Slintel scores $20M Series A as buyer intelligence tool gains traction

One clear outcome of the pandemic was pushing more people to do their shopping online, and that was as true for B2B as it was for B2C. Knowing which of your B2B customers are most likely to convert puts any sales team ahead of the game. Slintel, a startup providing that kind of data, announced a $20 million Series A today.

The company has attracted some big-name investors with GGV leading the round and Accel, Sequoia and Stellaris also participating. The investment brings the total raised to over $24 million including a $4.2 million seed round from last November.

That’s a quick turnaround from seed to A, and company founder and CEO Deepak Anchala, says that while he had plenty of runway left from the seed round, the demand was such that it seemed prudent to take the A money sooner than he had planned. “So we had enough cash in the bank, but investors came to us and we got a pretty good valuation compared to the previous round, so we decided to take it and use that money to go faster,” Anchala said.

Certainly the market dynamics were working in Slintel’s favor. Without giving revenue details, Anchala said that revenue grew 5x last year in the middle of the worst of the pandemic. He says that meant buyers were spending less time with sales and marketing folks to understand products and more time online researching on their own.

“So what Slintel does as a product is we mine buyer insights. We understand where the buyers are in their journey, what their pain points are, what products they use, what they need and when they need it. So we understand all of this to create a 360 degree view of the buyer that you provide these insights to sales and marketing teams to help them sell better,” he said.

After growing at such a rapid clip last year, the company expected more modest growth this year at perhaps 3x, but with the added investment, he expects to grow faster again. “With the funding we’re actually looking at much bigger numbers. We’re looking at 5x in our revenue this year, and also trying for 4x revenue next year.”

He says that the money gives him the opportunity to improve the product and put more investment into marketing, which he believes will contribute to additional sales. Since the round closed 6 weeks ago, he says that he has increased his advertising budget and is also hopes to attract customers via SEO, free tools on the company website and events.

The company had 45 employees at the time of its seed round in November and has more than doubled that number in the interim to 100 spread out across 10 cities. He expects to double again by this time next year as the company is growing quickly. As a global company with some employees in India and some in the U.S., he intends to be remote first even after offices begin to reopen in different areas. He says that he plans to have company gatherings each quarter to let people gather in person on occasion.


By Ron Miller

Gong going gangbusters, grabs $250M Series E on $7.25B valuation

Gong, the revenue intelligence startup, has been raising capital at a rapid pace, and today the company announced another $250 million on a $7.25 billion valuation, a number that triples its previous valuation from last summer.

Franklin Templeton led today’s festivities with participation from Coatue, Salesforce Ventures, Sequoia, Thrive Capital and Tiger Global. The company raised $200 million last August at a $2.2 billion valuation, and has now raised $584 million, $450 million coming in the last year.

What is making investors open their wallets and pull out such large sums of cash? The company is helping solve a hard problem on how to bring more intelligence to the revenue process. They do this by using artificial intelligence to listen to every customer interaction, whether that’s a sales or service call (or anything else), and use that information to determine valuable information like who is most likely to buy and who is most likely to churn.

It’s been going well and CEO Amit Bendov says the company’s performance really validates the valuation. While he wasn’t ready to discuss specific numbers, he did say that ARR grew 2.3x between Q1 last year and this year, and he says Q2 is on pace to triple ARR.

“The valuation is up about 3x from last summer, but sales are more than 3x. We have high logo customers. [Last year], it was still unclear how COVID was going to impact us. People believed [our business] was going to do well [during the pandemic], but it wasn’t as obvious. Now, it is obvious. And all the […] financials are way better, so from a pure financials [perspective] our multipliers are pretty reasonable for our revenue trajectory,” he said.

With all this growth, the company is adding employees at a rapid pace. It closed the year with 400 people, and is up to around 550 today with a goal of reaching 950 by year end. It has partnered with a consulting firm called ReadySet, which helps companies build diverse and inclusive organizations, and Bendov says they are an equal pay company.

Women represent around 40% of the employees and around 4% are Black, a number he hopes to increase by growing the Atlanta office. In the office in Israel, he has set up employment and training programs to build bridges to the Arab community.

Bendov says he looks forward to meeting his U.S. employees in the coming weeks when he’ll be visiting the Atlanta office for the first time.


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

Box shares rise on report company is exploring sale

Shares of Box, a well-known content-and-collaboration company that went public in 2015, rose today after Reuters reported that the company is exploring a sale. TechCrunch previously discussed rising investor pressure for Box to ignite its share-price after years in the public-market wilderness.

At the close today Box’s equity was worth $23.65 per share, up around 5% from its opening value, but lower than its intraday peak of $26.47, reached after the news broke. The company went public a little over five years ago at $14 per share, only to see its share price rise to around the same level it returned today during its first day’s trading.

Box, famous during its startup phase thanks in part to its ubiquitous CEO and co-founder Aaron Levie, has continued to grow while public, albeit at a declining pace. Dropbox, a long-term rival, has also seen its growth rate decline since going public. Both have stressed rising profitability over revenue expansion in recent quarters.

But the problem that Box has encountered while public, namely hyper-scale platform companies with competing offerings, could also prove a lifeline; Google and Microsoft could be a future home for Levie’s company, after years of the duo challenging Box for deals.

As recently as last week, Box announced a deal for tighter integration with Microsoft Office 365. Given the timing of the release, it was easy to speculate the news could be landing ahead of a potential deal. The Reuters article adds fuel to the possibility.

While we can’t know for sure if the Reuters article is accurate, the possible sale of Box makes sense.

The article indicated that one of the possible acquisition options for Box could be taking it private again via private equity. Perhaps a firm like Vista or Thoma Bravo, two firms that tend to like mature SaaS companies with decent revenue and some issues, could swoop in to buy the struggling SaaS company. By taking companies off the market, reducing investor pressure and giving them room to maneuver, software companies can at times find new vigor.

Consider the case of Marketo, a company that Vista purchased in 2016 for $1.6 billion before turning it around and selling to Adobe in 2018 for $4.75 billion. The end result generated a strong profit for Vista, and a final landing for Marketo as part of a company with a broader platform of marketing tools.

If there are expenses at Box that could be trimmed, or a sales process that could be improved is not clear. But Box’s market value of $3.78 billion could put it within grasp of larger private-equity funds. Or well within the reaches of a host of larger enterprise software companies that might covet its list of business customers, technology, or both.

If the rumors are true, it could be a startling fall from grace for the company, moving from Silicon Valley startup-darling to IPO to sold entity in just six years. While it’s important to note these are just rumors, the writing could be on the wall for the company and it could just be a matter of when and not if.


By Ron Miller

As Slack acquisition rumors swirl, a look at Salesforce’s six biggest deals

The rumors ignited last Thursday that Salesforce had interest in Slack. This morning, CNBC is reporting the deal is all but done and will be announced tomorrow. Chances are, this is going to a big number, but this won’t be Salesforce’s first big acquisition. We thought it would be useful in light of these rumors to look back at the company’s biggest deals.

Salesforce has already surpassed $20 billion in annual revenue, and the company has a history of making a lot of deals to fill in the road map and give it more market lift as it searches for ever more revenue.

The biggest deal by far so far was the $15.7 billion Tableau acquisition last year. The deal gave Salesforce a missing data visualization component and a company with a huge existing market to feed the revenue beast. In an interview in August with TechCrunch, Salesforce president and chief operating officer Bret Taylor (who came to the company in the $750 million Quip deal in 2016), sees Tableau as a key part of the company’s growing success:

“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 customers’ requirements better.”

Next on the Salesforce acquisition hit parade was the $6.5 billion Mulesoft acquisition in 2018. Mulesoft gave Salesforce access to something it didn’t have as an enterprise SaaS company — data locked in silos across the company, even in on-prem applications. The CRM giant could leverage Mulesoft to access data wherever it lived, and when you put the two mega deals together, you could see how you could visualize that data and also give more fuel to its Einstein intelligence layer.

In 2016, the company spent $2.8 billion on Demandware to make a big splash in e-Commerce, a component of the platform that has grown in importance during the pandemic when companies large and small have been forced to move their businesses online. The company was incorporated into the Salesforce behemoth and became known as Commerce Cloud.

In 2013, the company made its first billion dollar acquisition when it bought ExactTarget for $2.5 billion. This represented the first foray into what would become the Marketing Cloud. The purchase gave the company entree into the targeted email marketing business, which again would grow increasingly in importance in 2020 when communicating with customers became crucial during the pandemic.

Last year, just days after closing the Mulesoft acquisition, Salesforce opened its wallet one more time and paid $1.35 billion for ClickSoftware. This one was a nod to the company’s Service cloud, which encompasses both customer service and field service. This acquisition was about the latter, and giving the company access to a bigger body of field service customers.

The final billion deal (until we hear about Slack perhaps) is the $1.33 billion Vlocity acquisition earlier this year. This one was a gift for the core CRM product. Vlocity gave Salesforce several vertical businesses built on the Salesforce platform and was a natural fit for the company. Using Vlocity’s platform, Salesforce could (and did) continue to build on these vertical markets giving it more ammo to sell into specialized markets.

While we can’t know for sure if the Slack deal will happen, it sure feels like it will, and chances are this deal will be even larger than Tableau as the Salesforce acquisition machine keeps chugging along.


By Ron Miller

Adobe expands customer data platform to include B2B sales

The concept of the customer data platform (CDP) is a relatively new one. Up until now, it has focused primarily on pulling data about an individual consumer from a variety of channels into a super record, where in theory you can serve more meaningful content and deliver more customized experiences based on all this detailed knowledge. Adobe announced its intention today to create such a product for business to business (B2B) customers, a key market where this kind of data consolidation had been missing.

Indeed Brian Glover, Adobe’s director of product marketing for Marketo Engage, who has been put in charge of this product, says that these kinds of sales are much more complex and B2B sales and marketing teams are clamoring for a CDP.

“We have spent the last couple of years integrating Marketo Engage across Adobe Experience Cloud, and now what we’re doing is building out the next generation of new and complimentary B2B offerings on the Experience platform, the first of which is the B2B CDP offering,” Glover told me.

He says that they face unique challenges adapting CDP for B2B sales because they typically involve buying groups, meaning you need to customize your messages for different people depending on their role in the process.

An individual consumer usually knows what they want and you can prod them to make a decision and complete the purchase, but a B2B sale is usually longer and more complex involving different levels of procurement. For example, in a technology sale, it may involve the CIO, a group, division or department who will be using the tech, the finance department, legal and others. There may be an RFP and the sales cycle may span months or even years.

Adobe believes this kind of sale should still be able to use the same customized messaging approach you use in an individual sale, perhaps even more so because of the inherent complexity in the process. Yet B2B marketers face the same issues as their B2C counterparts when it comes to having data spread across an organization.

“In B2B that complexity of buying groups and accounts just adds another level to the data management problem because ultimately you need to be able to connect to your customer people data, but you also need to be able to connect the account data too and be able to [bring] the two together,” Glover explained.

By building a more complete picture of each individual in the buying cycle, you can, as Glover puts it, begin to put the bread crumbs together for the entire account. He believes that a CRM isn’t built for this kind of complexity and it requires a specialty tool like a CDP built to support B2B sales and marketing.

Adobe is working with early customers on the product and expects to go into beta before the end of next month with GA some time in the first half of next year.


By Ron Miller

SetSail raises raises $7M to change how sales teams are compensated

Most sales teams earn a commission after a sale closes, but nothing prior to that. Yet there are a variety of signals along the way that indicate the sales process is progressing, and SetSail, a startup from some former Google engineers, is using machine learning to figure out what those signals are, and how to compensate salespeople as they move along the path to a sale, not just after they close the deal.

Today, the startup announced a $7 million investment led by Wing Venture Capital with help from Operator Collective and Team8. Under the terms of the deal, Leyla Seka from Operator will be joining the board. Today’s investment brings the total raised to $11 million, according to the company.

CEO and co-founder Haggai Levi says his company is based on the idea that commission alone is not a good way to measure sales success, and that it is in fact a lagging indicator. “We came up with a different approach. We use machine learning to create progress-based incentives,” Levi explained

To do that they rely on machine learning to discover the signals that are coming from the customer that indicate that the deal is moving forward, and using a points system, companies can begin compensating reps on hitting these milestones, even before the sale closes.

The seeds for the idea behind SetSail were planted years ago when the three founders were working at Google tinkering with ways to motivate sales reps beyond pure commission. From a behavioral perspective, Levi and his co-founders found that reps were taking fewer risks with a pure commission approach and they wanted to find a way to change that. The incremental compensation system achieves that.

“If I’m closing the deal, I’m getting my commission. If I’m not closing the deal, I’m getting nothing. That means from a behavioral point of view, I would take the shortest path to win a deal, and I would take the minimum risk possible. So if there’s a competitive situation I will try to avoid that,” he said.

They look at things like appointments, emails and call transcripts. The signals will vary by customer. One may find an appointment with CIO is a good signal a deal is on the right trajectory, but to avoid having reps gaming the system by filling the CRM with the kinds of positive signals the company is looking for, they only rely on objective data, rather than any kind of self-reporting information from reps themselves.

The team eventually built a system like this inside Google, and in 2018, left to build a solution for the rest of the world that does something similar.

As the company grows, Levi says he is building a diverse team, not only because it’s the right thing to do, but because it simply makes good business sense. “The reality is that we’re building a product for a diverse audience, and if we don’t have a diverse team we would never be able to build the right product,” he explained.

The company’s unique approach to sales compensation is resonating with customers like Dropbox, Lyft and Pendo, who are looking for new ways to motivate sales teams, especially during a pandemic when there may be a longer sales cycle. This kind of system provides a way to compensate sales teams more incrementally and reward positive approaches that have proven to result in sales.


By Ron Miller

Outreach nabs $50M at a $1.33B valuation for software that helps with sales engagement

CRM software has become a critical piece of IT when it comes to getting business done, and today a startup focusing on one specific aspect of that stack — sales automation — is announcing a growth round of funding underscoring its own momentum. Outreach, which has built a popular suite of tools used by salespeople to help identify and reach out to prospects and improve their relationships en route to closing deals, has raised $50 million in a Series F round of funding that values the company at $1.33 billion. 

The funding will be used to continue expanding geographically — headquartered in Seattle, Outreach also has an office in London and wants to do more in Europe and eventually Asia — as well as to invest in product development.

The platform today essentially integrates with a company’s existing CRM, be it Salesforce, or Microsoft’s, or Kustomer, or something else — and provides an SaaS-based set of tools for helping to source and track meetings, have to-hand information on sales targets, and a communications manager that helps with outreach calls and other communication in real-time. It will be investing in more AI around the product, such as its newest product Kaia (an acronym for “knowledge AI assistant”), and it has also hired a new CFO, Melissa Fisher, from Qualys, possibly a sign of where it hopes to go next as a business.

Sands Capital — an investor out of Virginia that also backs the likes of UiPath and DoorDash — is leading the round, Outreach noted, with “strong participation” also from strategic backer Salesforce Ventures. Other investors include Operator Collective (a new backer that launched last year and focuses on B2B) and previous backers Lone Pine Capital, Spark Capital, Meritech Capital Partners, Trinity Ventures, Mayfield, and Sapphire Ventures.

Outreach has raised $289 million to date, and for some more context, this is definitely an upround: the startup was last valued at $1.1 billion when it raised a Series E in April 2019.

The funding comes on the heels of strong growth for the company: more than 4,000 businesses now use its tools, including Adobe, Tableau, DoorDash, Splunk, DocuSign, and SAP, making Outreach the biggest player in a field that also includes Salesloft (which also raised a significant round last year on the heels of Outreach’s), ClariChorus.aiGongConversica, and Afiniti. Its sweet spot has been working with technology-led businesses and that sector continues to expand its sales operations, even as much of the economy has contracted in recent months. 

“You are seeing a cambric explosion of B2B startups happening everywhere,” Manny Medina, CEO and co-founder of Outreach, said in a phone interview this week. “It means that sales roles are being created as we speak.” And that translates to a growing pool of potential customers for Outreach.

It wasn’t always this way.

When Outreach was first founded in 2011 in Seattle, it wasn’t a sales automation company. It was a recruitment startup called GroupTalent working on software to help source and hire talent, aimed at tech companies. That business was rolling along, until it wasn’t: in 2015, the startup found itself with only two months of runway left, with little hope of raising more. 

“We were not hitting our stride, and growth was hard. We didn’t make the numbers in 2014 and then had two months of cash left and no prospects of raising more,” Medina recalled. “So I sat down with my co-founders,” — Gordon Hempton, Andrew Kinzer and Wes Hather, none of whom are at the company anymore — “and we decided to sell our way out of it. We thought that if we generated more meetings we could gain more opportunities to try to sell our recruitment software.

“So we built the engine to do that, and we saw that we were getting 40% reply rates to our own outreaching emails. It was so successful we had a 10x increase in productivity. But we ran out of sales capacity, so we started selling the meetings we had managed to secure with potential talent directly to the tech companies themselves, who would have become their employers.”

That quickly tipped over into a business opportunity of its own. “Companies were saying to us, ‘I don’t want to buy the recruitment software. I need that sales engine!” The company never looked back, and changed its name to work for the pivot.

Fast forward to 2020, and times are challenging in a completely different way, defined as we are by a global health pandemic that affects what we do every day, where we go, how we work, how we interact with people, and much more. 

Medina says that impact of the novel coronavirus has been a significant one for the company and its customers, in part because it fits well with two main types of usage cases that have emerged in the world of sales in the time of COVID-19.

“Older sellers now working from home are accomplished and don’t need to be babysat,” he said, but added but they can’t rely on their traditional touchpoints “like meetings, dinners, and bar mitzvahs” anymore to seal deals. “They don’t have the tools to get over the line. So our product is being called in to help them.”

Another group at the other end of the spectrum, he said, are “younger and less experienced salespeople who don’t have the physical environment [many live in smaller places with roommates] nor experience to sell well alone. For them it’s been challenging not to come into an office because especially in smaller companies, they rely on each other to train, to listen to others on calls to learn how to sell.”

That’s the other scenario where Outreach is finding some traction: they’re using Outreach’s tools as a proxy for physically sitting alongside and learning from more experienced colleagues, and using it as a supplement to learning the ropes in the old way .

Like a lot of sales tools that are powered by AI, Outbrain in part is taking on some of the more mundane jobs of salespeople. But Medina doesn’t believe that this will play out in the “man versus machine” scenario we often ponder when we think about human obsolescence in the face of technological efficiency. In other words, he doesn’t think we’re close to replacing the humans in the mix, even at a time when we’re seeing so many layoffs.

“We are at the early innings,” he said. “There are 6.8 million sales people and we only have north of 100,000 users, not even 2% of the market. There may be a redefinition of the role, but not a reduction.”


By Ingrid Lunden

Sales startup People.ai lays off 18% of staff, raises debt round amid COVID-19 uncertainty

Another startup has turned to downsizing and fund raising to help weather the uncertainty around the economy amid the global coronavirus health pandemic. People.ai, a predictive sales startup backed by Andreessen Horowitz, Iconic, Lightspeed and other investors and last year valued at around $500 million, has laid off around 30 people, working out to about 18% of staff, TechCrunch has learned and confirmed.

Alongside that, the company has quietly raised a debt round in the “tens of millions of dollars” to make strategic investments in new products and potentially other moves.

Oleg Rogynskyy, the founder and CEO, said the layoffs were made not because business has slowed down, but to help the company shore up for whatever may lie ahead.

“We still have several years of runway with what we’ve raised,” he noted (it has raised just under $100 million in equity to date). “But no one knows the length of the downturn, so we wanted to make sure we could sustain the business through it.”

Specifically, the company is reducing its international footprint — now, big European customers that it already has on its books will now be handled from its US offices rather than local outposts — and it is narrowing its scope to focus more on the core verticals that make up the majority of its current customer base.

He gave as an example the financial sector. “We create huge value for financial services industry but have moved the functionality for them out to next year so that we can focus on our currently served industries,” he said.

People.ai’s software tracks the full scope of communication touch points between sales teams and customers, supposedly negating the tedious manual process of activity logging for SDRs. The company’s machine learning tech is also meant to generate the average best way to close a deal – educating customer success teams about where salespeople may be deviating from a proven strategy.

People.ai is one of a number of well-funded tech startups that is making hard choices on business strategy, costs and staffing in the current climate.

Layoffs.fyi, which has been tallying those losing their jobs in the tech industry in the wake of the Coronavirus (it’s based primarily on public reports with a view to providing lists of people for hire), says that as of today, there have been nearly 25,000 people laid off from 258 tech startups and other companies. With companies like Opendoor laying off some 600 people earlier this week, the numbers are ratcheting up quickly: just seven days ago, the number was just over 16,000.

In that context, People.ai cutting 30 may be a smaller increment in the bigger picture (even if for the individuals impacted, it’s just as harsh of an outcome). But it also underscores one of the key business themes of the moment.

Some businesses are getting directly hit by the pandemic — for example, house sales and transportation have all but halted, leaving companies in those categories scrambling to figure out how to get through the coming weeks and months and prepare for a potentially long haul of life and consumer and business behaviour not looking like it did before January.

But other businesses like People.ai, which provides predictive sales tools to help salespeople do their jobs better, is (for now at least) falling into that category of IT is still in demand, perhaps even more than ever in a shrinking economy. In People.ai’s case, software to help salespeople have better sales conversations and ultimately conversions at a time when many customers might not be as quick to buy things, is an idea that sells right now (so to speak).

Rogynskyy noted that more than 90% of customers that are up for renewal this quarter have either renewed or expanded their contracts, and it has been adding on new large customers in recent weeks and months.

The company has also just closed a round of debt funding in the “tens of millions” of dollars to use for strategic investments.

It’s not disclosing the lender right now, but it opted for debt in part because it still has most of its most recent round — $60 million raised in May 2019 led by Iconic — in the bank. Although investors would have been willing to invest in another equity round, given that the company is in a healthy position right now, Rogynskyy said he preferred the debt option to have the money without the dilution that equity rounds bring.

The money will be used for strategic purposes and considering how to develop the product in the current climate. For example, with most people now working from home, and that looking to be a new kind of “normal” in office life (if not all the time, at least more of the time), that presents a new opportunity to develop products tailored for these remote workers.

There have been some M&A moves in tech in the last couple of weeks, and from what we understand People.ai has been approached as well as a possible buyer, target and partner. All of that for now is not something the company is considering, Rogynskyy said. “We’re focused on our own future growth and health and making sure we are here for a long time.”


By Ingrid Lunden

Demodesk scores $2.3M seed for sales-focused online meetings

Demodesk, an early stage startup that wants to change how sales meetings are conducted online, announced a $2.3 million seed investment today.

Investors included GFC, FundersClub, Y Combinator, Kleiner Perkins and an unnamed group of angel investors. The company was a member of the Y Combinator Winter 2019 cohort.

CEO and co-founder Veronika Riederle says that the fact it’s so closely focused on sales separates it from other more general meeting tools like Zoom, WebEx or GoToMeeting. “We are building the first intelligent online meeting tool for customer facing conversations. So that is for inside sales and customer service professionals,” Riederle explained.

One of the key pieces of technology is what Riederle calls, “a unique approach to screen sharing.” Whereas most meeting software involves downloading software to use the tool, Demodesk doesn’t do this. You simply click a link and you’re in. The two parties online are seeing a live screen and each can interact with it. It’s not just a show and tell.

What’s more, in a sales scenario with a slide presentation, the customer sees the same live screen as the salesperson, but while the salesperson can see their presentation notes, the customer cannot.

She said while this could work for any number of scenarios from customer service to IT Help desks, at this stage in the company’s development she wants to concentrate on the sales scenario, then expand the vision over time. The service works on a subscription model with tiered-per user pricing starting at $19 per user per month.

When they got to Y Combinator, the company already had a working product and paying customers, but Riederle says that the experience has helped them grow the business to over 100 customers. “YC was extremely important for us because we immediately got access to an extremely valuable network of founders and potential customers, and also just a base for us to really [develop] the business.

Riderle founded the company with CTO Alex Popp in 2017 in Munich. Prior to this seed round, the founders mostly bootstrapped the company,. With the $2.3 million it should be able to hire more people and begin building out the product further, while investing in sales and marketing to expand its customer base.


By Ron Miller

Showpad, a sales enablement platform for presentations and other collateral, raises $70M

Sales teams have long turned to tech solutions to help improve how they source leads, develop relationships and close deals. Now, one of the startups that helps out at a key point in that trajectory is announcing a round of growth funding to help fuel its own rapid growth. Showpad, a sales enablement platform that lets salespeople source and organise relevant content and other collateral that they use in their deals, has raised a Series D of $70 million.

The funding, which brings the total raised by Showpad to $160 million, is coming in the form of debt and equity. The equity part is co-led by Dawn Capital and Insight Partners, with existing investors Hummingbird Ventures, and Korelya Capital also participating. Silicon Valley Bank is providing debt financing. This is one of the first big investments out of Dawn’s Opportunities Fund that we wrote about last week.

The company is not disclosing its valuation but Pieterjan Bouten, the CEO who co-founded the company with Louis Jonckheere (currently CPO), confirmed that it has doubled since the $50 million Series C that it raised in 2016, with the company growing 90% year-on-year at the moment in terms of revenues.

And as a point of reference, another sales enablement player, Seismic, last December raised a Series E of $100 million at a $1 billion valuation.

Founded in Ghent, Belgium, Showpad today operates across two main headquarters, its original European base and Chicago. The latter was the homebase of LearnCore, a company that Showpad acquired last year that focuses on sales coaching and training, which has been used as a strategic acquisition to expand Showpad’s primary product, a platform that acts as a kind of content management system for sales collateral. (Today, while Chicago is where Showpad builds its go-to market efforts and professional services, Ghent focuses on engineering and product, he said.) As it happens, Chicago is also the headquarters of Seismic.

As Bouten sees it, Showpad is part of what he considers to be the fourth pillar of the technology marketing stack: storage (the cloud services where you keep all your data), CRM, marketing automation and sales enablement, where Showpad sits.

While the first three are key to helping to manage a salesperson’s activities and work, the fourth is a crucial one for helping to make sure a salesperson can do his or her job more effectively. Traditionally a lot of the content that salespeople used — presentations, white papers, other materials — to help make their cases and close their deals would be managed offline and directly by individual salespeople. Showpad has taken some of that process and made it digital, which means that now teams of salespeople can more effectively share materials amongst each other; and interestingly the material and its link to successful sales becomes part of how Showpad “learns” what works and what doesn’t.

That, in turn, helps build its own artificial intelligence algorithms, to help suggest the best materials for a particular sales effort either to someone else in that team, or to other salespeople using the platform.

“To date there has been enormous innovation in automating the marketing and sales workflow. However, in the end, sales comes down to one person selling to another,” said Norman Fiore, General Partner at Dawn Capital and member of the Showpad Board, in a statement. “Historically, this has been an offline process that has been wildly inconsistent and opaque. Showpad’s suite of products succeeds in bringing this process online for the first time with data-rich feedback loops on the effectiveness of teams, managers, salespeople and even individual pieces of sales content.”

This is a crowded area of the market with a number of standalone companies building sales enablement solutions, but also other companies within the sales stack also adding on enablement as a value-added service. For now, though, Bouten notes that these are more strategic partners than competitors. Salesforce is a partner, he says, and “We integrate with Salesloft to make sure sure emails that are sent out are using the right content. We become the single source of truth but also are being used for outreach.”

Today, the company has around 1,200 enterprise customers, including Johnson & Johnson, GE Healthcare, Bridgestone, Honeywell, and Merck, and the plan going forward will be to continue building out the services that it offers around its sales enablement software.

“You can equip sales people with the best content, but if they are not trained and coached in the right way, it goes nowhere,” he said.

 


By Ingrid Lunden

Clari platform aims to unify go-to-market operations data

Clari started out as a company that wanted to give sales teams more information about their sales process than could be found in the CRM database. Today, the company announced a much broader platform, one that can provide insight across sales, marketing and customer service to give a more unified view of a company’s go-to-market operations, all enhanced by AI.

Company co-founder and CEO Andy Byrne says this involves pulling together a variety of data and giving each department the insight to improve their mission. “We are analyzing large volumes of data found in various revenue systems — sales, marketing, customer success, etc. — and we’re using that data to provide a new platform that’s connecting up all of the different revenue departments,” Byrne told TechCrunch.

For sales that would mean driving more revenue. For marketing it would it involve more targeted plans to drive more sales, and for customer success it would be about increasing customer retention and reducing churn.

Screenshot: Clari

The company’s original idea when it launched in 2012 was looking at a range of data that touched the sales process such as email, calendars and the CRM database to bring together a broader view of sales than you could get by looking at the basic customer data stored in the CRM alone. The Clari data could tell the reps things like which deals would be most likely to close and which ones were at risk.

“We were taking all of these signals that had been historically disconnected from each other and we were connecting it all into a new interface for sales teams that’s very different than a CRM,” Byrne said.

Over time, that involved using AI and machine learning to make connections in the data that humans might not have been seeing. The company also found that customers were using the product to look at processes adjacent to sales, and they decided to formalize that and build connectors to relevant parts of the go-to-market system like marketing automation tools from Marketo or Eloqua and customer tools such as Dialpad, Gong.io and Salesloft.

With Clari’s approach, companies can get a unified view without manually pulling all this data together. The goal is to provide customers with a broad view of the to-to-market operation that isn’t possible looking at siloed systems.

The company has experienced tremendous growth over the last year leaping from 80 customers to 250. These include Okta and Alteryx, two companies that went public in recent years. Clari is based in the Bay area and has around 120 employees. It has raised over $60M. The most recent round was a $35 million Series C last May led by Tenaya Capital.


By Ron Miller

Seismic scores $100 million Series E investment on $1 billion valuation

Seismic has been helping companies create and manage their sales and marketing collateral since 2010. Today the company announced a $100 million Series E investment on a $1 billion valuation.

The round was led by Lightspeed Venture Partners and T Rowe Price. Existing investors General Atlantic, JMI Equity and Jackson Square Ventures also participated in the round. The company has now raised $179 million since inception.

What is attracting this level of investment is Seismic’s sales enablement tools, a kind of content management for sales and marketing. “What we’re trying to do with our technology is to help marketers who are striving to create the right content to help the sellers, and help sellers navigate all of the content out there and put together the right pieces and the right materials that are going to help them move the sales cycle along,” Seismic CEO and co-founder Doug Winter explained.

The inclusion of an investor like T Rowe Price often is a signal of IPO ambitions, and Winter acknowledged the connection, while pointing out that T Rowe Price is also a customer. “We do have a goal to be public-ready as a company that we are aiming for. We are the leader of the space, and we do feel like striving to be a public company and to be the first one in our space to go public. It’s a goal we are going to push for,” Winter told TechCrunch.

But he says taking this investment is more about taking advantage of market opportunity. The money gives Seismic the ability to expand to meet growing sales. Today, the company has more than 600 customers averaging more than $200,000 in spending, according to Winter.

The company acquired the Savo Group in May to help expand its market position. Seismic is based in San Diego with offices in Boston and Chicago (from the acquisition). It also opened offices in the UK and Australia earlier this year and plans further international with the new investment.  The company currently has more than 600 employees including 185 engineers and project managers, and plans to keep hiring as it puts this money to work.


By Ron Miller

Clari raises $35M for its AI-based sales platform, expands into marketing and supply chain management

Clari — a startup that has built a predictive sales tool that provides just-in-time assistance for sales people close deals and for those who work in the bigger chain of command to monitor the progress of the sales operation — is capitalising on the big boom in interest for all things AI in the business world. The company is today announcing that it has closed a Series B round of $35 million, funding that it will be using to build out its own sales and marketing team and expand its platform capabilities.

The round was led by Tenaya Capital, the VC fund that started its life as a part of Lehman Brothers, along with participation from other new investors Thomvest Ventures and Blue Cloud Ventures, and previous investors Sequoia Capital, Bain Capital Ventures and Northgate Capital. It brings the total raised by Clari to $61 million.

Andy Byrne, the founder and CEO who is a repeat entrepreneur and has been involved in several exits, said the funding closed “definitely at an upround, and much bigger than we thought it was going to be,” but declined to give a number. 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.

The funding comes at an interesting time for AI startups, particularly those aimed at enterprise IT.

When Clari first emerged from stealth in April 2014, the idea of applying AI to solve pain points for non-technical people in organizations was a fairly nascent and still-novel concept.

Fast forward to today, things have moved very fast, as is often the case in the tech world. Now, you can’t seem to move for all the enterprise IT startups that are either using or claiming to use AI in their solutions. There are so many startup hopefuls, and so many organizations looking for the best way to use AI to improve their business and operations, that there are even startups being founded to manage that opportunity of connecting the two pieces together, such as Element AI.

“I’m not saying we were clairvoyant for targeting the idea of using AI for sales in 2013,” Byrne said. “There has been a large macro trend and if you happen to be a small company that is along for the ride. When we first launched, we had this thesis about AI for sales. Now it’s not the number three or two priority for sales teams, it’s number one. It’s everywhere. Businesses want to invest and spend more money on AI and making things more efficient.”

Clari says that its customer base has tripled in the last year, with customers including Adobe, Audi, Check Point Software, Equinix, Epicor Software Corporation, GE, and PerkinElmer.

Clari’s approach for using AI for the sales team comes in two main areas. First, the company’s system is aimed to reduce some of the busywork that salespeople have in maintaining and updating files on people, by bringing in a number of different data sources and using them to provide composite pictures of target companies that salespeople might have had to otherwise compile with more manual means. Second, Clari puts a lot of focus on its “Opportunity-to-Close (OTC) solutions” — a type of risk-analysis for salespeople and their managers to help them figure out which leads and strategic directly would be the most likely to produce sales.

“Working with Clari since inception, we have been impressed with its growth and strong execution,” said Aaref Hilaly, Partner at Sequoia Capital, in a statement. “Clari has fast become indispensable to many of the most successful sales teams, giving them visibility into their most important metrics: rep productivity, pipeline health, and forecast accuracy.”

Indeed, risk and outcome is a smart area to be in: using AI to help model this is a key area of focus in enterprise IT at the moment, according to feedback I’ve had from a number of others in the enterprise world.

“If you have 150 opportunities presented to you as a salesperson, how do you choose 10 where you should spend your time?” Byrne asked. “A more traditional CRM platform has never showcased your risk and outcomes.”

While up to now Clari has focused on providing intelligence on what is already in a company’s account database, the next step, Byrne noted, is to draw on data from around the web, providing completely new business leads to the sales team.

When we last covered a funding round for Clari, we noted that the company’s laser focus on sales was something that made the company stand out for investors: nailing one aspect of a business’s operations without distractions from other parts of the organization and what it could be spending time solving elsewhere (in fact, when you think about it, the very goal that Clari has been aiming to achieve for salespeople through its product).

But four years on, the company is now widening that ambition. It’s applying its AI engine now to help marketeers weigh up the best opportunities for reaching out to prospective customers; and interestingly it sounds like it will also be applying its engine to product development and specifically supply chain management.

Byrne described one customer, a medical device maker, that was encountering “inefficiencies” around what they should build and when to meet market demand. “Now that they can predict and forecast order bookings and revenue targets, and what’s happened is that their supply chain has become more efficient,” he said. “It is great example of how our AI is now being expanded.”

“The Clari team has leveraged its deep AI expertise to build a unique platform that surfaces predictive insights for sales reps, managers, and execs during the opportunity-to-close process,” said Brian Paul, MD at Tenaya Capital, in a statement. “We see a massive opportunity for AI to transform how sales teams operate which is clearly validated by Clari’s customers and the impressive growth the team has achieved.”