Cognism $87.5M Series C

London-based Sales Intelligence vendor Cognism closed on an $87.5 million (£64m) Series C.  The round was led by Viking Global Investors and Blue Cloud Ventures, with follow-on investors AXA Venture Partners, Swisscom Ventures, and Volution.

Total funding is just shy of $130 million.

The funds will be deployed for European expansion and strengthening Cognism’s position in the United States.  Growth will be a “combination of organic growth and acquisitions.”

“The funding will help us empower many more businesses with international sales intelligence over the coming years, setting a new standard in data quality and compliance,” explained CEO James Isilay.  “It will accelerate our growth and global expansion plans as the leading provider of intelligent B2B sales data.”

“We will be organically expanding in the United States this year and have just hired new sales leadership (Mark Sparaco) to accelerate our growth,” Isilay told GZ Consulting.  “Europe remains our primary focus, but we see significant differentiation to other providers in our US and International data that we see significant growth opportunities.”

The firm will remain focused on improving its global data coverage and Sales Intelligence capabilities in 2022.  Roadmap features include marketing enhancements and localization in non-English speaking countries.

Cognism is coming off another strong year, with ARR growth hitting 100%.  They have over 1,000 customers, located in over forty countries.

Isilay is targeting another year of 100%+ growth and stated that Cognism is off to a good start in January with a “record revenue month.”

2021 data improvements include Diamond Data and the addition of Bombora’s intent data set as a premium offering.  Diamond data provides “the most accurate, GDPR & CCPA compliant phone-verified contacts for business development teams internationally, setting a new standard in data quality,” boasted the firm.

The Diamonds-on-Demand request feature supports on-demand phone verification from both the web application and the Cognism Chrome extension.  Users click on a Diamond Verify button to initiate the verification process, which is completed within 48 hours.  In addition, users can track the status on the platform.

“No other software company offers a truly global sales intelligence platform like Cognism. “By pairing our premium quality contact data with advanced contextual data points like technographics and buyer intent signals, we help modern revenue teams connect with confidence and exceed targets. We enable them to build a meaningful connection with their next best customer in the most predictable, efficient, and cost-effective way.”

Cognism CEO James Isilay

Cognism has grown to over 250 employees in seven countries: the United Kingdom, United States, Canada, South Africa, Croatia, Macedonia, and Germany.

Cognism did not state its market valuation.

Cognism also announced that it is SOC II Type 2 compliant.  The designation confirms that Cognism meets AICPA’s Trust Services Criteria for Security, Availability, Confidentiality, Processing Integrity, and Privacy with regards to data.

“We live and breathe security and compliance at Cognism as we handle large amounts of company data that help our customers reach new target audiences,” blogged Cognism CTO Stjepan Buljat. “Most companies, when they start their SOC 2 compliance journey, choose to select type 1 qualification, whereas we’ve selected the more complex type 2 route – often described as the difference between a balance sheet audit and a full audit of financial operations.  Type 2 looks at the information security controls we have in action and confirms that we’re organised to handle the data privacy concerns of the largest companies on the planet.”

Cognism Funding History (Source: Owler)

Echobot European Expansion

German Sales Intelligence vendor Echobot closed another successful year of product enhancements and revenue growth.  Echobot offers deep sales intelligence and data hygiene services for Germany, Austria, Switzerland (D-A-CH), and the UK.

In late 2020, Echobot launched its UK database and English language UI, providing a secondary market beyond the DACH region.  The firm grew MRR over 70% this year and hit 1,500 clients.  New business rose 80%, and the firm hired its 100th employee (up 44% this year).  Echobot continues to be EBITDA and Cash Flow positive.  Echobot is self-financed, not having taken any funding since 2013.

The firm also moved into a larger headquarters office in Karlsruhe with 16,000 square feet.

Along with fit-and-finish work on their UK services, the firm rolled out version 2.0 of their TARGET prospecting database.  TARGET offers a refreshed UI, improved data quality, and AI tools for ICP and segmentation analysis.

Users no longer need to build company and contact lists separately.  Instead, build-a-list results are displayed as tabs, allowing users to analyze both company and contact results without requiring them to rekey their query.

Echobot’s product vision is based on its “first principles of data” delivered through its service.  “For data to be useful, it has to be high quality, connected, and fully compliant,” said CEO Bastiaan Karweg.

Data improvements include an Email Validation Engine (EVA) and a “True Compliance” process for GDPR.  EVA “eliminates stale records” and implements mail server and pattern checking to improve data quality.  The EVA reduces bounce rates by up to thirty percent.

“For your outreach to be truly GDPR compliant, you not only need a Legitimate Interest but also be mindful of the preferences of the people you are trying to contact,” stated Karweg.  “Using Echobot, each contact record comes with a public source URL so you can be 100% confident when a prospect asks you, ‘Hey, where did you get my data from?’” Also new is a subject taxonomy that covers over 100,000 topics and industry keywords.

Echobot offers data for DACH, the UK, and the EU. A French dataset will be available in Q1.

Echobot is launching an EU Data pack that “covers the most important companies from all of Europe,” Karweg informed GZ Consulting.  “It’s not as deep data as with DACH, UK, or France, but it will give clients access to essential brands and contacts in each market.”

All four regions (DACH, UK, France, and EU) will be available in all three products (TARGET prospecting, CONNECT Sales Intelligence, and DATACARE hygiene) and the API in any combination.  However, the EU Data Pack omits company and contact data for the DACH countries, France, and the UK.

A French dataset, spanning six million companies, will be launched in Q1 with a French UI and localization.  French sales will be managed from the Karlsruhe office as it is only three miles from the French border.

Finally, Echobot expanded its sales triggers to 33 English-language event categories spanning the full UK universe.  French triggers are in development.

“We are excited to start 2022 with our new product and data assets,” said Karweg.  “Our goal is to continue on our strong growth trajectory and gain more market share in other EU countries.”

Lusha Series B

Crowdsourced contact vendor Lusha closed on a $205 million Series B that valued the company at $1.5 billion.  Growth equity firm PSG led both the Series A and B rounds.  ION Crossover Partners also joined the B round, which brought total Lusha investment to $245 million.

Following its February Series A, Lusha invested in its go-to-market strategy and trebled its growth rate.

“We were still bootstrapped one year ago when we understood that we have a big opportunity to surge forward.  We have since tripled our revenue growth rate, and that is why we required another funding round faster than we thought,” explained CEO Yoni Tserruya.  “The next stage will be to go public.  I’m not sure when that will be, but it will take at least two more years.  We are seeing many companies that are going public too early and are facing difficulties in making projections and meeting expectations.”

The additional funds will be deployed towards building out its community of 800,000 B2B sales professionals “into the industry’s largest,” expanding its global presence, and continuing to focus on data quality, compliance, features, and ease of use.

“We have been following Lusha’s progress over the last two years and found the team’s vision and execution highly impressive. As sales teams continue to leverage data to drive their go-to-market strategies, Lusha is becoming an integral product for teams to optimize their outreach to improve overall win rates. With Lusha’s data significantly increasing the value and ROI realized by sales teams, we are excited to be a part of this next chapter in Lusha’s remarkable journey.”

Gili Iohan, General Partner at ION Crossover Partners

“Our primary goal is to give every salesperson, regardless of size or budget, access to the highest quality data at the most affordable price while championing world-class standards of privacy and compliance,” said President Assaf Eisenstein.  “With this funding round, we will continue to invest highly in our data infrastructure and privacy standards to provide optimal levels of compliance and security for Lusha’s 800,000+ community members,” said Assaf Eisenstein, Co-founder and President of Lusha.

Contact data is gathered from a Community service that ingests email headers and signature blocks to maintain business card and email signature data.  Data is also collected from publicly available sources, third-party licensing, and algorithmic data appending (e.g., email templates).  Lusha claims that its community members help Lusha deliver “the most accurate data through constant validation and enrichment of its database.” 

As part of its GDPR and CCPA compliance program, individuals are notified when they’ve been added to the database.  Only business data is gathered, with no Personally Identifiable Information collected.

Lusha provides 100 million business profiles, 60 million email addresses, and 50 million direct dials across 15 million companies.

The Lusha browser extension for Chrome, Firefox, and Edge sends contacts from Gmail, social media, and B2B sites directly to Salesforce, HubSpot, Pipedrive, Zoho, SalesLoft, and Outreach.  Users license credits individually or for a team, with the admin allocating credits.  Lusha also supports Salesforce bulk enrichment and a contacts API.

Lusha employs a freemium model for limited contact information lookup, but users must pay to export data, build prospect lists, enrich files, and integrate with CRMs and SEPs. Annual pricing is shown.

Lusha helps sales professionals identify their ideal buyers and tailor their message to potential customers.

“Similar to the shift that marketing underwent a decade ago, sales professionals are abandoning spray and pray outreach, in favor of super-targeted selling based on data,” said Tserruya.  “Lusha enables all salespeople to utilize data to recognize their most relevant opportunities and maximize revenue in a simple, easy-to-use solution.  We look forward to using this funding to be at the forefront of this industry shift and grow Lusha into the largest B2B sales community”.

Lusha is rapidly growing, adding 29 staffers last month.  It grew 45% over the past six months and 103% over the past year to 229 employees.  Engineering grew 170% over the past year to 55 employees.  Their other top departments are Sales (34 headcount, up 106%), Support (22 headcount, up 175%), and IT (21 headcount, up 91%).

The Israeli firm expects to end the year with 240 employees, twenty in its Boston office.

Lusha, founded in 2016, lists 32 open positions: five sales and support openings in Boston and twenty-seven openings in Tel Aviv across engineering, data, R&D, product, marketing, sales, HR, compliance, finance, and customer success.

Lusha’s customers include Facebook, Google, Dropbox, and Uber.  Most of its customers are B2B SaaS companies, but it’s also used by VCs, investors, and recruiting agencies.

SalesIntel Launches Two Products

Sales Intelligence and B2B DaaS vendor SalesIntel announced two products at its inaugural SAS2021 user conference last month.  CEO Manoj Ramnani founded SalesIntel a decade ago as Circleback, a contact enrichment and syncing service for inboxes, but pivoted the firm to focus on high-quality B2B data three years ago and rebranded the company SalesIntel. 

SalesIntel was born “with a mission to provide quality data, timely intelligence, and streamlined workflow to help businesses achieve their growth objectives.”  Its guiding principle, and unique value proposition, is keeping humans in the loop.  Human-verified data is re-verified every 90 days, providing them with a 95% contact accuracy claim.

At launch, the company had 50,000 human-verified companies and one million contacts.  Three years later, the company has

  • 87 million machine-verified contacts
  • 10 million human-verified contacts, 90% of which are North American.
  • 14 million machine-verified company profiles
  • 3 million human-verified company profiles

They have also partnered with Bombora for intent data and an undisclosed vendor for technographics.

The first new service, Data Enrichment, provides company, contact, and technographic data enrichment for Marketo, Salesforce, and uploaded CSV files.  Data matching is performed against email, phone, domain, company name, and contact name.  Fuzzy logic is employed for company and contact name matching.

SalesIntel Enrichment Report in Salesforce.

The service includes a PDF downloadable enrichment report that details data quality and fill rates.  If the admin is concerned about the enrichment, she may roll back the process.

SalesIntel also supports webform enrichment.

InboxIntel supports contact data syncing and enrichment from Gmail, Office 365, Exchange, and IMAP.  New contacts are ingested from signature blocks, matched against the SalesIntel database, and uploaded to Salesforce.   It is important to note that SalesIntel is not uploading and storing the data in their servers to build out its dataset but simply using it to populate and enrich its customers’ CRM.

InboxIntel also checks to see whether other new contacts at the company match a pre-defined buyer persona.  The service then asks whether these additional contacts should be added to the service.

InboxIntel identifies additional contacts in target personas.

If both the company and contact are new to the CRM, records may be added to Salesforce as leads or accounts and contacts.

Both products are available as beta services through the end of the year. After that, they will be packaged as separate offerings.  Ramnani described them as “new modules of our Modern Go-to-Market platform that will help with the firm’s continued growth.”

SalesIntel has grown to 400 employees and 2,000 global researchers.  The company supports over 1,000 companies and nearly 10,000 users.

SalesIntel posted 200% revenue growth over the past year.

Apollo.IO $32M Series B

Sales Intelligence and Engagement vendor Apollo.io closed a $32 million Series B led by Tribe Capital, with participation from NewView Capital and existing investor Nexus Venture Partners. In addition, Sri Pangulur, a partner at Tribe Capital, joined Apollo.io’s board.  Total funding sits at $41.3 million.

Apollo is deploying the funds towards building out its product and engineering teams.  It will also expand its sales, marketing, and operational resources, including additional leadership hires.

In a blog announcing the transaction, CEO Tim Zheng admitted that the Apollo brand is not well known and that Apollo will be using the funds to address brand weakness.  “Our next steps include increasing awareness of Apollo, increasing our user base outside of small teams, and building out an intelligence layer in Apollo to make individual sales reps and teams more successful.”

Apollo is growing rapidly, with its customer base increasing 200% over the past year despite awareness issues.  It has been profitable for the past eighteen months and has more than one million users and 9,000 paid customers.

Recent enhancements include an international dialer, contact and company data improvements, and prospecting and Chrome extension upgrades.

“Apollo is challenging the status quo in B2B lead intelligence and sales engagement by making contact data and prospecting tools in this space more accessible,” said Pangulur. “Seeing the company’s incredible growth over the past year, enhanced product offerings, and new client acquisitions, we are confident in Apollo’s ability to disrupt the SalesTech market for B2B companies, offering a more intelligent, more cost-effective, and simpler solution.”

Apollo falls into a category that I’ve labeled Hybrid Engagement that combines sales engagement tools with sales intelligence and B2B DaaS.  Other vendors with Hybrid Engagement capabilities include ZoomInfo, Cognism, Data Axle Genie, and VanillaSoft.

“Sales professionals at B2B companies are burdened by a go-to-market process that’s manual, tedious, and complex. It’s stifled by convoluted workflows, very little guidance, lengthy onboarding, and high price tags for name-brand solutions,” said CEO Tim Zheng. “This funding will help us further accelerate our product-led growth model, which has seen tremendous success in the contact data space. 

“Apollo’s vision is to give its customers the most powerful and intelligent GTM platform in the industry, so they can reach their full market potential,” continued Zheng. “We want to make access to B2B data even easier, while enhancing the data with sales intelligence and automated workflows.”

Apollo Job Change Alerts

Apollo has assembled a database of 200 million contacts across ten million companies.  Data include direct-dial phones, emails, funding intelligence, technographics, and job changes.  Apollo’s dataset supports direct research, lead prospecting, and LinkedIn matching via a Chrome Extension. In addition, Apollo Refresh performs real-time updates in Salesforce.

Sales Engagement features include sequences (cadences), automated emails, A/B testing, a click-to-call dialer, and a rules engine.

“As we emerge from the pandemic, buyers want an Amazon-like experience where companies are anticipating their needs. You need user data to better drive the sales experience, and as it evolves more personalized capabilities as well,” said Zheng.  “Apollo has some unique positioning in that they are doing product-led growth, but also covering the data stack as well.”

Apollo employs a freemium model with ten free exports per month, the Chrome extension, a Gmail extension, and limited sequences. 

Basic, at $49 per user per month ($39 billed annually), provides 250 export credits per month, unlimited sequences, email integrations, and a broader set of reports and Dashboards. 

The Professional edition adds the dialer, call recordings, customizable reports, and 1,000 exports per month.  Professional is priced at $99 per user per month when billed monthly and $79 per user per month when billed annually.

There are additional fees for full Salesforce synchronization, API access, Apollo Refresh, and exporting up to 10,000 records at a time. In addition, advanced dialer features (e.g., international dialing, call transcription, local presence, and CRM logging) are only available as part of custom packages.

Apollo employs a freemium model with 9,000 paid customers.

The Great Reshuffle

According to LinkedIn, “The Great Reshuffle” has increased turnover amongst buyers and sellers, leading to greater deal risk.  Over the past three months, executive departures (Director and above) have increased by 31% globally.  Among sales reps, the rate is up 39%.  Thus, the likelihood of a deal being delayed due to a key member of the demand unit or sales team leaving has grown sharply.

Before the pandemic, the standard decay rate of contact records was between 25 and 30%.  If the rate has jumped by one-third, then the likelihood of a specific member of the buying committee departing over a three-month sales cycle is approaching ten percent.  Thus, a demand unit with six members will likely have one departure every three months, increasing the need for executive change alerts, multithreading of deals, and a deeper understanding of the demand unit.

If the deal is more complex, the odds of delays and stalled deals due to executive changes increase rapidly.  A six-month deal cycle with a dozen members of the demand unit (financial, technical, and functional decision-makers, purchasers, influencers, lawyers, compliance, etc.) could lose two or three members.  And that doesn’t even factor in the risk of churn on the vendor side.  What’s worse, single-threaded sales reps have close to a 20% risk that their champion leaves the company or assumes a different role over the deal lifecycle.

The renewal math becomes scary as well.  If the customer success team regularly interfaces with four individuals on the customer side, one or two of them may depart over the year, increasing churn risk.  Furthermore, a higher churn rate among customers necessitates greater administrative and training tasks.

It shouldn’t be a surprise that 80% of sales reps have had a deal delayed or lost due to departures.

LinkedIn Senior Director of Global Sales James Burnette argued that multithreading is key to managing deal risk.  “Multithreading – i.e., forming relationships with multiple people on the buying committee at an account – is always a best practice.”  Burnette noted that sellers with at least four connections at an account are “16% more likely to close a deal with that company, compared to sellers who have less than four connections.”

“The most beneficial thing you can do right now is to learn how to master multithreading,” JB Sales Training Director Morgan Ingram said. “Gathering champions, influencers, and talking directly to the decision-makers is the key to success when it comes to closing deals faster in a difficult environment.”

Conversely, departures can foster relationships at new accounts, so knowing that a key demand unit member has departed is important for both risk mitigation at current opportunities and accounts and building relationships at new organizations.  LinkedIn can both flag executive departures and maintain an open line of communications with a champion after he or she has settled into a new position.

“Resources are scant with so many people exiting key roles, so there are opportunities where they might not have been opportunities in the past,” Assist You CEO Robert Knop said. “Look through your connections – there are uncovered sales there.”

Lori Wizdo, Principal Analyst at Forrester, predicts that the Great Resignation will also impact marketing teams, with CMOs assembling more virtual teams consisting of freelance talent, fractional executives, and agency partners.

“We’re seeing clients in places like the Midwest having trouble keeping the talent they’ve built because their team members can get 25% more by working remotely for a New York agency. The distance and untethering from our geographies give people a lot more options, and they will minimize their pain and maximize their gain.  So, there will be some stress on those internal competencies.”

Job turnover is likely to continue in the near term. The labor market remains out of balance with 100 open jobs for every 75 unemployed professionals, driving the quit rate to 4.4 million in September, a record high.

“You’re essentially seeing demand continuing to increase without an offsetting increase in talent,” Ryan Sutton, a district director at staffing company Robert Half International. “Until some new talent comes in, until we get employees who are on the sidelines back into the market, it’s very likely this is going to continue.”

Openprise $16M Series A

RevOps Automation Platform Openprise closed on an oversubscribed Series A last month.  The $16 million round was led by SIG Asia Investment, an affiliate of the Susquehanna International Group, with new investments from Banyan Pacific and Citta Capital.  Existing investors Alumni Venture Group and AI List also participated.

Funding will accelerate development on the Openprise RevOps Automation Platform and scale up the sales and marketing teams.

Openprise supports data management, enrichment, and hygiene across sales, marketing, customer success, BI, and analytics platforms.  Features include data deduplication, data onboarding, lead-to-account matching, lead routing, attribution, and account scoring.

Openprise RevOps automation capabilities.

Openprise cited a recent Gartner forecast that 75% of high-growth companies will deploy a RevOps model by 2025.  “A move from sales enablement to revenue enablement is needed in today’s rapidly shifting buying and selling dynamic to support this RevOps imperative.”

“Openprise is uniquely positioned to capitalize on the momentum in companies moving to a RevOps model,” stated Anne Marie McCallion, its PR rep.

“When companies move to a RevOps model in order to better align marketing and sales, they soon identify huge gaps in their joint processes and data that aren’t addressed by traditional marketing and sales automation solutions like Marketo, Salesforce, and Salesloft,” said Openprise CEO Ed King.  “Openprise is fueling the RevOps revolution by providing a single, no-code platform that can automate hundreds of RevOps processes and deliver go-to-market-ready data for the entire RevTech stack.”

Openprise customers include UI Path, Vimeo, Zendesk, Okta, Nutanix, Freshworks, Splunk, and Zscaler.

Openprise will face stiffer competition from RingLead, which was acquired by ZoomInfo in September.

Cognism a Future Fifty Company in UK

UK Sales Intelligence vendor Cognism was named to Tech Nation’s Future Fifty 2021 list.  CEO James Isilay called the past year “a year of incredible transformation” for Cognism as it grew revenue by 90% and closed in on $20 million ARR. 2021 is the second consecutive year that Cognism made the exclusive Future Fifty list.

Cognism was also named one of the top 15 UK Startups by LinkedIn.  The firm continued hiring through the pandemic, with LinkedIn listing 277 employees in the UK, US, and Europe.  Cognism has been rapidly building out its sales team, growing it 165% over the past year to 90 headcount.  Its support team grew 58% over the past year to 40 CSMs.  Cognism also doubled its product management and IT teams.

London-based Cognism grew its headcount 63% over the past year and 115% over the past two. It’s ARR is nearing $20M.

Cognism plans to retain a flexible working environment and recruit talent outside of its primary office locations.  LinkedIn lists 23 positions in London, Boston, New York, Germany, Croatia, and South Africa.

On Monday, Cognism announced Diamond Data, “a new standard in B2B data quality.”  It emphasized that its contacts are accurate, compliant, and phone-verified.  Mobile numbers are phone-verified and checked against global do not call (DNC) lists. Cognism contacts are GDPR and CCPA compliant.

Cognism promises to “minimise inefficiencies due to inaccurate job titles and incorrect / misdialed numbers and create a leaner, faster sales process.”  Cognism offers revenue teams “unrestricted access to prospect data” available through its platform and via CRM and SEP connectors.

A new Diamonds-on-Demand request feature supports on-demand phone verification.  Users simply click on a Diamond Verify button to initiation validation.  A diamond appears on headshots of verified contacts.

“As a company we are constantly researching and identifying new opportunities and partnerships to ensure our platform delivers the best possible results for the highly competitive B2B market landscape. Diamond Data is just that – the best you can get. It is always evolving, and we want to assure our clients that they can target their prospects in confidence, leaving the compliance and data accuracy to us.”

Cognism CEO James Isilay

Diamond Data is immediately available.

Cognism is also delivering Bombora’s intent dataset for identifying in-market buyers and related contact information.  Intent data is available as a screening select and displayed as a build-a-list Heat Map.

Cognism’s new Diamond Data offering.

Finally, Cognism announced that industry veteran Phil Garlick joined their board.  Garlick served as the VP of Corporate Development at DiscoverOrg and President of OneSource Information Services.

Flash: Demandbase Acquires InsideView and DemandMatrix

ABX Platform vendor Demandbase acquired InsideView and DemandMatrix, providing it with an established and well-regarded Sales Intelligence platform, company and contact data, technographics, and data hygiene capabilities.  The acquisitions follow on last year’s acquisition of ABM Platform Engagio, which was unified with Demandbase as part of the Q4 Demandbase One platform release.

“It’s a feeling of expansion, born of learning so much from our customers, and born of the digital transformation that has happened in the last year,” said Demandbase CEO Gabe Rogol.  “This is an intentional step for us beyond being solely an ABM leader and into broader B2B go-to-market. That’s important because ABM is just a part of the go-to-market challenges that B2B companies face.”

The new services are packaged as an ABM Suite consisting of four clouds: ABX, Advertising, Sales Intelligence, and Data.  Customers will have the flexibility to order various elements of the suite, selecting the clouds and services that fit their needs.

“Our focus has been on building the most complete ABM solution (we call it ABX, because it’s not just marketing),” said Rogol, “and that was the impetus behind acquiring Engagio, putting a lot of the top of funnel and lower funnel stuff together.  That will still be important.”

While some may view this as Demandbase growing beyond ABX, it is an opportunity for them to complete the ABX vision.  I have long been critical of Demandbase’s limited framing of ABM within the marketing department.  While they acquired Spiderbook, a small sales intelligence vendor, a few years ago, it withered on the vine and is no longer mentioned by the firm.  InsideView provides them with an opportunity to realize ABX as a complete customer lifecycle solution.  There are still missing elements such as sales engagement tools and chatbots, but they are now working on a much wider canvas.

Demandbase is in a sprint to establish the ABX platform space against vendors such as Terminus, 6Sense, and Dun & Bradstreet.  It has been using the ABM three-letter acronym for a dozen years and was a lonely voice extolling ABM for half of that time, arguing for a shift from demand generation marketing to account-based strategies.  Earlier this year, it shifted from ABM to ABX (Account Based Experience), which places a greater emphasis on long-term relationships with customers and the broader revenue team (sales, marketing, customer success).

“We’re proud to join forces with these two great companies. Our vision is bold. We are transforming how B2B companies go to market, helping them deliver great experiences at every stage of the account journey. This requires great data — and we now have the premium B2B data and intelligence solutions to help companies identify, understand, and engage their customers and prospects. With this move, Demandbase moves from being ‘just’ a leader in account-based programs to being the definitive leader in B2B go-to-market…

These new offerings let us work even more flexibly with our customers. Customers can mix and match to focus on the areas most important for them, whether that’s data embedded to their existing systems, or advertising, or sales intelligence, or a full account-based transformation. We are moving aggressively to deliver on this mission, and no company will move faster than us to achieve it.”

Demandbase CEO Gabe Rogol

Acquiring InsideView and DemandMatrix strengthens its position in both marketing and sales.  Furthermore, InsideView’s sales triggers provide Demandbase customers with a rich set of talking points for account managers and customer success teams, letting them know if there are executive changes, M&A events, new partnerships, etc.

Demandbase One added the Sales Intelligence and Data Clouds with this week’s acquisitions.

Demandbase, which offers an ABX Cloud and an Advertising Cloud, now supports a Data Cloud and Sales Intelligence Cloud.  The Sales Intelligence Cloud is based upon InsideView and supports:

  • Prospect Finder – A traditional list-building feature for company and contact data.  Along with firmographic and biographic data, the InsideView prospect finder includes connection variables (Who Know Who “six degrees”), sales triggers (17 + custom variables), data availability (e.g., LinkedIn Connections, Email), and suppression lists.
  • Browser Extension – A Chrome extension for quick lookup and prospecting.  The extension displays InsideView company and contact profiles from LinkedIn, company websites, and CRMs.  Records may be sent to the CRM or Sales Engagement Platforms.
  • News and Social Insights – InsideView publishes daily email alerts based upon their sales triggers.  As these are event-based, most company noise (e.g., stock price fluctuations, scores for teams playing at branded stadia) is removed and duplicates suppressed.  They also support inline social media viewing for Facebook, Twitter, and Company Blogs.  Inline viewing helps account managers and customer success teams stay abreast of key accounts.  It also assists marketing and CI professionals in monitoring key partners and competitors.
  • Corporate Hierarchies – Family trees assist with lead-to-account mapping, selling deeper into an organization, and ensuring that leads are accurately scored and routed.

The Data Cloud consists of Demandbase, InsideView, and DemandMatrix assets.  InsideView contributes close to 100 million global contacts and 17 million companies.  DemandMatrix supports technographics (current tech stack, future technology needs, technology-based skill set trends, cloud consumption revenue, and IT Spend). 

Other Data Cloud services include Demandbase Account Identification, InsideView Apex (ICP Discovery and Expansion), InsideView Data Integrity hygiene tools, and the InsideView API.

“For the last 15 years, we’ve been focused on empowering our customers to experience rapid revenue growth through the power of data.  InsideView’s leadership in sales intelligence made it clear to us years ago that stronger ties between sales and marketing lead to more revenue—and data is the key. By joining forces with Demandbase, we’re combining our legacy and leadership in sales, and the industry’s freshest, most reliable data, with leading marketing technology. Our customers will be able to do more with data across more B2B revenue channels from sales, to advertising, to account-based campaigns. We’re taking the convergence of data and workflow to the next level.”

InsideView CEO Umberto Milletti

InsideView was highly rated in The Forrester Wave B2B Marketing Data Providers Q2 2021 report, scoring a five (highest score) across 14 of Forrester’s 24 evaluation criteria.  Among the categories in which they excelled were data management, data coverage, and customer support.

Rogol emphasized the value of technographics for enterprise technology companies, saying that “for technology companies, the number one feature in a data science model is what technologies your prospect owns.”

“B2B data is complex, and customers consistently ask us for help with their data stack,” said DemandMatrix CEO Meetul Shah. “We started with further innovating technographic data to give customers valuable insights into their prospects and what other technologies they might buy. By now being part of the Demandbase Data Cloud, we’ll be able to provide customers access throughout the B2B data stack to help them realize their revenue goals.”

Both Milletti and Shah will continue running their respective businesses and join the Demandbase executive team as general managers.  The two subsidiaries will operate separately, but the firm will consolidate the data across the offerings.

Acquisition prices for the two firms were not disclosed.  The InsideView service lists its revenue at $30.5 million and 275 employees, which has remained stable over the past few years.  DemandMatrix is listed at $3.0 million in revenue with 90 employees.

InsideView’s self-profile (May 4, 2021)

“At Demandbase, our vision is bold. We are transforming how B2B companies go to market, helping them deliver great experiences at every stage of the account journey.  This requires great data,” said Demandbase.  “We now have the premium B2B data and intelligence solutions to help companies identify, understand, and engage their customers and prospects. With this move, Demandbase goes from being ‘just’ a leader in account-based programs to being the definitive leader in B2B go-to-market.”

InsideView and DemandMatrix customers benefit from the more extensive go-to-market capabilities of their parent.  The DemandMatrix suite helps customers:

  • Design and orchestrate their entire buyer’s journey across marketing and sales
  • Personalize their website experience, track account-level engagement, and attribute revenue
  • Deliver account-based display, native, and social media advertising that is brand safe for B2B
  • Target and segment their market

Rogol admitted that the integration work would not be easy.  “Obviously, we still have a lot of the execution work ahead. One thing to point out is that these are different types of acquisitions than Engagio. With Engagio, the goal was to get to the most comprehensive ABM platform. These are adjacent expansions, so they’re going to operate as standalone businesses pretty much.”

Barb Mosher Zinck of Diginomica was bullish on the transactions, calling it a “smart move” to consolidate the data from three companies under a single platform.  “It’s essentially a Customer Data Platform (CDP) without the CDP name (and some CDP capabilities), providing all the critical information sales and marketing need to find the right accounts and contacts within those accounts. The intelligence DemandMatrix brings on technology is key, as is the ability from InsideView to see when things are changing in a company.”

“I also like that Demandbase has broadened its offering from only account-based marketing to sales intelligence because the two groups are tightly aligned,” continued Mosher Zinck.  “These two solutions can operate separately but bringing them together under the same umbrella with access to the same data is key to ensuring a company-wide focus on customer experience.”


The following Market Flash published on May 4th to my newsletter subscribers. I also offer a detailed InsideView product review for purchase ($349).

Leadspace Closes on Series D

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.”

Competitors include D&B Lattice, 6Sense, Zylotech, and ABM Platforms.  Yoder contends that Leadspace’s strength in in analyzing unstructured social and behavioral data.

“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.