Sales Engagement Platform vendor Outreach closed on a $200 million financing round that values the firm at $4.4 billion and brings total funding to $489 million. The round trebled its market cap over the past year.
Premji Invest and STEADFAST Capital Ventures led the round. Other new investors include Tiger Global Management, Sequoia Capital Global Equities, Vista Public Strategies, and one of the largest U.S. asset managers based on the West Coast. Existing Outreach investors, including Salesforce Ventures, Lone Pine Capital, Sands Capital, Mayfield Fund, DFJ Growth, and Trinity Ventures, also participated in the round.
Outreach continued its rapid growth during the pandemic, with B2B firms looking to operationalize their sales outreach, improve remote coaching, refine forecasts, and monitor sales activities and engagement.
The firm more than doubled Q1 ARR year-over-year and has signed 18 of the top 24 fastest-growing public software companies. ARR is around $125 million, according to Nathan Latka. LinkedIn shows them adding sixty employees a month over the past three months.
Outreach has grown to more than 871 global employees, with recently opened offices in Prague and London. The firm is based in Seattle and has a San Francisco office.
At their Unleash user conference last month, they released their real-time conversational intelligence platform Outreach Kaia along with Outreach Insights, their buyer emotive signals and sentiment service.
Outreach Success Plans, which is currently in beta, was also unveiled at Unleash. Success Plans align buyers and sellers to improve action and predictability. They act as a buying hub that allows buyers and sellers to agree on shared success criteria, objectives, and timelines. Success Plans also support shared access to project resources, allowing new demand unit members to quickly access project documents.
“This past year represents a true moment of maturity for Outreach – we are now a mission-critical part of the revenue tech stack for customers. The bets we made years ago, including significant investments in artificial intelligence combined with prospecting, closing, and customer success capabilities integrated into one holistic platform, are what revenue organizations need most right now to be successful. We continue to lead and expand the vision for sales engagement. Now, we are poised to deliver more meaningful business outcomes for our customers than ever before – from the rep to the CRO and from small businesses to the enterprise.”Outreach CEO Manny Medina
Outreach will deploy the additional funds to expand its sales and marketing functions to meet “the growing demand” for its Sales Engagement Platform. Funds will also be used to build, acquire, and deliver “new revolutionary technologies.” Finally, the funds will support expansion plans and new market investments.
“Over the past five years as I’ve served on the board, Outreach emerged as a definitive standard for sales and customer engagement – proven by thousands of companies that use Outreach every day as a critical component of their workflow and their tech stack,” said Karan Mehandru, Managing Director of STEADFAST and Outreach board member. “Companies across every industry are reaccelerating growth and hiring post-pandemic and embracing intelligent automation to power their revenue teams.”
Mehandru told Bloomberg that he expects to see multiple sales software startups succeed with “multiple winners in the category.” Mehandru likened Outreach to a modern-day Salesforce.
“If (Salesforce CEO) Benioff were to start a sales company today, it would look a lot more like Outreach,” stated Mehandru. Mehandru did not forecast when an IPO would take place but said, “We do think going public is an important event in the company’s cycle.”