Customer Data Platform vendor Leadspace closed on a $46 million Series D led by Jerusalem Venture Partners (JVP). It has now raised $107 million since being founded in 2011. The firm also announced Alex Yoder as its new CEO as the firm ended a dispute with their former CEO Doug Bewsher.
Leadspace features include company and professional profiles, data hygiene and enrichment, web forms, reports and analytics, TAM and ICP analysis, and account engagement. Leadspace also performs lead prioritization and identifies similar companies. Unlike many CDPs, Leadspace is a pure B2B platform.
The funds will be used for meeting growing demand, expanding its headcount, and resolving litigation. The firm currently has 100 employees in the US and Israel. The 40 employees in Israel are technology-focused, and the US contingent manages business leadership.
“A major part of our post-investment vision is to grow our team in Israel,” said CTO Amnon Mishor.
Leadspace also announced that Doug Bewsher was stepping down as CEO and being replaced by Alex Yoder. According to VentureBeat, there was a falling out between Bewsher, JVP, and the Leadspace board about the company’s direction. Bewsher was looking to sell the firm, while the Board and JVP wanted to continue growing it, resulting in a lawsuit between two JVP partners and Bewsher.
“I’m glad to say that the lawsuit is behind us. The former CEO agreed to leave. A situation arose in which the CEO and some of the investors, particularly Arrowroot Capital were interested in selling the company, while JVP, other board members, and I saw potential in our figures to build up a large company. We had made a technological leap and didn’t want to sell. There was a conflict among the board members and negotiations between the various investors over whether to sell or not, with the lawsuit being part of that. Eventually, everyone reached an understanding,” said Mishor.
Despite the leadership issues and a failed 2018 merger with Radius, Leadspace has grown its market presence. It doubled its customer base over the past two years and grew revenue 151% between 2016 and 2019, placing the firm at 2,681 on the 2020 Inc. 5000 list.
Yoder is bullish on Leadspace, forecasting 70% growth this year, double that of the market. Growth is being driven by the need to find and engage contacts at companies as the pandemic precludes face-to-face meetings.
Yoder has led several B2B and SaaS companies over the past two decades, including WebTrends, Ebiquity, and Trueffect. According to the press release, Yoder has “built strong teams and implemented transformational strategies, running businesses that spanned $20 million to $150 million in revenue.”
JVP Executive Chairman Erel Margalit was named the Board Chairman.
“We typically invest in early-stage companies, but we only double down in category leaders and companies that can reach $100 million in ARR,” said Margalit.
“We believe that Alex Yoder can take the business to the next level as Leadspace becomes the single source of truth for B2B data,” said Margalit. “Leadspace – through its revolutionary AI platform – is changing the way enterprises manage their internal and external customer data. In the coming years, enterprise CDP will be established as a new category, using AI to obtain the true identity, title, and roles of companies and individuals, creating true added value for clients.”
“Creating a source of truth for B2B is a very complex problem. Companies are complex — sales cycles and engagement can be sporadic, involve multiple stakeholders, and can last months or even years,” said Mishor. “There are multiple data and intelligence point solutions that address small parts of the fundamental data issue. No other solution is taking the holistic approach of being the connective layer between raw data and engagement channels for B2B like Leadspace.”
Leadspace clients include Microsoft, Salesforce, American Express, Intel, HPE, and Zoom.