Cambridge, MA (September 4, 2013) – iZotope, Inc., a leading audio technology company, today announced a $12 million investment from ABS Capital Partners, a leading investor in later-stage growth companies. iZotope will use the funds to develop new products, expand their markets and increase sales and marketing efforts. As a result of the financing, ABS Capital general partner Laura Witt will join the Company's board of directors, as will Dean Goodermote, a former ABS Capital portfolio company CEO, a board member of Berklee College of Music, and a successful technology and software executive.
"iZotope is a company driven by a wealth of creative brainpower. Coupled with our position as a market leader, this funding will enable us to realize more of our creative vision, accelerating innovation and new products for our loyal customer base," explained Mark Ethier, CEO and co-founder of iZotope. "Taking outside funding is a huge opportunity, and we felt that ABS Capital would be a true partner in the business. With more resources, we'll be able to expand the reach of our current offerings and develop products to address new opportunities in ways we never imagined."
iZotope, headquartered in Cambridge, Massachusetts, was founded in 2001 and creates professional audio products for the music, entertainment and education industries. The Company's current product portfolio is comprised of solutions for audio creation, repair, mixing and mastering. iZotope's award-winning products and technologies are used by millions of people in over 50 countries. The Company is well-positioned to continue to be at the center of two very important trends. First, production of both audio and video content is increasingly shifting from traditional, expensive studio settings outfitted with hardware tools to software-based production environments. This trend is democratizing audio production to a broader market of freelance professional or "prosumer" producers, eager to acquire affordable, best-in-class tools to differentiate their sound production. Second, the increasing volume of video produced for corporate and educational purposes and the proliferation of user-generated video content create new potential markets for iZotope's audio production tools.
"iZotope already has an incredible brand and is well-recognized for its leading audio technology. It's a unique opportunity to work with a strong, entrepreneurial business to help them broaden their market presence," said Witt. "This new funding means they can reach more customers and markets, and professional and amateur musicians and engineers alike will benefit."
iZotope's products are sold directly online, as well as through brick and mortar and online retail channels such as Guitar Center. The Company's clients include musical giants such as Depeche Mode, Garbage, Skrillex, and Wu-Tang Clan; radio stations and TV programming such as CBS's Survivor, the Discovery Channel's Deadliest Catch, the World Cup broadcast and the GRAMMY awards. iZotope technology is also directly integrated into products made by industry leaders such as Adobe, Avid and Sony; video games from companies like Microsoft, Harmonix and Ubisoft; and a growing number of mobile phone applications. Boston-based MediaBridge Capital Advisors served as the exclusive financial advisor to iZotope in connection with the financing.
At ABS Capital Partners, we have a simple mission—to invest in the very best late-stage growth companies. Our singular focus has allowed us to cultivate a deep understanding of what it takes to get promising businesses to the next level. Our priority is finding the best growth companies—not completing certain types of transactions or investing specific amounts of dollars. Our flexibility allows us to structure the right deal to support a company's growth trajectory and particular needs. We actively partner with CEOs to tackle the challenges of rapid expansion and create significant long-term value. Our partners are highly experienced at working with growth companies—each having spent between one and three decades in their industry as C-level executives, investment bankers, consultants or investors.
ABS Capital Partners specializes in four growth sectors—business and education services, health care, media and communications, and technology—and has invested in over 100 growth companies over the past two decades. With over $2 billion raised since inception, including $500 million in its latest fund, ABS Capital continues to build on its strong reputation for teaming with CEOs and market leaders to deliver strong returns to investors.
For more information, please visit www.abscapital.com.
iZotope makes innovative products that inspire and enable people to be creative. Based in Cambridge, Massachusetts, iZotope has spent over a decade developing award-winning products and audio technologies for professionals and hobbyists alike. Used by millions of people in over 50 countries, iZotope products are a core component of GRAMMY-winning music studios, Oscar and Emmy-winning film and TV post production studios, and prominent radio studios, as well as basement and bedroom studios across the globe. Through a robust licensing program, iZotope also powers products made by industry partners such as Adobe, Avid, Microsoft, and Sony. iZotope was recently honored with an Emmy® Award for Outstanding Achievement in Engineering Development for its flagship audio repair suite, RX®.
For more information on iZotope products, visit www.izotope.com.
For ABS Capital Partners: