Apr
27
2021
--

With Workfront, Adobe combines automated workflow with customer experience

Five months ago, Adobe purchased (for $1.5 billion) Workfront, a company that helps build marketing department workflows. Today the company is officially announcing how it intends to use it. As marketing executives try to balance mapping strategy to the creative process while building customized experiences, a marketing workflow tool would fit neatly into Adobe Experience Manager (AEM), and that’s where it has landed.

Alex Shootman, who was CEO at Workfront and is now VP and GM of Adobe Workfront, told me they see the tool as the system of record for the marketing department inside of AEM. While there is more than a hint of marketing in that explanation, the data from Workfront’s workflows acts as a record of the creative process.

As part of Adobe, the company has built hooks into Experience Manager and Creative Cloud to enable marketing’s creative work to move through an organized and auditable process, leaving a data trail that lets management know exactly what happened — a marketing system of record.

Shootman says having this system of record in place allows marketing teams to do several things. For starters, it lets them connect strategy to execution. “If you think about a CMO, he or she and their team is developing the key priorities for decisions for the year or for the quarter [and this helps them] take those key priorities and make sure that they are driving the activities within the marketing organization,” he said.

He says that involves connecting the people, processes and data within marketing into a single system where teams can iteratively plan on the work as changes arise. That’s where Workfront comes into play.

Brent Leary, lead analyst at CRM Essentials, says the approach makes a great deal of sense. “Creating enough personalized content at scale to stay connected with customers as their needs evolve over time is a team sport. That calls for tighter collaboration throughout the creation process, and Workfront within the AEM brings a sophisticated project management capability to the creative process,” Leary said.

During the pandemic, that became imperative as the majority of sales moved online. That increased the need for speed and agility. Having this workflow tool in place inside the Adobe Experience Manager means it’s not only allowing marketing to build customized experiences for its customers, it also enables them to automate the workflows behind those customizations.

The way this could work in practice is a marketing team creates a campaign and maps it out in Workfront. From there, creatives get assigned tasks and these tasks show up in Creative Cloud. When they complete the assignment, it automatically goes back into Workfront where it will be reviewed, eventually get approved and get published to the Digital Asset Management (DAM) tool where it will be available for use by the entire marketing team.

When it comes to acquisitions, it’s hard to know how well they’ll turn out, but Workfront seems particularly well suited to the Adobe ecosystem, a tool that can help bring a missing workflow automation component to the entire creative process, while allowing marketing execs to see exactly how their strategy played out.

Apr
21
2021
--

4 ways martech will shift in 2021

The tidal wave of growth is upon us — an unprecedented economic boom that will manifest later this year, bringing significant investments, acquisitions and customer growth. But most tech companies and startups are not adequately prepared to capitalize on the opportunity that lies ahead.

Here’s how marketing in tech will shift — and what you need to know to reach more customers and accelerate growth in 2021.

First and foremost, differentiation is going to be imperative. It’s already hard enough to stand out and get noticed, and it’s about to get much more difficult as new companies emerge and investments and budgets balloon in the latter half of the year. Virtually all major companies are increasing budgets to pre-pandemic levels, but will delay those investments until the second half of the year. This will result in an increased intensity of competition that will drown out any undifferentiated players.

The second half of 2021 will bring incredible growth, the likes of which we haven’t seen in a long time.

Additionally, tech companies need to be mindful not to ignore the most important part of the ecosystem: people. Technology will only take you so far, and it’s not going to be enough to survive the competition. Marketing is about people, including your customers, team, partners, investors and the broader community.

Understanding who your people are and how you can use their help to build a strong foundation and drive exponential growth is essential.

Tactically, the most successful tech companies will embrace video and experimentation in their marketing — two components that will catapult them ahead of the competition.

Ignoring these predictions, backed by empirical evidence, will be detrimental and devastating. Fasten your seatbelts: 2021 is going to be a turbocharged year of growth opportunities for marketing in tech.

Differentiation is crucial

The explosion of tech companies and startups seeking to be the next big thing isn’t over yet. However, many of them are indistinguishable from each other and lack a compelling value proposition. Just one look at the websites of new and existing tech companies will reveal a proliferation of buzzwords and conceptual illustrations, leaving them all looking and sounding alike.

The tech companies that succeed are those that embrace one of the fundamentals of effective marketing — positioning.

In the ’80s, Al Ries and Jack Trout published “Positioning: The Battle For Your Mind” and coined the term, which documented the best-known approach to standing out in a noisy marketplace. As the market heats up, companies will realize the need to sharpen their positioning and dial in their focus to break through the noise.

To get attention and build traction, companies need to establish a position they can own. The mashup method — “Netflix but for coding lessons” — is not real positioning; it’s simply a lazy gimmick.

It is imperative to identify who your ideal customer is and not just who could use your product. Focusing on a segment of the market rather than the whole is, perhaps counterintuitively, the most effective approach to capturing the larger market.

Apr
21
2021
--

ActiveCampaign raises $240M at a $3B valuation as marketing and sales automation come into focus for SMBs

As businesses continue to adopt new digital tools to get their names out into the world, a startup that’s built a sales and marketing platform specifically for small and medium businesses is announcing a big round of funding. ActiveCampaign, which has built what it describes as a “customer experience automation” platform — providing a way not just to run digital campaigns but to follow up aspects of them automatically to make sales and marketing work more efficiently — has closed a $240 million round of funding. The Series C values the Chicago startup at over $3 billion.

The round is being led by a new, big-name investor, Tiger Global, with participation from another new backer Dragoneer, along with Susquehanna Growth Equity and Silversmith Capital Partners, which had both invested previously.

This funding round represents a huge leap for ActiveCampaign. It was only in January 2020 that it raised $100 million, and before that, the company, which was founded in 2003, had only raised $20 million.

But as we have seen in many other ways, the pandemic resulted in a surge of interest among businesses to do more — a lot more — online than ever before, not least because so many people were spending more time at home, carrying out their consumer lives over the internet. That led to ActiveCampaign growing to a customer base of 145,000 customers, up from 90,000 16 months ago.

That points not just to the company already growing at a decent clip before the pandemic, but how it capitalized on that at a time when companies were looking for more tools to run their businesses in the new world.

The growth was not about ActiveCampaign throwing more money into business development, founder and CEO Jason VandeBoom said in an interview. “It was the network effect of people finding success. Even today, organic word of mouth is our primary driver.”

The company’s tools fit into a wider overall trend in the world of business: automation, built on the back of new, cloud-based technology, is being adopted to carry out some of the less interesting and repetitive aspects of running a business.

In the case of sales, an example of what ActiveCampaign might provide is a way for an e-commerce business to identify when a logged-in customer (that is, a user who has an account already and is signed in) might have ‘abandoned’ a visit to a site before buying a product that had already been searched for, or clicked on, or even added to a cart. In these cases, it sends an email to customers reminding them of those items, with options for other follow-ups, in the event that the choice was due to being distracted or having second thoughts that might be persuaded otherwise.

Users can opt-out of these, but they can be useful given the genuine distraction exercise that is browsing online — with all of the unrelated notifications, plus other options for considering a purchase. Tellingly, ActiveCampaign integrates with 850 different apps, a measure of just how fragmented the online landscape is, and also how many ways your attention might be distracted, or snagged depending on your perspective.

Abandoned carts can cost a company, in aggregate, a lot of lost revenue, yet chasing those down is not the kind of task that a company would typically assign to a valuable employee to carry out. And that’s where companies like ActiveCampaign come in.

This, plus some 500 other actions like it around sales and marketing campaigns — VandeBoom calls them “recipes” — some of which have been contributed by ActiveCampaign’s own users, form the basis of the company’s platform.

The marketing and sales automation market is estimated to be worth billions of dollars today, and, thanks to the rise of social media and simply more places to spend time online (and more time spent online) is expected to be worth more than $8 billion by 2027, so it’s going after a lucrative and much-used tool for doing business online. (And others are looking at it as well, of couse, including newer entrants like Shopify coming from a different angle to the same problem. Shopify today is a valued partner of the company, VandeBoom said when I asked him about it.)

That gives ActiveCampaign not just a big opportunity to continue targeting, but possibly also makes it a target itself, for an acquisition.

The other key aspect of ActiveCampaign’s growth that is worth watching is related to its customers. While the company has a client base that includes recognized names like the Museum of Science and Industry based out of ActiveCampaign’s hometown, it also has some 145,000 others across nearly 200 countries with a big emphasis on small and medium businesses.

SMBs form the vast majority of all businesses globally, collectively representing a huge win for tech companies that can capture them as customers. But traditionally, they have proven to be a challenging sector, given that they cover so many different verticals, are in many ways more price-sensitive than their enterprise-sized counterparts, among other factors.

So for ActiveCampaign to have found successful traction with SMBs — including with pricing that works for many of them (using it starts at $9 for accounts with less than 500 contacts) — is likely another reason why the startup has caught the eye of investors keen to back winning horses.

While the company did not need to raise money, VandeBoom said he “saw it as an opportunity to bring in more partners, saying that investors like how it purposely went after the idea of customer experience not on vertical or locale.”

“We’ve been lucky enough to have a front row seat on this journey from early on – and it’s been pretty breathtaking,” said Todd MacLean, managing partner, Silversmith Capital Partners, in a statement to TechCrunch. “Even compared to other great growth companies, the momentum and capital efficiency are rare.  But Jason is a rare entrepreneur and has built a team in his image.  While there’s lots left to do, we believe we’ve only scratched the surface of this market opportunity and are excited to double-down on Jason and his vision.”

Apr
08
2021
--

Alyce, an AI-based personalised corporate gifting startup, raises $30M

Swag has a long and patchy history in the world of business. For every hip pair of plaid socks, there are five t-shirts you may never wear, an itchy scarf, a notepad your kids might use, and an ugly mug; and most of all, likely thousands of dollars and lots of time invested to make those presents a reality. Now, a startup that has built a service to rethink the concept behind corporate gifts and make them more effective is today announcing a round of funding to continue expanding its business — and one sign that it may be on to something is its progress so far.

Alyce, a Boston startup that has built an AI platform that plugs into various other apps that you might use to interact and track your relationships with others in your working life — sales prospects, business partners, colleagues — and then uses the information to personalise gift recommendations for those people, has raised $30 million, a Series B that it will be using to continue building out its platform, signing up more users, and hiring more people for its team.

This round is being led by General Catalyst, with Boston Seed Capital, Golden Ventures, Manifest, Morningside and Victress Captial — all previous backers — also participating.

Alyce says that it has grown 300% year-over-year between 2019 and 2020, tackling a corporate gifting and promotional items industry that ASI Market Research estimates is worth around $24.7 billion annually. Its customers today include Adobe’s Marketo, G2, Lenovo, Wex, Invision, DialPad, GrubHub, and 6Sense.

As with so many other apps and services that aim at productivity and people management, Alyce notes that this year of working remotely — which has tested many a relationship and job function, led to massive inbound and outbound digital activity (the screen is where everything gets played out now), and frankly burned a lot of us out — has given it also a new kind of relevance.

“As everyone was flooded with spam last year unsubscribing soared,” Greg Segall, founder and CEO of Alyce, said in a statement. “When a prospect opts out, that’s forever. It’s clear that both brands and customers crave the same thing – a much more purposeful and relatable way to engage.”

Alyce’s contribution to more quality engagement comes in the form of AI-fueled personalization.

Linking up with the other tools people typically use to track their communications with people — they include Marketo, Salesforce, Vidyard and Google’s email and calendar apps — the system has been built with algorithms that read details from those apps to construct some details about the preferences and tastes of the intended gift recipient. It then uses that to come up with a list of items that might appeal to that person from a wider list that it has compiled, with some 10,000 items in all. (And yes, these can also include more traditional corporate swag items like those socks or mugs.) Then, instead of sending an actual gift, “Swag Select”, as Alyce’s service is called, sends a gift code that lets the person redeem with his or her own choice from a personalised, more narrowed-down list of items.

Alyce itself doesn’t actually hold or distribute the presents: it connects up with third parties that send these out. (It prices its service based on how much it is used, and how many more tools a user might want to have to personalise and send out gifts.)

Yes, you might argue that a lot of this sounds actually very impersonal — the gift giver is not directly involved in the selection or sending of a present at all, which instead is “selected” by way of AI. Essentially, this is a variation of the personalization and recommendation technology that has been built to serve ads, suggest products to you on e-commerce sites, and more.

But on the other hand, it’s an interesting solution to the problem of trying to figure out what to get someone, which can be a challenge when you really know a person, and even harder when you don’t, while at the same time helping to create and fulfill a gesture that, at the end of the day, is about being thoughtful of them, not really the gift itself.

(You could also argue, I think, that since the gift lists are based on a person’s observations about the recipient, there is in fact some personal touches here, even if they have been run through an algorithmic mill before getting to you.)

And ultimately, the aim of these gifts is to say “thank you for this work relationship, which I appreciate”, or “please buy more printer paper from me” — not “I’m sorry for being rude to you at dinner last night.” Although… if this works as it should, maybe there might well be an opportunity to extending the model to more use cases, for example brands looking for ways to change up their direct mail marketing campaigns, or yes, people who want to patch things up after a spat the night before.

Notably, for General Catalyst, it’s interested indeed in the bigger gifting category, pointing to the potential of how this service could be scaled in the future.

“At General Catalyst, we are proud to lead the latest round of funding for Alyce as the company has reimagined the gifting category with technology and impact. The ability to deliver products and experiences that both the giver and recipient feel good about is incredibly powerful,” said Larry Bohn, Managing Director at General Catalyst, in a statement.

Jan
27
2021
--

Following acquisition, Episerver rebrands as Optimizely

After acquiring Optimizely last fall, content management company Episerver is adopting the Optimizely name for the entire organization.

CEO Alex Atzberger told me that the company will be rolling out new branding in the next coming months, as well as renaming its entire product suite to reflect the Optimizely brand.

“We believe it’s no longer just about personalizing the experience or driving recommendations,” Atzberger said. “The brand and word Optimizely really signifies optimal performance. Companies today of any size, any scale [need to be] much more sophisticated in terms of how they digitally connect with their customers. It’s a never-ending story.”

At the same time, he emphasized that Episerver is making the change from “a position of strength,” with the combined company seeing double-digit revenue growth last year and going live with more than 250 new customers.

Asked whether adopting the Optimizely name was always part of the post-acquisition plan, Atzberger replied, “When we acquired Optimizely, we knew that we would be acquiring not just a great product, not just a great customer base, but also acquiring a very well-known brand. We had not yet decided on [rebranding], but it was certainly something that, for me, was part of the consideration.”

In addition to announcing the new company name, Episerver/Optimizely is also announcing a new platform that it’s calling Optimization-as-a-Service, which integrates aspects of Optimizely and Episerver products to offer web targeting, testing and recommendations. As Atzberger put it, this new platform allows customers to determine “who to show something to, what content to show and how to actually show this content.”

Jan
21
2021
--

Soci raises $80M for its localized marketing platform

Soci, a startup focused on what it calls “localized marketing,” is announcing that it has raised $80 million in Series D funding.

National and global companies like Ace Hardware, Anytime Fitness, The Hertz Corporation and Nekter Juice Bar use Soci (pronounced soh-shee) to coordinate individual stores as they promote themselves through search, social media, review platforms and ad campaigns. Soci said that in 2020, it brought on more than 100 new customers, representing nearly 30,000 new locations.

Co-founder and CEO Afif Khoury told me that the pandemic was a crucial moment for the platform, with so many businesses “scrambling to find a real solution to connect with local audiences.”

One of the key advantages to Soci’s approach, Khoury said, is to allow the national marketing team to share content and assets so that each location stays true to the “national corporate personality,” while also allowing each location to express  a “local personality.” During the pandemic, businesses could share basic information about “who’s open, who’s not” while also “commiserating and expressing the humanity that’s often missing element from marketing nationally.”

“The result there was businesses that had to close, when they had their grand reopenings, people wanted to support that business,” he said. “It created a sort of bond that hopefully lasts forever.”

Khoury also emphasized that Soci has built a comprehensive platform that businesses can use to manage all their localized marketing, because “nobody wants to have seven different logins to seven different systems, especially at the local level.”

The new funding, he said, will allow Soci to make the platform even more comprehensive, both through acquisitions and integrations: “We want to connect into the CRM, the point-of-sale, the rewards program and take all that data and marry that to our search, social, reviews data to start to build a profile on a customer.”

Soci has now raised a total of $110 million. The Series D was led by JMI Equity, with participation from Ankona Capital, Seismic CEO Doug Winter and Khoury himself.

“All signs point to an equally difficult first few months of this year for restaurants and other businesses dependent on their communities,” said JMI’s Suken Vakil in a statement. “This means there will be a continued need for localized marketing campaigns that align with national brand values but also provide for community-specific messaging. SOCi’s multi-location functionality positions it as a market leader that currently stands far beyond its competitors as the must-have platform solution for multi-location franchises/brands.”

Nov
30
2020
--

Vista acquires Gainsight for $1.1B, adding to its growing enterprise arsenal

Vista Equity Partners hasn’t been shy about scooping up enterprise companies over the years, and today it added to a growing portfolio with its purchase of Gainsight. The company’s software helps clients with customer success, meaning it helps create a positive customer experience when they interact with your brand, making them more likely to come back and recommend you to others. Sources pegged the price tag at $1.1 billion.

As you might expect, both parties are putting a happy face on the deal, talking about how they can work together to grow Gainsight further. Certainly, other companies like Ping Identity seem to have benefited from joining forces with Vista. Being part of a well-capitalized firm allowed them to make some strategic investments along the way to eventually going public last year.

Gainsight and Vista are certainly hoping for a similar outcome in this case. Monti Saroya, co-head of the Vista Flagship Fund and senior managing director at the firm, sees a company with a lot of potential that could expand and grow with help from Vista’s consulting arm, which helps portfolio companies with different aspects of their business like sales, marketing and operations.

“We are excited to partner with the Gainsight team in its next phase of growth, helping the company to expand the category it has created and deliver even more solutions that drive retention and growth to businesses across the globe,” Saroya said in a statement.

Gainsight CEO Nick Mehta likes the idea of being part of Vista’s portfolio of enterprise companies, many of whom are using his company’s products.

“We’ve known Vista for years, since 24 of their portfolio companies use Gainsight. We’ve seen Gainsight clients like JAMF and Ping Identity partner with Vista and then go public. We believe we are just getting started with customer success, so we wanted the right partner for the long term and we’re excited to work with Vista on the next phase of our journey,” Mehta told TechCrunch.

Brent Leary, principle analyst at CRM Essentials, who covers the sales and marketing space, says that it appears that Vista is piecing together a sales and marketing platform that it could flip or go public in a few years.

“It’s not only the power that’s in the platform, it’s also the money. And Vista seems to be piecing together an engagement platform based on the acquisitions of Gainsight, Pipedrive and even last year’s Acquia purchase. Vista isn’t afraid to spend big money, if they can make even bigger money in a couple years if they can make these pieces fit together,” Leary told TechCrunch.

While Gainsight exits as a unicorn, the deal might not have been the outcome it was looking for. The company raised more than $187 million, according to PitchBook data, though its fundraising had slowed in recent years. Gainsight raised $50 million in April of 2017 at a post-money valuation of $515 million, again per PitchBook. In July of 2018 it added $25 million to its coffers, and the final entry was a small debt investment raised in 2019.

It could be that the startup saw its growth slow down, leaving it somewhere between ready for new venture investment and profitability. That’s a gap that PE shops like Vista look for, write a check, shake up a company and hopefully exit at an elevated price.

Gainsight hired a new chief revenue officer last month, notably. Per Forbes, the company was on track to reach “about” $100 million ARR by the end of 2020, giving it a revenue multiple of around 11x in the deal. That’s under current market norms, which could imply that Gainsight had either lower gross margins than comparable companies, or as previously noted, that its growth had slowed.

A $1.1 billion exit is never something to bemoan — and every startup wants to become a unicorn — but Gainsight and Mehta are well known, and we were hoping for the details only an S-1 could deliver. Perhaps one day with Vista’s help that could happen.

Nov
30
2020
--

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 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 entrée 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-dollar 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.

Nov
24
2020
--

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 complementary 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.

Nov
18
2020
--

Grouparoo snares $3M seed to build open source customer data integration framework

Creating a great customer experience requires a lot of data from a variety of sources, and pulling that disparate data together has captured the attention of companies and big and small from Salesforce and Adobe to Segment and Klaviyo. Today, Grouparoo, a new startup from three industry vets is the next company up with an open source framework designed to make it easier for developers to access and make use of customer data.

The company announced a $3 million seed investment led by Eniac Ventures and Fuel Capital with participation from Hack VC, Liquid2, SCM Advisors and several unnamed angel investors.

Grouparoo CEO and co-founder Brian Leonard says that his company has created this open source customer data framework based on his own experience and difficulty getting customer data into the various tools he has been using since he was technical founder at TaskRabbit in 2008.

“We’re an open source data framework that helps companies easily sync their customer data from their database or warehouse to all of the SaaS tools where they need it. [After you] install it, you teach it about your customers, like what properties are important in each of those profiles. And then it allows you to segment them into the groups that matter,” Leonard explained.

This could be something like high earners in San Francisco along with names and addresses. Grouparoo can grab this data and transfer it to a marketing tool like Marketo or Zendesk and these tools could then learn who your VIP customers are.

For now the company is just the three founders Leonard, CTO Evan Tahler and COO Andy Jih, and while he wasn’t ready to commit to how many people he might hire in the next 12 months, he sees it being less than 10. At this early stage, the three co-founders have already been considering how to build a diverse and inclusive company, something he helped contribute to while he was at TaskRabbit.

“So, coming from [what we built at TaskRabbit] and starting something new, it’s important to all three of us to start [building a diverse company] from the beginning, and especially combined with this notion that we’re building something open source. We’ve been talking a lot about being open about our culture and what’s important to us,” he said.

TaskRabbit also comes into play in their investment where Fuel GP Leah Solivan was also founder of TaskRabbit. “Grouparoo is solving a real and acute issue that companies grapple with as they scale — giving every member of the team access to the data they need to drive revenue, acquire customers and improve real-time decision making. Brian, Andy and Evan have developed an elegant solution to an issue we experienced firsthand at TaskRabbit,” she said.

For now the company is taking an open source approach to build a community around the tool. It is still pre-revenue, but the plan is to find a way to build something commercial on top of the open source tooling. They are considering an open core license where they can add features or support or offer the tool as a service. Leonard says that is something they intend to work out in 2021.

Powered by WordPress | Theme: Aeros 2.0 by TheBuckmaker.com