LogoGarden Secures $2 Million Funding for DIY Logo Maker

LogoGarden DIY logo creatorA puzzling $2 million financing round gives LogoGarden.com strong capital to compete against more popular DIY logo services such as LogoMaker, LogoSnap, and LogoYes. The investment, announced today by LogoGarden, comes from FCA Venture Partners V, the firm’s fifth fund, which is focused on healthcare and digital media companies.

According to Matt King of FCA Venture Partners, “LogoGarden has a unique digital offering. It can scale up without building a large staff. It enables efficient sales growth with low operational costs — this is very attractive from an investment standpoint.”

This goes to show that DIY logo solutions are increasingly popular, despite their obvious drawbacks. DIY software may be cheap, but without proper market research, and custom logotypes, the branding message may fail. DIY logo makers count on clip-art, that may be widely in use by other businesses – meaning that logos such created may not be unique enough to become a recognized symbol of the brand; and the list of cons could go on.

But LogoGarden counts heavily on the pros: DIY logos are cheap, fast, and can be designed by anyone, with or without design experience. Alternatively, customers who don’t want to risk a DIY approach, may opt for LogoGarden’s paid services, which start as low as $289 for three original logos, delivered within three days. But even so, the investment by FCA Venture Partners is still puzzling, in a day and age when popular services like LogoWorks are shot down. Considering LogoGarden’s strong competitors, one wonders whether FCA Venture Partners rushed in what may turn to be a losing proposition.

comparison between LogoGarden and main competitors

LogoGarden has the lowest reach among its competitors.

The question, what is LogoGarden planning with $2 million, becomes imperative. Investing in PR? Redesigning its DIY logo maker, which, by comparison to competitors, is rather mediocre? Investing in a range of other services for businesses? Currently, LogoGarden.com offers custom design services including logos, brochures, postcards and other print materials, plus search engine optimization (SEO) and social media marketing. $2 million may go a long way, offering solid foundation for innovation. But LogoGarden will have to come up with something ground breaking to compete against companies aforementioned.

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Comments

  1. Yvette says

    Upset that anyone would fund them considering Logo Garden is plagiarizing and selling already existing logos from other designers from all over the world…..without permission. Sad sad….

    • Phil Butler says

      Talk about bad PR. Thx for coming to shed light David. Issues like this give us all a bad name and a bad taste too. $2 million bucks when other people have far superior developments and cannot get a penny. What a shame and a disgrace.

      Phil

  2. says

    Seriously now? This company sells logos that belong to other people. As member of a logo design company which has had several logos stolen (see http://blog.logobee.com/?p=961 for details), this leaves me completely speechless. Did FCA Venture Partners V have no idea what they were investing in?

    • Phil Butler says

      @
      LogoBee.

      I was speechless, but I just got over it. For years I have tested startups, watched some struggle, while others foundered over? Over VC with more money than brains or vested interests, whatever.

      All the resource washed over the side since Web 2.0 began, could likely have cured cancer. Thx for coming to shed some light. Unmitigated audacity – highly successful venture capitalists out there, just donate a couple million to a good cause and we will print the good PR.

      Always,
      Phil

  3. says

    Mihaela, thanks for bringing LogoGarden.com to the attention of a broader public. A few quibbles:

    1. Saying DIY software relies on “clip art” implies public-domain artwork available anywhere. We pay well-established professional designers to custom create the thousands of symbols in our graphics database. No “clip art” in the conventional sense.

    2. Our DIY customers — as you point out, many without design experience — create remarkably good logos by combining a symbol with their own business name, sometimes a tagline, then customizing with color, layout, and unique finishing touches like “shadow”, “shine”, and “shield”. You can see examples at our homepage, logogarden.com.

    3. Notice I said “unique” touches. I mean that literally. Other sites don’t offer such cool features for DIY logos.

    4. As you might guess, I respectfully disagree with your opinion of “mediocre”. Value-add professional features like those mentioned above are among several reasons LogoGarden.com rapidly won traction in the DIY marketplace, and continues to gain on older, less innovative competitors.

    5. Another way in which we’re head and shoulders above other DIY logo solutions: LogoGarden.com is the only site that lets you get an instant, matching, mobile webpage with your new logo.

    We have invested in technology to give customers unique advantages like these, and continue to add to our online platform.

    Our capital partner, FCA, saw these and other strong points, plus experienced management, plus a market of nearly 7 million startup businesses every year in the US alone — a market only lightly penetrated by the DIY logo industry as a whole.

    That’s why these highly successful VCs placed their bets on LogoGarden.com.

    Thanks again for your interest!

    • Mihaela Butler says

      John, I never implied that your clip art was public domain, what I meant was that, because of affordability, many businesses will use the same symbols, and despite the shine, shield and shadow features, their logos will look the same. I don’t think I have to mention to you how many branding disasters were experienced by companies because of similar logos. You should warn your clients yourself about the cons of using DIY, just for the sake of transparency.

      About your DIY logo creator, I did test it against your competitors, and in my opinion, it is not that good. You should refine the look and feel, UI and some features. I am not going to go in-depth this time. Believe me, I am not the enemy.

      Now, as you explained in the commend why FCA considered LogoGarden a good investment opportunity, things are a bit more clear, and the news not so puzzling. I still believe that you are going to use the funds for development, aren’t you? That was the entire point.

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