The pandemic, and the consequent social and financial crisis that is already being warned, do not stop the world of entrepreneurs for one minute. On the one hand, many have reconverted their activity to help the health system and others are trying to overcome the slump. But also the great international investments keep up.
This is the case of Frontity, a Spanish startup founded by Pablo Postigo and Luis Herranz that was born in 2015 with the idea of creating a system to convert blogs designed in WordPress into native mobile platforms – now focused on helping the big media to perfect your websites. As The Information has been able to advance, Automatic – a company that owns WordPress – has closed an investment round for 1 million euros. The Fund has also participated in the operation, leading the operation, in addition to several business angels: Walter Kobylanski, co-founder of Gigas, and José María Torroja.
An operation that, despite being announced in the middle of a pandemic, already has a journey. The final signature was made just before the alarm states of Spain and the United StatesTherefore, it has not undergone any variation due to the current situation.
Equally, the operation makes a lot of sense. That the owner of WordPress –a system that, by the way, is used by almost 35% of the websites through WordPress.org– invests in a company dedicated to improving websites based on this platform shows the long journey that the North American company has in your investment decisions.
Frontity is, in any case, his first foray into Spain, but it is far from Automatic’s first operation in the world. For years, the company has been on a mission to find the best plugins to your activity within the WordPress world.
Little known for its investments, Automatic has only participated in 6 operations since 2011, mainly in the United States. OwnLocal, dedicated to multi-channel marketing, WP Engine for user experience on the platform and Presstable focused on hosting are part of their local family. They have only left the country to go to Denmark to invest an unknown amount in Codeable – a WordPress solutions company – and to South Africa with an investment of $ 225,000 a startup focused on trading on the platform, Grapflow.
The last one, in February of this year and just before the most complicated moments of the pandemic, was Strattic in Israel; an attraction point for many American investments. 6.5 million capital for the company, according to TechCrunch dedicated to reducing database queries for WordPress-based sites: an improvement focused on increasing web security. Other of the most logical investments for the American company that invested in a foreign technology that failed to raise funds in Isreael, where the funds were not interested in WordPress-based systems.
However, it is the purchases that have defined Automatic; 20 since the company decided to enter the technological talent purchasing markets. Most of them before 2015, are the ones that have resonated the most in the sector in recent years. Atavist or Prospress forming part of its portfolio of recent years or the last one, in 2019, taking over the CRMs developer, ZBS CRM.
But it was in the summer of that same year when the most striking acquisition of Automatic reached the media. For less than $ 3 million, according to sources at the time, quite a bargain considering its track record, Automatic bought Tumblr owned by Verizon after absorbing Yahoo! in 2017.
Yahoo! itself, in 2013, advertised in style the $ 1.1 billion acquisition of Tumblr just before Facebook or Instagram dominated the world of social media. The truth is that the strong bet of Yahoo! It was abandoned shortly after, making the operation a failure. The low speed of adaptation to mobile platforms, imposed by the huge bureaucracy of Yahoo!, killed the success of the internet in the face of its competition.
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