LeadIQ’s rapid growth catches business attention as sales software market remains hot – TechCrunch

This morning, LeadIQ, a startup working in the sales software market, announced the closing of a $ 30 million Series B led by Cathay Innovation. Other investors in the transaction include Fresco Capital, Strong Ventures and Eight Road Ventures.

LeadIQ frames its product from the perspective of missed revenue targets in businesses, which it says impacts nearly two-thirds of transactions today. The startup service is designed to save sales reps time by taking care of most of the data entry work of the sales prospecting process by automating lead capture. The LeadIQ product also includes analytics covering the effectiveness of prospecting for a client, which can then be segmented by worker performance and more general breakdowns such as industry and company size.

Previously, LeadIQ had raised around $ 12 million, although the company told TechCrunch it only spent $ 6 million of that total, despite an eight-digit ARR (the $ 10 million threshold). .

Why raise more capital if it didn’t need it? According to the CEO and co-founder Mei SiauwLeadIQ is moving towards taking care of account management instead of just managing leads. Building new products is expensive, so more capital will help company staff prepare for the job.

Why focus on sales account management rather than just focusing on leads? According to Siauw, this effort will help sales teams work better with marketing teams, allowing for more comprehensive information sharing and hopefully better sales results. The CEO compared marketing to net fishing. Sales, she said, are more akin to hunting fish with a spear. With account-level tools leading to more comprehensive information sharing, she hopes to give sales teams a better chance of catching more fish, to extend the analogy.

The business has been successful to date as noted above. Frugality, however, is only a virtue in startups when paired with rapid growth. LeadIQ is achieving this mark, having increased its Annual Recurring Revenue (ARR) approximately 3 times over the past year. The company also has net retention figures of around 125% and a strong ratio of account size to customer acquisition costs. These are the types of metrics that SaaS investors covet.

The LeadIQ cycle is another data point in our understanding of today’s sales-driven software market. It appears to be an active industry with another Gongo.io sales software service launching some quick shots in recent quarters, including a $ 250 million investment earlier this year and a $ 200 million check. in August 2020. Gong is working in what he calls “the income intelligence” market when he lifted this June.

The sales software market has also seen exits recently, including a $ 575 million deal between ZoomInfo and the smaller Chorus.ai. Chorus had seen rapid revenue growth before its release, raising north of $ 100 million before selling to the bigger company.

LeadIQ has around 115 employees, its CEO said, a number he intends to double in the next 18 months or so. Today, these workers hail from 22 countries, making LeadIQ the embodiment of the now standard micro-multinational model that many start-ups pursue. Notably, LeadIQ has two main hubs, one in the United States and one in Singapore. Siauw says Europe could be next.

Now, with more funds than ever before, let’s see how quickly LeadIQ can grow its revenue over the next year. This next step should help us understand both whether the company will become an IPO contender and how deep its market really is.

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