Vista Equity announced that it took a majority stake in Sales Engagement vendor Salesloft. CEO Kyle Porter indicated that the round values Salesloft above $2.3 billion. Salesloft is on a roll, hitting $100 million in annual recurring revenue this summer and growing annual revenue 50% this year.
Salesloft rebranded this fall with new positioning around the “Modern Revenue Workspace.” Its Winter 2021 release included sentiment analysis for inbound emails and an AI Chrome extension tool for optimizing emails. Salesloft also recently opened a German data center, helping it comply with GDPR and European data hosting requirements.
According to Vista Equity, Salesloft is the most capital-efficient business in its space, meaning that they are enjoying smart growth.
“This means customers can trust that we will continue to deliver the best products and service in our industry,” stated VP of Product Management Frank Dale.
At the beginning of the year, Salesloft closed on a $100 million round that valued the firm at $1.1 billion. The January investors, led by Owl Rock Capital, have retained their stakes in the firm.
Porter told the Wall Street Journal that he foresees an IPO but did not provide details on timing.
“From day one, Salesloft’s vision has been to help sellers more successfully engage with and serve their buyers. This investment is a huge milestone in Salesloft’s journey to becoming the most loved brand in sales technology. It gives us the resources we need to continue serving our amazing customers, while innovating solutions to solve the complex challenges faced by sellers.”Salesloft CEO Kyle Porter
The additional funds will be deployed towards product development and market expansion, focusing on the Asia Pacific region, and “tripling down” in EMEA. Salesloft is enjoying triple-digit growth in EMEA after opening its London EMEA HQ in April 2019.
“This deal is about GROWTH for our CUSTOMERS,” posted Porter on LinkedIn. “We’re growing >50% annually as the most efficient player in our category, which is critical to long-term sustainability and success. We will be fueling significant innovation and customer services as a result of this deal.”
“This partnership with Vista is about the future we’re building for our customers,” commented CRO Steve Goldberg. “It’s about making the lives and jobs of sellers easier. It’s about quickly delivering the solutions and experience they need to win.”
“Vista is proud to be a preferred partner for founders of fast-growing, high-performing, high-potential companies, and we are excited to work with Kyle and the Salesloft team,” said Monti Saroya, co-head of the Flagship Fund and senior managing director at Vista. “Salesloft has built an incredible enterprise software platform that provides tangible ROI by empowering sales teams and managers to increase productivity, and we are excited to bring our decades of enterprise software experience to help Salesloft further fuel its growth trajectory and global expansion.”
Vista wrote a long blog welcoming Salesloft, but the piece did not focus on Salesloft’s current positioning or value proposition. Instead, Vista discussed its long history working with Porter (it was a Series A investor), Porter’s focus on recruiting talent and helping build the Atlanta tech ecosystem, and his willingness to mothball the Prospector product so the company could focus on building out its Cadence service.
I would add a few other notes about Kyle, whom I’ve known for just as long. He is a natural-born storyteller who exudes enthusiasm, just as every sales rep should. He also emphasizes authenticity in sales, the need to balance automation with personalization (a variation on authenticity), and the importance of building a strong company culture.
David Cummings, who has served on Salesloft’s Board since its early days, lauded Kyle Porter and his willingness to pivot the company for growth and recruit top talent.
“Salesloft is mostly the story of the will, determination, and grit of the entrepreneur Kyle Porter. From a full reboot of the business in the early days, to multiple pivots, and recently navigating the pandemic, Kyle has endured the high highs and low lows of entrepreneurship many times over. And one of his superpowers is recruiting an amazing team starting with Rob Foreman. Rob was introduced to Kyle through a chance encounter at a local event. From there, the two hit it off and developed one of the strongest yin/yang partnerships I’ve ever seen. The team grew to include incredible leaders across all the functions including Ellie, Sydney, Scott, Chad, Steve, and many others.”
“Kyle was the visionary all along,” continued Cummings. “Through a strong focus on organization health, never-ending love for the customer (#saleslove), bold acquisitions of several companies, and masterful fundraising, Kyle operated in one of the most aggressive, yet thoughtful, ways imaginable.”
The RevTech space has some excellent CEOs who match product vision and intelligent growth with passion and a stakeholder perspective. Besides Porter, the industry is lucky to have Henry Schuck (ZoomInfo CEO), Manny Medina (Outreach CEO), Jon Miller (Founder of Engagio and Marketo and currently the Chief Marketing and Product Officer at Demandbase), Sangram Vajre (co-founder of Terminus, author, and leader of the Flip My Funnel movement), and others.
Salesloft supports 4,000 customers, including IBM, Google, Cisco, Shopify, and LinkedIn.
As part of the transaction, Vista will be joining Salesloft’s Board, and Cummings will be exiting it.