99designs Plans to Expand to Japan with $10 Million Funding
The San Francisco based online graphic design marketplace, 99designs is spreading its wings into new territories namely Asia and Japan; and for that they have raised $10 million in a Series B funding.
Now $10 million is really a big figure, but apparently the chief executive officer of 99designs, Patrick Llewellyn doesn’t look at it that way. He believes that this step is “not about the money we could raise.” Rather, he insists that the intention behind all this is the core goal of the company right now i.e. entering Japan and Asia with a strong partnership.
Llewellyn further added that now they don’t require a humongous amount of funding to continue the growth – the opportunity to expand in a new market, however, required some money:
We have an established business and model that doesn’t require significant capital to fuel its growth, but gaining access to real local market knowledge and distribution channels, coupled with the opportunity to gain broader access to enterprise customers within the Recruit network, was an opportunity too good to pass up.
You might be thinking why would a company that is the size of 99designs refer to $10 million as not a sum that is not “significant capital,” but you should know that it is the same company that was previously raised $35 million in a massive funding round led by Accel Partners.
There are primarily three reasons why 99designs is travelling to Japan, their “steep history in design,” the demanding economy and their growth in labor market.
Do you think they will be successful in this venture?