Outreach Secures $65 Million In Series D Funding To Increase Revenue Team Productivity And Return
More Than 2,400 Companies Use Outreach’s Machine Learning Technology to Generate High-Quality Leads, Close Deals and Retain Customers
Outreach, the leading Customer Engagement Platform, has secured $65 millionin Series D financing, more than doubling the company’s valuation over its Series C round. The round was led by Spark Capital and includes investment from Sapphire Ventures as well as from existing investors DFJ Growth, Four Rivers Group, Mayfield, MHS Capital, Microsoft Ventures and Trinity Ventures, bringing Outreach’s total funding to $125 million. The funding represents another major milestone for the company, following a stellar year in 2017 that saw a doubling of overall customers and more than 100 percent revenue growth.
Outreach’s Customer Engagement Platform provides the entire revenue team – from sales development representative to account executive to customer success manager – with a system for managing and automating interactions throughout the customer lifecycle. Outreach also records data about each interaction and uses analytics and machine learning to surface insights and recommendations that drive increased efficiency and effectiveness.
“The customer engagement category is experiencing explosive growth, due in large part to high rates of usage, a rarity for enterprise software which is often used as a data repository or even worse, purchased and forgotten,” said Manny Medina, CEO and co-founder of Outreach.
Manny added, “Our north star isn’t number of customers, it’s number of Weekly Active Users. This metric is proof we have created a technology that not only drives revenue, but also is viewed as indispensable to every member of the revenue team.”
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Outreach’s new financing will be used to accelerate product development, with a specific focus on machine learning and extending the platform beyond the sales team to every customer-facing role. Outreach recently announced Amplify, a program that uses machine learning to scientifically test, measure and optimize the performance of sales teams, while also automating non sales-related tasks. The company also hired Pavel Dmitriev, former Principal Data Scientist, Analysis and Experimentation at Microsoft and one of the few world experts in large scale experimentation, to lead its data science team.
“Outreach has been instrumental in creating and evolving the customer engagement category, which is growing at an exponential rate,” said Alex Clayton, Investor at Spark Capital. “Outreach’s technology, approach and leadership team make it poised to capture this multi-billion dollar opportunity and we are excited to have the company as part of our portfolio.”
“Customer Engagement is a rapidly growing market and Outreach is the dominant player in the enterprise, where they continue to gain momentum,” said Rajeev Dham, Sapphire Ventures Partner.
Rajeev added, “With our deep enterprise relationships and our proven history of taking companies public, this is an ideal partnership. We look forward to joining Outreach on their journey to become the next category-defining software company.”
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Outreach, which has been recognized by Forbes as one of its “Next Billion Dollar Startups”, closed FY2018 up 100+ percent and now has 245 employees (doubled FY2018 to FY2019). The company supports more than 2,400 sales teams and 22,000 users worldwide. Outreach was also recently named one of Seattle Business Magazine’s Best Places to Work and one of the 50 Highest Rated Private Cloud Computing Companies to Work For by Battery Ventures.
