Productivity app maker Evernote announced a US$85 million funding round, although the majority of the cash will go to existing investors and shareholders – the company will gain US$21.25 million as a result.
In a blog post, Phil Libin, its CEO, said that the cash will “make sure that Evernote can continue to focus all of our energy on building the best possible products, without being distracted by external market conditions”.
He continued: “It’s nice to have this extra peace of mind, even if we don’t strictly need it.”
Giving existing investors and shareholders the chance to sell some of their shareholdings now is intended to “reduce the pressure to exit while at the same time forging relationships with important new long-term investors who can help shepherd the company to, through and beyond an eventual IPO”.
Libin said that “there is no exit strategy at Evernote. Our goal is to build a permanently meaningful and enduring company; a hundred year startup”.
The latest round was led by AGC Equity Partners/m8 Capital with participation from Valiant Capital Partners and existing investors.