Correlated on Wednesday announced it raised $8.3 million in seed funding to launch its product-led growth platform for sales teams.
NextView Ventures led the round and was joined by Harrison Metal, Apollo Projects, Attentive co-founders Brian Long and Andrew Jones, Cockroach Labs co-founder Ben Darnell and Atrium’s Pete Kazanjy. The round includes funding raised last year and more recent follow-on funding from both NextView and Harrison, co-founder and CEO Tim Geisenheimer told TechCrunch.
The New York-based company was founded in 2020 by Geisenheimer and Diana Hsieh, who overlapped at TimescaleDB, and John Pena, who Geisenheimer met at Facet. In their previous roles, they saw a need to connect product data to sales tools.
While at Timescale, Geisenheimer said there were thousands of free users to talk to, and he and Hsieh built a similar version of a product-led growth platform there, but secretly wished there was something more like Correlated available.
What they saw was data across multiple tools being stored manually on spreadsheets so that actionable insights could be generated. The data would quickly become outdated. Add in that the way customers use products now is different. Traditionally, customers would not be able to use a product until they talked to the sales team. Today, customers start using products for free and either get value from it or not, but sales teams don’t have real-time data on their experience.
“Sales needs to know how customers are using the product and the right time for sales to engage based on maturity of the experience,” Geisenheimer said. “That was the missing piece of it and sales teams ended up talking to the wrong people. With Correlated, they can close more deals efficiently.”
Correlated’s technology pulls in product usage data from tools and data warehouses and connects to a management platform like Salesforce or HubSpot, stitching it together into a data graph to show how customers are using a product. For example, within a company of 200 to 500 employees, a salesperson can see the frequency employees logged in and be alerted of when the best opportunity is to make the sale.
The company has a SaaS pricing model and is already working with mid-market companies like Ally, Pulumi, ReadMe and LaunchNotes. To support its launch out of beta, Geisenheimer intends to use the new funding for hiring across functions like engineering and go-to-market. The company has 11 employees currently.
There are other product-led growth platforms out there that raised venture capital funding recently, for example, Endgame, and similarly Geisenheimer said the competition is often in-house product teams building their own systems. Correlated’s differentiator is that it has taken on that task itself and enables customers to quickly see value once they are up-and-running, he added.
David Beisel, co-founder and partner at NextView Ventures, said his firm invests in category stage companies and is currently operating out of its fourth fund, infusing business-to-business SaaS and e-commerce companies. Beisel has known Geisenheimer for nearly a decade now, having met him when NextView invested in one of Geisenheimer’s previous companies, TapCommerce.
“At the end of the day with Tim, he knows sales and the company is selling a product that has a strong founder market fit,” Beisel said. “We are moving toward a world where end-user adoption of software — not the initial engagement — is growing over time. Instead, Correlated empowers that initial sale and account expansion and that will align with where the industry is going.”
source https://techcrunch.com/2021/08/04/product-led-revenue-startup-correlated-launches-with-8-3m-seed/
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