Outreach Named to the 2019 Forbes Cloud 100

The Forbes Cloud 100, produced by Forbes in partnership with Bessemer Venture Partners and Salesforce Ventures, showcases private cloud …

SEATTLE, Sept. 12, 2019 /PRNewswire/ — Outreach, the leading sales engagement platform, has been named to the 2019 Forbes Cloud 100 – recognized as one of the top private cloud companies in the world. The Forbes Cloud 100, produced by Forbes in partnership with Bessemer Venture Partners and Salesforce Ventures, showcases private cloud companies that stand out for their growth, sales, valuation, and culture. This year’s ranking marks the company’s third appearance on the coveted list.

Outreach has experienced incredible growth and a rapid trajectory. The company achieved “unicorn” status, achieving a valuation of over $1B in April 2019 – which Forbes predicted when it called out the company as one of its “Next Billion Dollar Startups” in 2017. Outreach has been doubling revenue every year for the past three years and now has more than 3,500 customers, from fast-growing startups to Fortune 500 enterprise companies.

“While growth is clearly exciting and an important milestone, what is truly rewarding for me – and our employees – is how Outreach is fundamentally changing the way companies, and their sales teams, engage with current and potential customers,” said Manny Medina, CEO of Outreach. “By applying machine learning and AI, we are able to offer real-time insights, resulting in dramatic increases in sales productivity with more deals closed and happier, engaged customers. We are grateful to Forbes and its partners for recognizing our market leadership as we continue to deliver the innovation and results our customers have come to expect from Outreach.”

As part of the rigorous selection process for the Forbes 2019 Cloud 100, Bessemer Venture Partners received submissions from hundreds of cloud startups. The judging panel, made up of public cloud company CEOs, reviewed the data to select, score, and rank the top 100 private cloud companies from all over the world. The evaluation process involved ranking companies across four factors: market leadership (35%), estimated valuation (30%), operating metrics (20%), and people & culture (15%).

“The private cloud ecosystem has matured, making the competition to land one of the coveted spots on the Cloud 100 list steeper than ever,” said Byron Deeter, a top cloud investor, and partner at Bessemer Venture Partners. “In fact, the average valuation of a company on our inaugural list just four years ago was $1 billion, while this year’s list spiked to $1.7 billion. Our 2019 Cloud 100 includes over 60 private cloud unicorns. Congratulations to these cloud leaders!”

“The growth we are seeing is not limited to the Bay Area, as we are seeing more $1B+ cloud companies spring up throughout the U.S. and globally,” said Matt Garratt, Managing Partner, Salesforce Ventures. “We are excited to be partnering with Bessemer Venture Partners and Forbes for the fourth year to recognize the next generation companies who will land on the Cloud 100 list—those who are not just predicting what’s coming but working to create the future.”

“For four years now, we have ranked the best and brightest emerging companies in the cloud sector,” said Alex Konrad, Forbes editor of The Cloud 100. “With so many businesses growing fast in the cloud, from cybersecurity and marketing to data analytics and storage, it’s harder than ever to make the Cloud 100 list. Congratulations to each of the 2019 Cloud 100 honorees and the 20 Rising Stars honorees poised to join their ranks!”

The 2019 Forbes Cloud 100 is published online at www.forbes.com/cloud100 and will appear in the September 2019 issue of Forbes magazine.

About Outreach

Outreach, the leading sales engagement platform, dramatically increases sales reps’ effectiveness using advanced machine learning and artificial intelligence capabilities to automate and prioritize customer touchpoints. Outreach has 3,500 customers such as Adobe, DocuSign, and Tableau, who’ve seen significant increases in sales pipeline, velocity, and efficiency. Outreach is a privately held company based in Seattle, Washington. To learn more, please visit www.outreach.io.

Media Contact:

Amanda Woolley

PR@outreach.io

SOURCE Outreach

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Seattle’s Outreach Joins Unicorn Ranks With $114M Funding Round

… Four Rivers Group, Lemonade Capital, Mayfield Fund, Meritech Capital Partners, Microsoft Ventures, Sapphire Ventures, Spark Capital, and Trinity …

Another tech “unicorn”—privately controlled startups valued at $1 billion or more—has been minted following sales software company Outreach’s latest venture funding round, a $114 million deal.

Seattle-based Outreach develops customer relationship management tools designed to improve communication between salespeople and their prospective clients. Launched in 2013, the startup says its most recent round of financing values Outreach at $1.1 billion and brings its total funding haul to $239 million.

Greenwich, CT-based Lone Pine Capital led the round, Outreach says. According to a news release, other participating investors included: DFJ Growth, Four Rivers Group, Lemonade Capital, Mayfield Fund, Meritech Capital Partners, Microsoft Ventures, Sapphire Ventures, Spark Capital, and Trinity Ventures.

Outreach says it plans to use some of the proceeds from the round to continue developing its products and services. It also anticipates expanding to 450 employees from its current headcount of 315 by year-end, according to a spokesperson for the startup. Part of that expected growth involves doubling the size of its machine learning team, Outreach says.

The organizations currently using Outreach’s software employ a combined 50,000 salespeople, the company says.

“This funding will enable us to continue innovating directly for the end user, using the latest in machine learning and natural language processing to deliver a platform that is easy to use and provides immediate value,” Outreach CEO Manny Medina says in a prepared statement.

Outreach’s software is designed to help users increase volumes of sales calls and emails by automating some of their interactions with current and prospective customers.

The tools can be configured to integrate with other software applications, Outreach says. Compatible products include digital tools developed by Boston-based Drift, as well as Microsoft’s (NASDAQ: MSFT) Dynamics 365 for Sales.

Outreach last raised money from investors in May 2018, when it announced a $65 million round of funding. Under the terms of that deal, investors reportedly valued Outreach at $435 million.

Thirty-eight technology and internet unicorns went public in 2018, a “near-record pace” for such companies, according to a Wall Street Journal report. The group includes Seattle-based Avalara (NYSE: AVLR), which went public in June.

The pattern of unicorns holding initial public offerings has continued this year; one recent IPO was held by Lyft (NASDAQ: LYFT), which was reportedly valued at $15.1 billion by its VC backers last year. Others planning IPOs include Uber, Pinterest, and Zoom Video Communications.

In addition to Outreach, other Seattle-area unicorns include Convoy and OfferUp, according to research firm CB Insights.

Jeff Buchanan is the editor of Xconomy Seattle. Email: jbuchanan@xconomy.com Follow @_jeffbuchanan

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Future unicorns: Algorithm predicts the next $1B companies, including one Seattle startup

It identified candidates using CB Insights‘ Mosaic algorithm, which analyzes the health of a startup based on various data including strength of market, …
Sales automation startup Outreach was the only Seattle company to make CB Insights’ list of future unicorns. (Outreach Photo)

Can algorithms predict the next billion-dollar companies better than human venture capitalists? It seems possible, at least based on a formula created by CB Insights and The New York Times.

Back in 2015, the companies published a list of 50 startups that would eventually becomes “unicorns,” or those valued at $1 billion or more. It identified candidates using CB Insights’ Mosaic algorithm, which analyzes the health of a startup based on various data including strength of market, financial performance, and overall traction — a “FICO score for startups,” as described by the investment data firm.

Fast forward to today, and 48 percent of the companies on the 2015 list are now considered unicorns. “At the risk of sounding immodest, that is pretty good,” CB Insights wrote this month. “And if we were a venture firm, this kind of hit rate would make us legendary.”

That’s why it’s worth giving the 2019 list a look.

(CBInsights Photo)

The 50 future unicorns hail from various industries and the median company has about $111 million in total funding. A majority are based in the U.S., with 22 from California, five in New York, and two in Massachusetts.

Outreach CEO Manny Medina. (Outreach Photo)

There is just one from Seattle: sales automation startup Outreach, which raised $65 million this past spring, announced it was moving into a new headquarters space this summer, made its first acquisition, and was the only Seattle company to crack the top 25 in LinkedIn’s Top Startups list for 2018.

Outreach CEO Manny Medina said the company more than doubled its revenue in 2018 and met all goals and metrics. Outreach now has more than 3,100 customer accounts and 50,000-plus users. It employs 315 people and plans to reach 450 by the end of 2019.

“This upcoming year we will make more investments in scaling the business efficiently and prepare for an IPO a few years out,” Medina told GeekWire. “This includes continued investment from our product to support, measure, and automate customer facing workflows. Our job is to make all sales reps great and drive higher revenue efficiency for their companies.”

The 5-year-old sales engagement platform uses machine learning to help customers such as Cloudera, Adobe, Microsoft, Docusign, and others automate and streamline communication with sales prospects.

Medina, a former director at Microsoft, originally launched a recruiting software startup called GroupTalent in 2011 with his co-founders Andrew Kinzer, Gordon Hempton, and Wes Hather. But the entrepreneurs pivoted in 2014 to focus on building tools for salespeople.

Chris DeVore, managing director at Techstars Seattle — Outreach was a 2011 graduate of the accelerator — said the company is a good example of why he focuses on investing in people over ideas.

“Outreach is one of my favorite stories,” DeVore told GeekWire last week. “The business they set out to build wasn’t working, but because they stuck together as a founding team and kept adapting and learning, they figured out how to find a productive thing. But that wasn’t because of where they started or the early metrics. It was because as humans, they were so committed and resilient and so gritty that they figured it out.

“And that’s really what you’re betting on,” DeVore continued. “It’s a 10-year journey and it’s never always up and to the right. There are always setbacks and near-death moments. It’s the human capacity for resilience and persistence every time that will turn a bad investment into a good one.”

While it’s a safe bet to invest in tenacious and dogged founders, CB Insights’ track record with its Mosaic score shows how data-driven formulas can drive smart investment decisions.

That strategy has worked well for firms such as Seattle-based Lighter Capital, an online revenue-based funding vehicle that uses proprietary technology to figure out which companies to back. Lighter Capital has invested in more than 300 companies across 500 deals since 2012 and plans to invest in close to 200 startups this year, CEO B.J. Lackland told GeekWire last month.

A recent PitchBook study found that 38 percent of venture capitalists use data to source and evaluate investment opportunities.

“Our survey shows strong adoption of data to inform investment decision-making and a growing appetite to increase usage,” Steve Bendt, vice president of marketing at PitchBook, said in a statement. “While the majority of respondents believe VC investing will always involve the human element, there’s enthusiasm to explore how machine learning can automate traditional VC.”

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Outreach Secures $65 Million In Series D Funding To Increase Revenue Team Productivity And …

The round was led by Spark Capital and includes investment from Sapphire Ventures as well as from existing investors DFJ Growth, Four Rivers …

Outreach’s Customer Engagement Platform provides the entire revenue team – from sales development representative to account executive to customer success manager – with a system for managing and automating interactions throughout the customer lifecycle. Outreach also records data about each interaction and uses analytics and machine learning to surface insights and recommendations that drive increased efficiency and effectiveness.

“The customer engagement category is experiencing explosive growth, due in large part to high rates of usage, a rarity for enterprise software which is often used as a data repository or even worse, purchased and forgotten,” said Manny Medina, CEO and co-founder of Outreach. “Our north star isn’t number of customers, it’s number of Weekly Active Users. This metric is proof we have created a technology that not only drives revenue, but also is viewed as indispensable to every member of the revenue team.”

Outreach’s new financing will be used to accelerate product development, with a specific focus on machine learning and extending the platform beyond the sales team to every customer-facing role. Outreach recently announced Amplify, a program that uses machine learning to scientifically test, measure and optimize the performance of sales teams, while also automating non sales-related tasks. The company also hired Pavel Dmitriev, former Principal Data Scientist, Analysis and Experimentation at Microsoft and one of the few world experts in large scale experimentation, to lead its data science team.

“Outreach has been instrumental in creating and evolving the customer engagement category, which is growing at an exponential rate,” said Alex Clayton, Investor at Spark Capital. “Outreach’s technology, approach and leadership team make it poised to capture this multi-billion dollar opportunity and we are excited to have the company as part of our portfolio.”

“Customer Engagement is a rapidly growing market and Outreach is the dominant player in the enterprise, where they continue to gain momentum,” said Rajeev Dham, Sapphire Ventures Partner. “With our deep enterprise relationships and our proven history of taking companies public, this is an ideal partnership. We look forward to joining Outreach on their journey to become the next category-defining software company.”

Outreach, which has been recognized by Forbes as one of its “Next Billion Dollar Startups”, closed FY2018 up 100+ percent and now has 245 employees (doubled FY2018 to FY2019). The company supports more than 2,400 sales teams and 22,000 users worldwide. Outreach was also recently named one of Seattle Business Magazine’s Best Places to Work and one of the 50 Highest Rated Private Cloud Computing Companies to Work For by Battery Ventures.

About Outreach

Outreach, the leading Customer Engagement Platform, manages and automates customer interactions throughout the customer lifecycle, resulting in increased productivity and revenue lift. Thousands of customers rely on Outreach to transform the sales process, drive collaboration across the revenue team, and deliver higher revenue per sales and customer success rep. Outreach is a privately held company based in Seattle, Washington. To learn more, please visit www.outreach.io.

About Spark Capital

Spark Capital is a venture capital firm that invests in startups led by creative thinkers. It partners with entrepreneurs who make products and services for consumers as well as business people. It has offices in SoMA in San Francisco, Astor Place in New York City, and the Back Bay in Boston. Spark Capital was founded ten years ago. In total it manages five funds with $3B under management. For more information, please visit http://www.sparkcapital.com.

Media Contact:

Jennefer Traeger

Traeger Communications

720-988-6149

jtraeger@traegercommunications.com

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