Venture Capital News: Demandbase Raises $30M
SAN FRANCISCO, CA, Leader in account-based marketing, announced today that the company has raised $30M in growth equity financing in a round led by Sageview Capital.
SAN FRANCISCO, CA, Demandbase, the leader in account-based marketing, announced today that the company has raised $30 million in growth equity financing in a round led by Sageview Capital. The financing round includes participation from existing investors Adobe Systems, Altos Ventures, Costanoa Venture Capital, Greenspring Associates, Salesforce.com Ventures, Scale Venture Partners and Sigma West, and brings Demandbase's total funding to more than $90 million. With this investment, Ned Gilhuly, founding partner of Sageview Capital, will join the Demandbase board of directors.
Demandbase is the market leader in account-based marketing (ABM), which is transforming the $35 billion digital B2B marketing space. Unlike marketing approaches that focus on quantity over quality, ABM enables B2B companies to identify and target the accounts they value most, and then market to them across the entire funnel - from awareness to pipeline to revenue. According to a SiriusDecisions report from May 2015, more than 60 percent of companies plan to invest in ABM-specific technology over the next 12 months. Moreover, 85 percent of that investment is planned for account-based advertising and website personalization.
Demandbase will use the additional funds to accelerate growth in the U.S. and abroad in this rapidly growing category. Demandbase also plans to explore acquisition opportunities to bolster its proprietary B2B data assets and real-time identification technology.
'We already see customers spending 10X more on ABM than they spend on Marketing Automation tools, and the category will continue to explode over the next several years,' said Chris Golec, CEO of Demandbase. 'The additional $30 million investment will allow us to capitalize on this market trend faster and commercialize several ground-breaking innovations in ABM to help keep our customers ahead of their competition.'
Growth at Demandbase has continued to accelerate in 2015. Demandbase's platform offers the only solution that makes it possible to connect hundreds of advertising exchanges, dozens of content management and marketing automation solutions with sales activity in CRM systems, at scale, for thousands of target accounts. In the first half of the calendar year, the company experienced revenue growth in excess of 80 percent, posted retention rates above 120 percent, underscoring best-in-class customer satisfaction, and secured many new multi-billion dollar clients from the biotech, manufacturing, hi-tech and telecommunications industries.
'Demandbase impressed us with its leadership position in the expanding ABM category, blue chip enterprise customer list, and best-in-class metrics in terms of growth and retention,' said Ned Gilhuly, founding partner of Sageview Capital. 'Sageview is focused on providing growth capital to leading companies with a demonstrated track record of success and compelling market opportunity. Demandbase is a strong addition to our portfolio, and we are excited to partner with its management team to pursue additional growth initiatives and extend the company's market leadership.'
Demandbase, the leader in account-based marketing, enables B2B companies to identify and target the accounts they value most, and then market to them across the entire funnel. The Demandbase B2B Marketing Cloud is the only subscription-based ad targeting and web personalization solution that lets marketers connect campaigns directly to revenue. The B2B Marketing Cloud is powered by patented technology, which allows companies to identify the accounts they value most and personalize their digital marketing efforts to them. With Demandbase, businesses can target, engage, convert and retain the customers that matter most to their bottom line. Enterprise leaders and high-growth companies such as Adobe, Salesforce.com, Box, CSC, DocuSign, Dell and others use Demandbase to drive account-based marketing and maximize their marketing performance. More information can be found at http://www.demandbase.com.
About Sageview Capital
Sageview Capital LP is a private investment firm providing growth capital to small and mid-sized companies in the technology, business services, and financial services sectors. The firm's investments include Alfresco, Avalara, EverBank Financial, GoPro, MetricStream, Reflexis and United Capital, among others. Sageview was founded in 2006 by Ned Gilhuly and Scott Stuart, both formerly partners of Kohlberg Kravis Roberts & Co. (KKR), and the firm has offices in Greenwich, Connecticut and Palo Alto, California. For more information, visit www.sageviewcapital.com.
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