blumberg said while there are no companies they are specifically looking at, "it is always something we think of." He said deals would be for technology or a team.

Representative of those acquisitions was this year's deal for Deliverability.com. Also in early 2012, it bought OtherInbox, a Texas-based startup that works with legacy email service providers to allow individual users to better organize their digital communications, while in 2008, Return Path bought Habeas, another startup in the email technology space.

Prior fundraisings before the latest one totaled $63 million, according to Crunchbase.

There are currently 420 employees; Blumberg said he expects there to be close to 600 by this time next year.

Return Path did not use bankers on the capital raise. Its general counsel is Finn Dixon & Herling LLP. KPMG is the company's auditor.

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