Business

Mindbody raises $50 million from investors to fund growth

Mindbody was co-founded by Rick Stollmeyer.
Mindbody was co-founded by Rick Stollmeyer. dmiddlecamp@thetribunenews.com

With an eye on further growth, MindBody, a San Luis Obispo-based company providing online business management software for clients in the beauty, health and wellness industries, has raised $50 million from a group of current and new investors.

The financing from investors — Bessemer Venture Partners, Institutional Venture Partners, Catalyst Investors, W Capital Partners and Montreux Equity Partners — are helping to fund the company’s global expansion and development of web and mobile products.

More than 500,000 practitioners and 33,000 businesses in 92 countries use MindBody’s “mobile-enabled SaaS (Software as a Service) platform,” said Rick Stollmeyer, MindBody’s chief executive officer and co-founder. The platform allows businesses to manage their operations within a single system, including web scheduling, automated marketing and point-of-sale payment processing.

Last year, the company released a consumer booking app — MindBody Connect — as well as MindBody Exchange, which gives employers a platform to connect employees with health and wellness providers.

In a company statement released Thursday, several investors noted that MindBody is poised for continued growth and strong financial performance.

The company declined to disclose information about the company’s recent financial performance, saying only that it has grown 60 percent annually in the last several years. A previously published Tribune article said the company projected 2012 revenues of $33 million.

“Since our first funding round with MindBody in 2009, the company has exceeded expectations in market penetration and growth year after year,” said Tyler Newton, a partner at Catalyst Investors, MindBody’s largest institutional shareholder. “MindBody’s success comes from its dedication to a continuously evolving product as well as a genuine commitment to the success of the many businesses that use its software.”

The latest round of funding is on top of the $35 million it raised in 2012 in a partnership with Institutional Venture Partners, Catalyst and Bessemer Venture Partners.

MindBody employs 820 people worldwide, with more than 650 of those employees based in San Luis Obispo. Its plans for local expansion include a new, two-story office building and four-level parking structure on the south side of Tank Farm Road.

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