Outreach has successfully raised $239 million over seven funding rounds, achieving a valuation of $1.1 billion. The platform is a market-leading sales engagement tool designed to enhance the productivity of sales teams.
Keep reading to explore the intricacies of Outreach's fundraising journey and the investors backing this innovative platform.
What Is Outreach?
Outreach, founded by Gordon Hempton, Wes Hather, and Manuel Medina, is a market-leading sales engagement platform. Established in Seattle, Washington, the company also has offices in San Francisco and Tampa.
With a focus on automating and prioritizing customer touchpoints, Outreach aims to enhance sales productivity and revenue. The platform leverages AI to provide performance insights, helping sales teams manage their interactions more efficiently.
Currently, Outreach employs between 201 and 500 people, reflecting its growth and commitment to scaling its innovative solutions. For more details, visit their official website or explore career opportunities on Wellfound.
How Much Funding Has Outreach Raised?
- Seed Round
- Amount Raised: $1,000,000
- Date: February 2013
- Motivation Behind the Round: To kickstart the development of their sales engagement platform.
- Seed Round
- Amount Raised: $2,300,000
- Date: May 2015
- Motivation Behind the Round: To develop and launch the sales automation platform, which initially attracted 200 customers.
- Series A
- Amount Raised: $9,200,000
- Date: October 2015
- Lead Investors: Mayfield, MHS Capital, Floodgate
- Motivation Behind the Round: To continue developing and expanding the sales automation platform, aiming to transform sales communication by streamlining manual processes and optimizing sales activities through data.
- Series B
- Amount Raised: $17,500,000
- Date: June 2016
- Lead Investors: Trinity Ventures, Microsoft Ventures
- Motivation Behind the Round: To expand engineering and marketing teams, develop automation and workflow technology, reach new customers, and accelerate growth in a competitive environment.
- Series C
- Amount Raised: $30,000,000
- Date: May 2017
- Lead Investors: DFJ
- Motivation Behind the Round: To hire more employees and scale marketing efforts.
- Series D
- Amount Raised: $65,000,000
- Date: May 2018
- Motivation Behind the Round: To continue the company's growth and development of its sales engagement platform.
- Series E
- Amount Raised: $114,000,000
- Date: April 2019
- Lead Investors: Lone Pine Capital
- Valuation at Round: $1.1 billion
- Motivation Behind the Round: To double the machine learning team, expand international footprint, and grow the partner ecosystem.
Outreach has raised a total of $239 million and is currently valued at $1.1 billion.
Key Investors
- Lone Pine Capital
- Details: Lone Pine Capital is a prominent investment firm known for its focus on both public and private equity markets. Founded by Stephen Mandel, the firm has a reputation for its strategic investments in high-growth companies.
- Investment Focus Areas: Technology, Consumer, Healthcare.
- Notable Investments: Airbnb, Instacart, Peloton.
- DFJ (Draper Fisher Jurvetson)
- Details: DFJ is a venture capital firm that invests in early and growth-stage technology companies. The firm has a history of backing transformative companies that have reshaped industries.
- Investment Focus Areas: Technology, Clean Energy, Healthcare, Consumer.
- Notable Investments: Tesla, SpaceX, Skype.
- Mayfield
- Details: Mayfield is a venture capital firm that focuses on early-stage investments. With a legacy of over 50 years, the firm has supported numerous successful startups.
- Investment Focus Areas: Technology, Healthcare.
- Notable Investments: Lyft, Poshmark, SolarCity.
- Microsoft Ventures
- Details: Microsoft Ventures is the venture capital arm of Microsoft, focusing on strategic investments that align with Microsoft's business interests. The fund supports startups that can leverage Microsoft's technology and market reach.
- Investment Focus Areas: Technology, Cloud Computing, AI.
- Notable Investments: InMobi, Layer, Zerto.
- Trinity Ventures
- Details: Trinity Ventures is a venture capital firm that invests in early-stage technology companies. The firm is known for its hands-on approach and long-term partnership with entrepreneurs.
- Investment Focus Areas: SaaS, Mobile, Social Media.
- Notable Investments: Starbucks, New Relic, Zulily.
What's Next for Outreach?
Outreach stands at the cusp of significant growth opportunities. With plans to double its machine learning team and expand its international footprint, the company aims to reach an annualized sales rate of $100 million. The platform's integration with major CRM tools like Salesforce and Microsoft Dynamics, along with its AI-driven capabilities, positions Outreach to capitalize on the increasing adoption of AI in sales.
Future fundraising rounds seem likely as Outreach continues to innovate and expand. The company's strong financial backing and market confidence suggest that additional investments could be on the horizon, enabling further development and market penetration. However, challenges such as competition from other AI-driven sales platforms and the need to maintain rapid growth could pose hurdles. Ensuring data security and compliance with regulations will also be critical as Outreach scales its operations.
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