6sense Reaches Unicorn Status

6sense Funding Rounds (Source: Crunchbase)

Sales Engagement vendor 6sense closed on a $125 million Series D that valued the firm at $2.1 billion.  The round was led by D1 Capital, with Sapphire Ventures and Tiger Global joining.  Existing investor Insight Partners participated as well.

A few years ago, 6sense described itself as a predictive analytics company.  When the predictive analytics segment failed to gain significant traction, it rebranded as an ABM Orchestration Platform.  The other predictive analytics companies rebranded as CDPs or were acquired for their technology.

Repositioning as an ABM platform proved prescient as 6sense now competes head-to-head with Terminus and Demandbase, two other very successful ABM Platforms.  Terminus closed on a $90 million Series C in February, and Demandbase is also well funded, setting up a market share land grab for ABM Platforms.

6sense has doubled in size each of the past three years, setting the stage for its unicorn round.  Forrester named them a leader in its Q2 2020 Wave Report on ABM Platforms, where 6Sense scored highest on current offering and tied with Terminus on strategy.

“6sense has made significant progress since our first evaluation of this market in 2018 — and now offers a comprehensive solution, matched by an aggressive vision, roadmap, and market approach,” wrote Forrester Principal Analyst Steven Casey.

Customer conversations are a critical part of our due diligence process, and the feedback from 6sense customers is among the best we’ve heard.  Improving revenue results is a goal for every business, but it’s easier said than done. The way 6sense consistently creates value for customers made it clear that they deliver a unique, must-have solution for B2B revenue teams.”

Dan Sundheim, Chief Investment Officer at D1 Capital Partners

6sense will invest the funds in market growth and product development, including its data layer, machine learning-based next best action recommendations, and scaling its “AI-based orchestration capabilities to deliver ideal customer journeys based on data and insights.”

The round comes 15 months after a $40 million Series C led by Insight Partners.  Pitchbook indicates that the firm was valued at only $300 million in January 2020.  6sense is on track for another year of 100% plus growth after inking deals with 100 new customers in Q4.

“We’re doubling down on our investment because we’ve seen the 6sense team consistently execute against their plans for the past year and a half, and we witness firsthand the results the platform delivers every day for our portfolio of high growth companies,” said Jeff Lieberman, Managing Director at Insight Partners. “Being the leader in account-based sales and marketing technology ideally positions 6sense to unlock additional market opportunities, and we’re confident that they have the vision and track record to forge the future of revenue technology.”

CEO Jason Zintak sees a broader vision for the company than SalesTech, MarTech, or AdTech, describing his firm as a RevTech company.

“Our AI is focused on signal, identifying companies that are in the market to buy something,” Zintak told TechCrunch. “Once you have that, you can sell to them.”

RevTech looks to unify the marketing, sales, RevOps, and customer success groups within the revenue team and align them behind selling to the right buyers at the right time.  Firms still struggle with identifying prospects that are the ideal fit, much less properly timing their prospect outreach.

“This is both a data and execution problem. One can’t be untethered from the other,” blogged Zintak.  “I’ve long believed there is a tremendous opportunity to solve this problem and move the sales and marketing technology world away from outdated tools, and usher in a new era of B2B platforms that will fundamentally change the way companies go to market. We’re already seeing account-based tech, sales tech, and legacy marketing tech categories beginning to converge into a massive market that will only continue to grow. I also believe 6sense is uniquely positioned to capitalize on this opportunity and deliver the transformation our industry is so hungry for.”

Thus, 6Sense looks to provide the go-to-market platform that delivers a “comprehensive B2B go-to-market with data, insights, and orchestration capabilities at the core.”

6Sense identifies the best-fit accounts and supports prospect timing via intent-based prediction models.  6sense claims that its customers:

  • Raise their average deal size by 35%.
  • Increase their opportunity conversion rate by 20%.
  • Reduce deal-cycle time by 20%.

Zintak argues that the alignment problem is exacerbated by multiple tech stacks with data and functional silos that “optimize” around subsets of the revenue problem.

The MarTech landscape is teeming with micro-solutions for every nagging problem the marketing automation platform vendors aren’t able to solve (or they themselves created). SalesTech is no different. Your CRM wasn’t built to facilitate decision-making; it was built to store records. Add RevOps and customer success teams into the mix, and the people, process, and technology alignment challenges grow exponentially, as more data becomes siloed and disconnected from execution.”

6Sense CEO Jason Zintak

“AI generally is a buzzword, but here it is a key part of the solution, the brand behind the platform,” said Teddie Ward of Insight Partners.  “Instead of having massive funnels, 6sense switches the whole thing around. Catching the right person at the right time and in the right context make sales and marketing more effective.  And the AI piece is what really powers it. It uses signals to construct the buyer journey and tell the salesperson when it is the right time to engage.”

“We invest heavily in sales and marketing technology, and 6sense is truly one-of-a-kind,” said Sapphire Ventures partner Rajeev Dham.  “We’ve always viewed 6sense as a market leader with the ability to execute on their bold vision of transforming sales and marketing with data-driven insights and orchestration capabilities.  6sense is already the leading account-based sales and marketing platform, and they are poised to define and deliver the future of revenue technology that every B2B organization needs.”

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