Clari uses AI to help companies find key information like the customers most likely to convert, the state of orders in the sales process or the next big sources of revenue. As its revenue management system continues to flourish, the company announced a $60 million Series D investment today.
Sapphire Ventures led the round with help from new-comer Madrona Venture Group and existing investors Sequoia Capital, Bain Capital Ventures and Tenaya Capital. Today’s investment brings the total raised to $135 million, according to the company.
The valuation, which CEO and co-founder Andy Byrne pegged at around a half a billion, appears to be hefty raise from what the company was likely valued at in 2018 after its $35 million Series C. As TechCrunch’s Ingrid Lunden wrote at the time:
“For some context, Clari, according to Pitchbook, had a relatively modest post-money valuation of $83.5 million in its last round in 2014, so my guess is that it’s now comfortably into hundred-million territory, once you add in this latest $35 million,” Lunden wrote.
Byrne says the company wasn’t even really looking for a new round, but when investors came knocking, he couldn’t refuse. “On the fundraise side, what’s really interesting is how this whole thing went down. We weren’t out looking, but we had a massive amount of interest from a lot of firms. We decided to engage, and we got it done in less than three weeks, which the board was kind of blown away by,” Byrne told TechCrunch.
What’s motivating these companies to invest is that Clari is helping to define this revenue operations category, and has attracted companies like Okta, Zoom and Qualtrics as customers. What they are providing is this AI-fueled way to see where the best sales opportunities are to drive revenue, and that’s what every company is looking for. At the same time, Byrne says that he’s moving companies away from a spreadsheet-driven record keeping system, and enabling them to see the all of the data in one place.
“Clari is allowing a rep to really understand where they should spend time, automating a lot of things for them to close deals faster, while giving managers new insights they’ve never had before to allow them to drive more revenue. And then we’re getting them out of ‘Excel hell.’ They’re no longer in these spreadsheets. They’re in Clari, and have more predictability in their forecasting,” he said.
Clari was founded in 2012 and is headquartered in Sunnyvale, CA. It has over 300 customers and just passed the 200 employee mark, a number that should increase as the company uses this money to begin to accelerate growth and expand the product’s capabilities.
By Ron Miller