Cloud email service startup SendGrid raises $5 mn

SAN FRANCISCO, US: Boulder, Colorado-based SendGrid, a provider of a cloud-based email service that helps companies deliver and track emails sent to its users, raised $5 million in Series A financing last week.

The company, which was one of several startups nationwide to raise venture financing, raised the cash from Foundry Group, Highway12 Ventures, SoftTech VC and individual investors Dave McClure, David Cohen, Scott Petry and Matt Mullenweg.

SendGrid is a graduate of the annual TechStars entrepreneurial program held each year in Boulder to showcase promising startups. Ryan McIntyre, managing director of Foundry and a board member of SendGrid, mentored Isaac Saldana, SendGrid's co-founder and CEO, during the TechStars program last summer and spearheaded Foundry's efforts to lead the investment round.

Saldana said the company is currently profitable, but the funding will help it grow. SendGrid reportedly services about 4,000 companies, which use its email deliverability services. Users pay monthly prices that range from $10 for 10,000 emails, to $800 for 500,000 emails, in addition to other premium features.

Saldana said he plans to hire about 20 people on staff by the end of the year, raising the count to about 30. He's looking to hire primarily software engineers in addition to sales, marketing and business development staff.