EverAfter closes $13M to help companies ride off into the sunset with their customers

EverAfter secured $13 million in seed funding to continue developing its no-code customer-facing tool that streamlines onboarding and retention and enables business-to-business clients to embed personalized customer portals within any product.

The Tel Aviv-based company was founded in 2020 by Noa Danon and Tal Shemesh. CEO Danon, who comes from a project management background, said they saw a disconnect between the user and product experience.

The company’s name, EverAfter, comes from the concept that in SaaS companies, someone has to be in charge of the “EverAfter,” with customers, even as the relationship changes, Danon told TechCrunch.

Via its no-code platform, customer success teams are able to build a website in weeks using drop-and-drag widgets like training materials, timelines, task management and meeting summaries, and then configure what each user sees. Then there is a snippet of code that is embedded into the product.

EverAfter also integrates with existing customer relationship management, project management and service ticket tools, while also updating Salesforce and HubSpot directly through an interface.

“It’s like the customer owns a piece of real estate inside the product,” Danon said.

TLV Partners and Vertex Ventures co-led the round and were joined by angel investors Benny Shneider, Zohar Gilon and Amit Gilon.

Yanai Oron, general partner at Vertex Ventures, said he is seeing best-in-breed companies try to solve customer churn or improve the relationship process on their own and failing, which speaks to the complexity of the problem.

Startups in this space are coming online and raising money, but with EverAfter, they are differentiating themselves by not only putting a dashboard on their product, but launching with the capabilities to manage thousands of customers using the product, he added.

“I’ve been tracking the customer success space over the past few years, and it is a growing field with the least sophisticated tools,” Oron said. “During COVID, companies realized it was easier to retain customers rather than get new ones. We are all used to more self-service and wanting to get the answer ourselves, and customers are the same. Companies also started to be more at ease in letting customers develop things on their own and leave R&D departments to do other things.”

Clients include Taboola, AppsFlyer and Verbit, with Verbit reporting its company’s customer success managers save 10 hours a week managing ongoing customer communication by using EverAfter, Danon added. This comes as CallMiner reports that unplanned customer churn costs companies $35.3 billion in the U.S. alone.

EverAfter offers both customer success and partner management software and clients can choose a high-touch service or kits and templates for self-service.

The new funding will enable the company to focus on integration and expansion into additional use cases. Since being founded, EverAfter has grown to 20 employees and 30 customers. The founders also want to utilize the data they are collecting on what works and doesn’t work for each customer.

“There are so many interesting things that happen between companies and customers, from onboarding to business reviews, and we are going to expand on those,” Danon said. “We want to be the first thing companies put inside their product to figure out the relationship between customers and customer success teams and managers.”

 


By Christine Hall

There could be more to the Salesforce+ video streaming service than meets the eye

When Salesforce announced its new business video streaming service called Salesforce+ this week, everyone had a reaction. While not all of it was positive, some company watchers also wondered if there was more to this announcement than meets the eye.

If you look closely, the new initiative suggests that Salesforce wants to take a bite out of LinkedIn and other SaaS content platforms and publishers. The video streaming service could be a launch point for a broader content platform, where its partners are producing their own content and using Salesforce+ infrastructure to help them advertise to and cultivate their own customers.

The video streaming service could be a launch point for a broader content platform, where its partners are producing their own content and using Salesforce+ infrastructure to help them advertise to and cultivate their own customers.

The company has, after all, done exactly this sort of thing with its online marketplaces and industry events to great success. Salesforce generated almost $6 billion in its most recent quarterly earnings report. That mostly comes from selling its sales, marketing and service software, not any kind of content production, but it has lots of experience putting on Dreamforce, its massive annual customer event, as well as smaller events throughout the year around the world.

On its face, Salesforce+ is a giant, ambitious and quite expensive content marketing play. The company reportedly has hired a large professional staff to produce and manage the content, and built a broadcasting and production studio designed to produce quality shows in-house. It believes that by launching with content from Dreamforce, its highly successful customer conference, attended by tens of thousands people every year pre-pandemic, it can prime the viewing pump and build audience momentum that way, perhaps even using celebrities as it often does at its events to drive audience. It is less clear about the long-term business goals.


By Ron Miller

Youreka Labs spins out with $8M to provide smart mobile assistant apps to field workers

Mobile field service startup Youreka Labs Inc. raised an $8 million Series A round of funding co-led by Boulder Ventures and Grotech Ventures, with participation from Salesforce Ventures.

The Maryland-based company also officially announced its CEO — Bill Karpovich joined to lead the company after previously holding executive roles with General Motors and IBM Cloud & Watson Platform.

Youreka Labs spun out into its own company from parent company Synaptic Advisors, a cloud consulting business focused on the customer relationship management transformations using Salesforce and other artificial intelligence and automation technologies.

The company is developing robotic smart mobile assistants that enable frontline workers to perform their jobs more safely and efficiently. This includes things like guided procedures, smart forms and photo or video capture. Youreka is also embedded in existing Salesforce mobile applications like Field Service Mobile so that end-users only have to operate from one mobile app.

Youreka has identified four use cases so far: healthcare, manufacturing, energy and utilities and the public sector. Working with companies like Shell, P&G, Humana and the Transportation Security Administration, the company’s technology makes it possible for someone to share their knowledge and processes with their colleagues in the field, Karpovich told TechCrunch.

“In the case of healthcare, we are taking complex medical assessments from a doctor and pushing them out to nurses out in the field by gathering data into a simple mobile app and making it useful,” he added. “It allows nurses to do a great job without being doctors themselves.”

Karpovich said the company went after Series A dollars because it was “time for it to be on its own.” He was receiving inbound interest from investors, and the capital would enable the company to proceed more rapidly. Today, the company is focused on the Salesforce ecosystem, but that can evolve over time, he added.

The funding will be used to expand the company’s reach and products. He expects to double the team in the next six to 12 months across engineering to be able to expand the platform. Youreka boasts 100 customers today, and Karpovich would also like to invest in marketing to grow that base.

In addition to the use cases already identified, he sees additional potential in financial services and insurance, particularly for those assessing damage. The company is also concentrated in the United States, and Karpovich has plans to expand in the U.K. and Europe.

In 2020, the company grew 300%, which Karpovich attributes to the need of this kind of tool in field service. Youreka has a licensing model with charges per end user per month, along with an administrative license, for the people creating the apps, that also charges per user and per month pricing.

“There are 2.5 million jobs open today because companies can’t find people with the right skills,” he added. “We are making these jobs accessible. Some say that AI is doing away with jobs, but we are using AI to enhance jobs. If we can take 90% of the knowledge and give a digital assistant to less experienced people, you could open up so many opportunities.”

 


By Christine Hall

Salesforce wants Salesforce+ to be the Netflix of biz content

Salesforce just closed a $28 billion mega-deal to buy Slack, generating significant debt along the way, but it’s not through spending big money.

Today the CRM giant announced it was taking a leap into streaming media with Salesforce+, a forthcoming digital media network with a focus on video that, in the words of the company, “will bring the magic of Dreamforce to viewers across the globe with luminary speakers.” (Whether that’s a good thing or not is in the eye of the beholder.)

Over the last year, Salesforce has watched companies struggle to quickly transform into fully-digital entities. The Slack purchase is part of Salesforce’s response to the evolving market, but the company believes it can do even more with an on-demand video service providing business content around the clock.

Salesforce president and CMO Sarah Franklin said in an official post that her company has had to “reimagine how to succeed in the new digital-first world.” The answer apparently is involves getting the larger Salesforce community together is a new live, and recorded video push.

In a Q&A with Colin Fleming, Salesforce’s senior vice president of Global Brand Marketing, he sees it as a way to evolve the content the company has been sharing all along. “As a result of the pandemic, we looked at the media landscape, where people are consuming content, and decided the days of white papers in a business-to-business setting were no longer interesting to people. We’re staring at a cookie-less future. And looking at the consumer world, we reflected on that for Salesforce and asked, “Why shouldn’t we be thinking about this too,” he said in the Q&A.

The company’s efforts are not small. Axios reports that there are “50 editorial leads” aboard the project to help it launch, and “hundreds of people at Salesforce currently working on Salesforce+” more broadly.

Notably Salesforce does not have near-term monetization plans for Salesforce+. The service will be free, and will not feature external advertising. Salesforce+ will launch in September in conjunction with Dreamforce and include four channels: Primetime for news and announcements, Trailblazer for training content, Customer 360 for success stories and Industry Channels for industry-specific offerings.

The company hopes that by combining the announcement with Dreamforce, it will help drive interest in what Salesforce has cooked up. After the Dreamforce push, Salesforce+ will enter into interesting territory. How much do Salesforce customers, and the larger business community really want what the company describes as “compelling live and on-demand content for every role, industry and line of business,” and “engaging stories, thought leadership and expert advice”?

Salesforce is considered the most successful SaaS-first company in history, and as such may have an opinion that people are interested in hearing. In its most recent quarterly earnings report in May, the company disclosed $5.96 billion in revenue, up 23% compared to the year-ago quarter, putting it close to a $25 billion run rate. The company also generates lots of cash. But being cash-rich doesn’t absolve the question of whether this new streaming effort will prove to be a money pit, costing buckets of cash to produce with limited returns.

The service sounds a bit like your LinkedIn feed brought to life, but in video form. At the very least, it’s probably the largest content marketing scheme of all time, but can it ever pay for itself either as a business unit or through some other monetization plans (like advertising) down the road?

Brent Leary, founder and principal analyst at CRM essentials says that he could see Salesforce eyeing advertising revenue with this venture and having it all tie into the Salesforce platform. “A customer could sponsor a show, advertise a show, or possibly collaborate on a show. And have leads generated from the show directly tied to the activity from those options while tracking ROI, and it’s all done on one platform. And the content lives on with ads living on with them,” Leary told TechCrunch.

Whether that’s the ultimate goal of this venture remains to be seen, but Salesforce has proven that there is market appetite for Dreamforce content at least in the physical world with over a hundred thousand people involved in 2019, the last time the company was able to hold a live event. While the pandemic shifted most traditional conference activity into the digital realm, making Dreamforce and related types of content available year-round in video format makes some sense in that context.

Precisely how the company will justify the sizable addition to its marketing budget will be interesting; measuring ROI from video products is not entirely straightforward when it is not monetized directly. And sooner or later it will have to have some direct or indirect impact on the business or face questions from shareholders on the purpose of the venture.


By Ron Miller

DealHub raises $20M Series B for its sales platform

DealHub.io, an Austin-based platform that helps businesses manage the entire process of their sales engagements, today announced that it has raised a $20 million Series B funding round. The round was led by Israel Growth Partners, with participation from existing investor Cornerstone Venture Partners. This brings DealHub’s total funding to $24.5 million.

The company describes itself as a ‘revenue amplification’ platform (or ‘RevAmp,’ as DealHub likes to call it) that represents the next generation of existing sales and revenue operations tools. It’s meant to give businesses a more complete view of buyers and their intent, and streamline the sales processes from proposal to pricing quotes, subscription management and (electronic) signatures.

“Yesterday’s siloed sales tools no longer cut it in the new Work from Anywhere era,” said Eyal Elbahary, CEO & Co-founder of DealHub.io. “Sales has undergone the largest disruption it has ever seen. Not only have sales teams needed to adapt to more sophisticated and informed buyers, but remote selling and digital transformation have compelled them to evolve the traditional sales process into a unique human-to-human interaction.”

The platform integrates with virtually all of the standard CRM tools, including Salesforce, Microsoft Dynamics and Freshworks, as well as e-signature platforms like DocuSign.

The company didn’t share any revenue data, but it notes that the new funding round follows “continued multi-year hyper-growth.” In part, the company argues, demand for its platform has been driven by sales teams that need new tools, given that they — for the most part — can’t travel to meet their (potential) customers face-to-face.

“Revenue leaders need the agility to keep pace with today’s fast and ever-changing business environment. They cannot afford to be restrained by rigid and costly to implement tools to manage their sales processes,” said Uri Erde, General Partner at Israel Growth Partners. “RevAmp provides a simple to operate, intuitive, no-code solution that makes it possible for sales organizations to continuously adapt to the modern sales ecosystem. Furthermore, it provides sales leaders the visibility and insights they need to manage and consistently accelerate revenue growth. We’re excited to back the innovation DealHub is bringing to the world of revenue operations and help fuel its growth.”


By Frederic Lardinois

Salesforce updates includes sales info overlay for Zoom meetings

The pandemic has clearly had an impact on the way we work, and this is especially true for salespeople. Salesforce introduced a number updates to Sales Cloud this morning including Salesforce Meetings, a smart overlay for Zoom meetings that gives information and advice to the sales team as they interact with potential customers in online meetings.

Bill Patterson, EVP and General Manager of CRM applications at Salesforce says that the company wanted to help sales teams manage these types of interactions better and take advantage of the fact they are digital.

“There’s a broad recognition, not just from Salesforce, but really from every sales organization that selling is forever changed, and I think that there’s been a broad understanding, and maybe a surprise in learning how effective we can be in the from anywhere kind of times, whether that’s in office or not in office or whatever,” Patterson explained.

Salesforce Meetings gives that overlay of information, whether it’s advice to slow down the pace of your speech or information about the person speaking. It can also compile action items and present a To Do list to participants at the end of each meeting to make sure that tasks don’t fall through the cracks.

This is made possible in part through the Einstein intelligence layer that is built across the entire Salesforce platform. In this case, it takes advantage of a new tool called Einstein Intelligent Insights, which the company is also exposing as a feature for developers to build their own solutions using this tool.

For sales people who might find the tool a bit too invasive, you can dial the confidence level of the information up or down on an individual basis, so that you can get a lot of information or a little depending on your needs.

For now, it works with Zoom and the company has been working closely with the Zoom development team to provide the API and SDK tooling it needs to pull something like this off, according to Patterson. He notes that plans are in the works to make it compatible with WebEx and Microsoft Teams in the future.

While the idea was in the works prior to the pandemic, COVID created a sense of urgency for this kind of feature, as well as other features announced today like Pipeline Inspection, which uses AI to analyze the sales pipeline. It searches for changes to deals over time with the goal of finding the ones that could benefit most from coaching or managerial support to get them over the finish line.

Brent Leary, founder and principal analyst at CRM Essentials says that this ability to capture information in online meetings is changing the way we think about CRM.

“The thing the caught my attention is how tightly integrated video meetings/collaboration is now into sales process. This is really compelling because meeting interactions that may not find their way into the CRM system are now automatically captured,” Leary told me.

Salesforce Meetings is available today, while Pipeline Inspection is expected to be available this summer.


By Ron Miller

With Hyperforce, Salesforce lets you move your data to any public cloud

For much of its existence, Salesforce was a cloud service on its own with its own cloud resources available for its customers, but as the company and cloud computing in general has evolved, Salesforce has moved some of its workloads to other clouds like AWS, Azure and Google. Now, it wants to allow customers to do the same.

To help facilitate that, the company announced Hyperforce today at its Dreamforce customer conference, a new architecture designed from the ground up to help customers deliver workloads to the public cloud of choice.

The idea behind Hyperforce is to enable customers to take all of the data in what Salesforce calls Customer 360 — that’s the company’s detailed view of the customer across channels, Salesforce products and even other systems outside the Salesforce family — and be able to store that in whichever public cloud you want in whatever region you happen to operate. For now, they are in India and Germany, but there are plans to add support for 10 additional countries over the next year.

Company president and CTO Bret Taylor introduced the new approach. “We call this new capability Hyperforce. Simply put, we’ve been working to enable us to deliver Salesforce on public cloud infrastructure all around the world,” Taylor said.

Holger Mueller, an analyst at Constellation Research, says the underlying architecture running the Salesforce system is long overdue for an overhaul. At over 20 years old, it’s been around a long time now, but Mueller says that it’s about more than modernizing. “The pandemic requires SaaS vendors to move their offerings from their own data centers to [public cloud] data centers, so they can offer both architectural and commercial elasticity to their customers,” he said.

Mueller added that by bringing Salesforce data into the public cloud, besides the obvious data sovereignty issues it solves, it bring all of the advantages of using public cloud resources.

“Salesforce can now offer both architectural and commercial elasticity to their customers. Commercial elasticity matters a lot to CIOs and CTOs these days because when your business slows down, you pay less, and when your business accelerates, then you can afford to pay more,” he said. He says that Salesforce is bringing an early generation SaaS product and pulling it into the modern age, something that is imperative at this point in the company’s evolution.

But while moving forward, Taylor was careful to point out that they rebuilt the system in such a way as to be fully backwards compatible, so you don’t have to throw out all of the applications and investment you’ve made over the years, something that most companies couldn’t afford to do.”For you developers out there, This is the most remarkable thing. It is 100% backwards compatible, your apps will work with no changes and you can benefit from all of this automatically,” he said.

The company will be rolling out Hyperforce over the next year and beyond as it opens in more regions.


By Ron Miller

Freshworks (re-)launches its CRM service

Freshworks, the customer and employee engagement company that offers a range of products, from call center and customer support software to HR tools and marketing automation services, today announced the launch of its newest product: Freshworks CRM. The new service, which the company built on top of its new Freshworks Neo platform, is meant to give sales and marketing teams all of the tools they need to get a better view of their customers — with a bit of machine learning thrown in for better predictions.

Freshworks CRM is essentially a rebrand of the company’s Freshsales service, combined with the company’s capabilities of its Freshmarketer marketing automation tool.

“Freshworks CRM unites Freshsales and Freshmarketer capabilities into one solution, which leverages an embedded customer data platform for an unprecedented and 360-degree view of the customer throughout their entire journey,” a company spokesperson told me.

The promise here is that this improved CRM solution is able to provide teams with a more complete view of their (potential) customers thanks to the unified view — and aggregated data — that the company’s Neo platform provides.

The company argues that the majority of CRM users quickly become disillusioned with their CRM service of choice — and the reason for that is because the data is poor. That’s where Freshworks thinks it can make a difference.

Freshworks CRM delivers upon the original promise of CRM: a single solution that combines AI-driven data, insights and intelligence and puts the customer front and center of business goals,” said Prakash Ramamurthy, the company’s chief product officer. “We built Freshworks CRM to harness the power of data and create immediate value, challenging legacy CRM solutions that have failed sales teams with clunky interfaces and incomplete data.”

The idea here is to provide teams with all of their marketing and sales data in a single dashboard and provide AI-assisted insights to them to help drive their decision making, which in turn should lead to a better customer experience — and more sales. The service offers predictive lead scoring and qualification, based on a host of signals users can customize to their needs, as well as Slack and Teams integrations, built-in telephony with call recording to reach out to prospects and more. A lot of these features were already available in Freshsales, too.

“The challenge for online education is the ‘completion rate’. To increase this, we need to understand the ‘Why’ aspect for a student to attend a course and design ‘What’ & ‘How’ to meet the personalized needs of our students so they can achieve their individual goals,” said Mamnoon Hadi Khan, the chief analytics officer at Shaw Academy. “With Freshworks CRM, Shaw Academy can track the entire student customer journey to better engage with them through our dedicated Student Success Managers and leverage AI to personalize their learning experience — meeting their objectives.”

Pricing for Freshworks CRM starts at $29 per user/month and goes up to $125 per user/month for the full enterprise plan with more advanced features.


By Frederic Lardinois

SAP shares fall sharply after COVID-19 cuts revenue, profit forecast at software giant

SAP announced its Q3 earnings yesterday, with its aggregate results down across the board. And after missing earnings expectations, the company also revised its 2021 outlook down. The combined bad news spooked investors, crashing its shares by over 20% in pre-market trading and the stock wasn’t showing any signs of improving in early trading.

The German software giant has lost tens of billions of dollars in market cap as a result.

The overall report was gloomy, with total revenues falling 4% to €6.54 billion, cloud and software revenue down 2%, and operating profit down 12%. The only bright spot was its pure-cloud category, which grew 11% to €1.98 billion.

SAP’s revenue result was around €310 million under expectations, though its per-share profit beat both adjusted, and non-adjusted expectations.

While SAP’s big revenue miss might have been enough to send investors racing for the exits, its revised forecast doubled concerns. Even though the company said that its customers are accelerating their move to the cloud during the pandemic — something that TechCrunch has been tracking for some time now — SAP also said that the pandemic is slowing sales, and large projects.

Constellation Research anayst Holger Mueller says this is resulting in an unexpected revenue slow-down.

“What has happened at SAP is a cloud revenue delay as customers know that SAP is only investing into cloud products, and they have to migrate to those in the future. The news is that SAP customers are not migrating to the cloud during a pandemic,” Mueller told TechCrunch.

In a sign of the times, SAP spent a portion of its earnings results talking about 2025 results, a maneuver that failed to allay investor concerns that the pandemic was dramatically impacting SAP’s business today and in the coming year.

For 2020, SAP made the following cuts to its forecasts:

  • €8.0 – 8.2 billion non-IFRS cloud revenue at constant currencies (previously €8.3 – 8.7 billion
  • €23.1 – 23.6 billion non-IFRS cloud and software revenue at constant currencies (previously €23.4 – 24.0 billion)
  • €27.2 – 27.8 billion non-IFRS total revenue at constant currencies (previously €27.8 – 28.5 billion)
  • €8.1 – 8.5 billion non-IFRS operating profit at constant currencies (previously €8.1 – 8.7 billion)

So, €300 million to €500 million in cloud revenue is now gone, along with €300 million to €400 million in cloud and software revenue, and €600 to €700 million in total revenue. That cut profit expectations by up to €200 million.

The company, however, is trying to put a happy face on the future projections, believing that as the impact of COVID begins to diminish, existing customers will eventually shift to the cloud and that will drive significant new revenues over the longer term. The trade-off is short-term pain for the next year or two.

“Over the next two years, we expect to see muted growth of revenue accompanied by a flat to slightly lower operating profit. After 2022 momentum will pick up considerably though. Initial headwinds of the accelerated cloud transition will start to turn into tailwinds for revenue and profit. […] That translates to accelerated revenue growth and double digit operating profit growth from 2023 onwards,” SAP CFO Luka Mucic said in a call with analysts this morning.

The question now becomes can they meet these projections, and if the longer-term approach during a pandemic will placate investors. As of this morning, they weren’t looking happy about it.


By Ron Miller

Extra Crunch Partner Perk: Get 6 months free of Zendesk Support and Sales CRM

We’re excited to announce an update to the Extra Crunch Partner Perk from Zendesk. Starting today, annual and two-year Extra Crunch members that are new to Zendesk, and meet their startup qualifications, can now receive six months of free access to Zendesk’s Sales CRM, in addition to Zendesk Support Suite, Zendesk Explore and Zendesk Sunshine.

Here is an overview of the program.

Zendesk is a service-first CRM company with support, sales and customer engagement products designed to improve customer relationships. This offer is only available for startups that are new to Zendesk, have fewer than 100 employees and are funded but have not raised beyond a Series B.

The Zendesk Partner Perk from Extra Crunch is inclusive of subscription fees, free for six months, after which you will be responsible for payment. Any downgrades to your Zendesk subscription will result in the forfeiture of the promotion, so please check with Zendesk first regarding any changes ([email protected]). Some add-ons such as Zendesk Talk and Zendesk Sell minutes are not included. Complete details of what’s included can be found here.


By J.M. Donaldson

Scratchpad announces $3.6M seed to put work space on top of Salesforce

One thing that annoys sales people is entering data into a CRM like Salesforce because it’s time spent not selling. Part of the problem is Salesforce is a database and as such is not necessarily designed for speed. Scratchpad wants to simplify that process by creating a workspace on top of the CRM to accelerate the administrative side of the job.

Today, the company announced a $3.6 million seed round led by Accel with participation from Shrug Capital and Sound Ventures, the firm run by Ashton Kutcher and Guy Oseary, as well as several individual investors. The round, which closed at the end of last year, hadn’t been previously announced.

Last year, company co-founder and CEO Pouyan Salehi had just stepped down from his previous company PersistIQ, a sales enablement startup that came out of Y Combinator in 2014. He and his co-founder Cyrus Karbassiyoon began researching a new company, and the idea for Scratchpad came to them when they simply sat down and watched how salespeople were working. They noted that they were using a hodgepodge of tools like taking notes in Evernote or Google Docs, tracking their pipeline in Excel or Google Sheets and tracking tasks with paper lists or sticky notes.

They recognized that these tools were disconnected from Salesforce and required hours of manual work copying and pasting this data. That’s when they saw there was an opportunity here to build a tool to track all of this information in one place and connect it to Salesforce to automate a lot of this grunt work.

“It eventually evolved into this idea that we’re calling “The Workspace” because everyone has Salesforce, but they are working with all of these other tools that then they just have to literally spend hours — and we saw some reps block off four hour chunks on their calendar — just to copy and paste from their documents, spreadsheets or notes into Salesforce for their pipeline reviews. And that’s how the idea for Scratchpad came to be,” Salehi told TechCrunch.

Today, a salesperson can install Scratchpad as a Chrome plug-in, connect to Salesforce with their log-in credentials and create a two-way connection between the tools. Scratchpad pulls all of their pipeline data into the WorkSpace. They can cycle through the various fields to enter information quickly, enter notes and track tasks (which can be pulled from email and calendar) all in one place.

What’s more, because all of this information is linked to Salesforce, anything you enter in Scratchpad updates the corresponding fields and sections in Salesforce automatically. And any new opportunities that start in Salesforce update in Scratchpad.

The company has been operating for about a year and has 1000s of users, although many are currently using the free tier. It has 7 employees with plans to hire more over the next year. As he builds his second company, Salehi says he and his co-founder are building on a foundation of diversity and inclusion.

“By nature, we are very diverse in many different perspectives that you can look at including gender, age, location and backgrounds,” he said. He adds that building a diverse and inclusive workforce is important to the company.

“And so even in our hiring process, we incorporated certain elements just to make sure that we’re not introducing bias in any sort of way, or at least recognizing that the natural bias and thoughts we might have. We look at things like doing blind looks at resumes and it’s something that we take very, very seriously,” he said.

While the company is built on top of Salesforce today, he says it could expand to include other databases or sources of information where the product could also work. For now though, he sees an opportunity to build another company in the sales arena to help reduce the amount of work associated with updating the CRM database.


By Ron Miller

HubSpot’s new end-to-end sales hub aims to simplify CRM for mid-market customers

HubSpot, the Boston firm that made its name by helping to define the in-bound marketing concept, sees a pandemic landscape that’s changing the way companies sell, forcing more inside sales. Today, the company announced the HubSpot Sales Hub Enterprise at Inbound, their annual conference being held virtually this year.

While the company has been offering a CRM tool for five years now, where they feel they have addressed ease of use issues for sales people, the new tool is about bringing a new end-to-end approach addressing the needs of sales people, as well as management and system admins, says Lou Orfanos, GM and VP of Sales Hub at HubSpot.

“So, this is about [providing customers with a more powerful set of tools] and also just making sure that you can run your sales process end to end in our platform. We feel really good about being able to offer that out of the box natively and being able to do everything you need to do [in one tool], which is I think pretty unique given the state of the market and having to [cobble] a bunch of things together yourself,” Orfanos explained.

While the previous product was aimed more at smaller businesses, CMO Yamini Rangan, who previously worked at Dropbox, Workday and SAP, says this product is aimed more at mid-market companies with more complex sales workflows.

“What we find is that the customer experience for a 500 person company or for a 1000 person company is quite different and their expectations are quite different than a 10 person small business. What the Sales Hub Enterprise specifically brings is the ease of use, as well as the powerful features […] to a larger mid-market organization,” Rangan said.

HubSpot specifically sees larger companies in this space like Adobe, Salesforce and SAP acquiring different pieces of the stack, and then incorporating them into a solution, or customers pulling together different pieces of the stack themselves. The company believes that by building a single integrated solution themselves, it’s going to be naturally easier to use.

“We also find that that’s the size of the company where the tech stack, the sales stack and the marketing stack gets super complex, and they’re spending a lot of time trying to integrate a lot of different point solutions and what we find is having all of this — marketing, CMS, sales underlined by a CRM platform — that gives them visibility that they need to run their entire go to market operations,” she said.

While the lower end of the market where HubSpot is aiming for probably won’t interest larger competitors, especially Salesforce, as they move up in that market to larger companies, they expect to compete with those companies. Rangan says that she believes by providing this new offering, they are giving customers options they didn’t have before.

But she also sees this as a way into companies as they grow, and if HubSpot can catch them earlier in their evolution, they can grow with them and become their vendor of choice, rather than the usual suspects.

“What we find is that companies will start as 100 person company and grow to become a 500 or a 1000 person company, and as they grow up on HubSpot we become their growth suite and we become the core platform of record for them to continue to grow,” she said.


By Ron Miller

Salesforce announces 12,000 new jobs in the next year just weeks after laying off 1000

In a case of bizarre timing, Salesforce announced it was laying off 1000 employees at the end of last month just a day after announcing a monster quarter with over $5 billion in revenue, putting the company on a $20 billion revenue run rate for the first time. The juxtaposition was hard to miss.

Earlier today, Salesforce CEO and co-founder Marc Benioff announced in tweet that the company would be hiring 4000 new employees in the next six months, and 12,000 in the next year. While it seems like a mixed message, it’s probably more about reallocating resources to areas where they are needed more.

While Salesforce wouldn’t comment further on the hirings, the company has obviously been doing well in spite of the pandemic, which has had an impact on customers. In the prior quarter, the company forecasted that it would have slower revenue growth due to giving some customers facing hard times with economic downturn, time to pay their bills.

That’s why it was surprising when the CRM giant announced its earnings in August and it had done so well in spite of all that. While the company was laying off those 1000 people, it did indicate it would give those employees 60 days to find other positions in the company. With these new jobs, assuming they are positions the laid off employees are qualified for, they could have a variety of positions to choose from.

The company had 54,000 employees when it announced the layoffs, which accounted for 1.9% of the workforce. If it ends up adding the 12,000 news jobs in the next year, that would put at approximately 65,000 employees by this time next year.


By Ron Miller

How Salesforce beat its own target to reach $20B run rate ahead of schedule

Salesforce launched in 1999, one of the early adherents to what would eventually be called SaaS and cloud computing. On Tuesday, the company reached a huge milestone when it surpassed $5 billion in revenue, putting the SaaS giant on a $20 billion run rate for the first time.

Salesforce revenue has been on a firm upward trajectory for years now, but when the company reached $10 billion in revenue in November 2017, CEO Marc Benioff set the goal for $20 billion right then and there, and five years hence the company beat that goal pretty easily. Here’s what he said at the time:

“In fact as the fastest growing enterprise software company ever to reach $10 billion, we are now targeting to grow the company organically to more than $20 billion by fiscal year 2022 and we plan to do that to be the fastest enterprise software company ever to get to $20 billion,” Benioff said at the time.

There are lots of elements that have led to that success. As the Salesforce platform evolved, the company has also had an aggressive acquisition strategy, and companies are moving to the cloud faster than ever before. Yet Salesforce has been able to meet that lofty 2017 goal early, while practicing his own unique form of responsible capitalism in the midst of a pandemic.

The platform play

While there are many factors contributing to the company’s revenue growth, one big part of it is the platform. As a platform, it’s not only about providing a set of software tools like CRM, marketing automation and customer service, it’s also giving customers the ability to build solutions to meet their needs on top of that, taking advantage of the work that Salesforce has done to build its own software stack.

Bret Taylor, president and chief operating officer at Salesforce says the platform has played a huge role in the company’s success. “Actually our platform is behind a huge part of Salesforce’s momentum in multiple ways. One, which is one thing we’ve talked a lot about, is just the technology characteristics of the platform, namely that it’s low code and fast time to value,” he
said.

He added, “I would say that these low code platforms and the ability to stand up solutions quickly is more relevant than ever before because our customers are going to have to respond to changes in their business faster than ever before,” he said.

He pointed to nCino, a company built on top of Salesforce that went public last month as a prime example of this. The company was built on Salesforce, sold in the AppExchange marketplace and provides a way for banking customers to do business online, taking advantage of all that Salesforce has built to do that.

The acquisition strategy

Another big contributing factor to the company’s success is that beyond the core CRM product, it brought to the table way back in 1999, it has built a broad set of marketing, sales and service tools and as it has done that, it has acquired many companies along the way to accelerate the product road map.

The biggest of those acquisitions by far was the $15.7 billion Tableau deal, which closed just about a year ago. Taylor sees data fueling the push to digital we are seeing during the pandemic, and Tableau is a key part of that.

“Tableau is so strategic, both from a revenue and also from a technology strategy perspective,” he said. That’s because as companies make the shift to digital, it becomes more important than ever to help them visualize and understand that data in order to understand their customer’s requirements better.

“Fundamentally when you look at what a company needs to do to thrive in an all-digital world, it needs to be able respond to [rapid] changes, which means creating a culture around that data,” he said. This enables companies to respond more quickly to changes like new customer demands or shifts in the supply chain.

“All of that is about data, and I think the reason why Tableau grew so much this past quarter is that I think that the conversation around data when you’re digitizing your entire company and digitizing the entire economy, data is more strategic than it ever was,” he said.

With that purchase, combined with the $6.5 billion MuleSoft acquisition in 2018, the company feels like it has a way to capture and visualize data wherever it lives in the enterprise. “It’s worth noting how complementary MuleSoft and Tableau are together. I think of MuleSoft as unlocking all your enterprise data, whether it’s on a legacy system or a modern system, and Tableau enables us to understand it, and so it’s a really strategic overall value proposition because we can come up with a really complete solution around data,” Taylor said.

Capitalism with some heart

Benioff was happy to point out in an appearance on Mad Money Tuesday that even as he has made charity and volunteerism a core part of his organization, he has still delivered solid returns for his shareholders. He told Mad Money host Jim Cramer, “This is a victory for stakeholder capitalism. It shows you can do good and do well.” This is a statement he has made frequently in the past to show that you can be a good corporate citizen and give back to your community, while still making money.

Those values are what separates the company from the pack says Paul Greenberg, founder and principal analyst at 56 Group and author of CRM at the Speed of Light. “Salesforce’s genius, and a large part of the reason I don’t expect any serious slowdown in that extraordinary growth, is that they manage to align the technology business with corporate social responsibility in a way that makes them stand out from any other company,” Greenberg told TechCrunch.

Yesterday’s numbers come after Q12021 in which the company offered softer guidance as it was giving some of its customers, suffering from the impact of the pandemic, more financial flexibility. As it turns out, that didn’t seem to hurt them, and the guidance for next quarter is looking good too: $5.24 billion to $5.25 billion, up approximately 16% year over year, according to the company.

It’s worth noting that while Benioff pledged no new layoffs for 90 days at the start of the pandemic, with that time now ending, the Wall Street Journal reported yesterday that the company was planning to eliminate 1000 roles out of the organization’s 54,000 total employees, while giving those workers 60 days to find other roles in the company.

Getting to $20 billion

Certainly getting to that $20 billion run rate is significant, as is the speed with which they were able to achieve that goal, but Taylor sees an evolving company, one that is different than the one it was in 2017 when Benioff set that goal.

“I would say the reason we’ve been able to accelerate is through organic [growth], innovation and acquisitions to really build out this vision of a complete customer [picture]. I think it’s more important than ever before,” he said.

He says that when you look at the way the platform has changed, it’s been about bringing multiple customer experience capabilities together under a single umbrella, and giving customers the tools they need to build these out.

“I think we as a company have constantly redefined what customer relationship management means. It’s not just opportunity management for sales teams. It’s customer service, it’s eCommerce, it’s digital marketing, it’s B2B, it’s B2C. It’s. all of the above,” he said.


By Ron Miller

Salesforce confirms it’s laying off around 1000 people in spite of monster quarter

In what felt like strange timing, Salesforce has confirmed a report in yesterday’s Wall Street Journal that it was laying off around 1000 people or approximately 1.9% of the company’s 54,000 strong workforce. This news came in spite of the company reporting a monster quarter on Tuesday in which it passed $5 billion in quarterly revenue for the first time.

In fact, Wall Street was so thrilled with Salesforce’s results, the company’s stock closed up an astonishing 26% yesterday, adding great wealth to the company’s coffers. It seemed hard to reconcile such amazing financial success with this news.

Yet it was actually something that president and chief financial officer Mark Hawkins telegraphed in Tuesday’s earnings call with industry analysts, although he didn’t come right and use the L (layoff) word. Instead he couched that impending change as a reallocation of resources.

And he talked about strategically shifting investments over the next 12-24 months. “This means we’ll be redirecting some of our resources to fuel growth in areas that are no longer as aligned with the business priority will be now deemphasized,” Hawkins said in the call.

This is precisely how a Salesforce spokesperson put it when asked by TechCrunch to confirm the story. “We’re reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer map to our business priorities. For affected employees, we are helping them find the next step in their careers, whether within our company or a new opportunity,” the spokesperson said.

It’s worth noting that earlier this year, Salesforce CEO Marc Benioff pledged there would be no significant layoffs for 90 days.

The 90 day period has long since passed and the company has decided the time is right to make some adjustments to the workforce.

It’s worth contrasting this with the pledge that ServiceNow CEO Bill McDermott made a few weeks after the Benioff tweet, promising not to lay off a single employee for the rest of this year, while also pledging to hire 1000 people worldwide the remainder of this year, while bringing in 360 summer interns.


By Ron Miller