DocuSign, for electronic signatures, raises $12.4M

September 25, 2007 | Chris Morrison | Comments | |

docusign_logo.gifDocuSign, a company that eases the process of electronically signing documents, has received a $12.4 million cash infusion.

Last year, the Seattle company laid off some of its workers and earlier this year recruited a new CEO, according to the Seattle PI. It has been making a recovery since, and claims that it tripled its business in the first nine months of 2007.

To electronically sign documents, users generally have to check off a box to signify agreement. However, more serious contracts like mortgage agreements require a legally binding signature, which takes more steps, as well as a special authentication code.

Simplifying and speeding up the process of electronically signing important documents for end users is big business for DocuSign; The company estimates that it has processed over four million signatures since its launch in 2003, charging $3 to $5 per “envelope”.

DocuSign counts some highly recognizable names like Expedia, RE/MAX and Sony among its 1,500 customers. Its competitors include EchoSign and Verisign.

The funding was led by WestRiver Capital, although previous investors Frazier Technology Ventures, Ignition Partners and Sigma Partners participated. Together with two previous investments, the total amount of investment in DocuSign to date is about $30 million. The company has 45 employees.

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About the Author, Chris Morrison

Chris Morrison writes about cleantech and environmental issues for VentureBeat, with occasional forays into gaming and semantic technology. He got his start writing about tech for Business 2.0 magazine, but quickly realized new media was the ticket when that institution closed its doors in 2007. Chris has also covered public equities and regulatory issues. He originally hails from southern Virginia, graduated from Evergreen State College in Washington, and now lives in San Francisco.

  • Chris, an electronic signature is indeed a "legal" signature and has been under federal law for seven years now. See: http://en.wikipedia.org/wiki/Electronic_Signatu...

    What you probably meant to say was a "paper" signature which has persisted mainly for cultural reasons rather than legal reasons.
  • Our congratulations to DocuSign for getting more cash from investors to help them grow and perhaps generate revenues that eventually may sustain the company.

    Please note that Yozons, with its Signed & Secured and eSignForms products, is a competitor who has been in business since 2000 and has a fast growing business with significant customers (Enterprise, Citrix, Pitney Bowes, several universities and Comcast among a long list of smaller businesses), many of whom selected Yozons over DocuSign.

    You also failed to mention that alamode's SureDocs is a direct competitor in the print-to-sign electronic signature space and has a fixed annual price that is dramatically less than what DocuSign offers.
  • Christopher Sun
    Another competitor in the space is EchoSign. Echosign has been doing well, particularly through their deep Salesforce integration (via ApEx)
  • Jeffrey: I meant to say what I said, "legally binding". It's not a certainty that your average web signature, from checking a "I agree" box to putting in initials, would hold up in court -- Act or no. Thus, these companies exist, to do the extra work required.

    David: Thanks for mentioning your company.

    Chris: Echosign is mentioned above.
  • Billy McPherson
    Are they still in business? I guess a bad attitude can raise money, but even the founder bailed out
  • another competitor is SigneDocs www.signedocs.com which offers a much better solution.
  • Bobby
    John: Huh? Your link is worthless, probably like the "company" behind it. Never heard of them...

    Billy: The founder didn't bail out -- he was axed after a new ceo was brought in. It's been a desperate attempt to fix a broken company with an "anybody can replicate" technology that they cannot even protect with a patent. I'd guess they won't be along much longer, especially as the economy tightens and people want real solutions instead of toys.