The world has been turned upside down the past couple of weeks, however one lesson of organisation remains as crucial as ever: treating your consumers well is the very best avenue to future organisation strength, especially at a minute of severe stress.
As organisations concerned terms with the economic crisis underway, executives are moving resources from client acquisition to client retention– and that’s proving very profitable to startups that service the consumer success market.
Case in point: New York City-based Catalyst, which I profiled simply last summertime following its $15 million Series A led by Accel’s Vas Natarajan, has actually seen big earnings development the past couple of months. The data-driven client success platform has actually seen its profits grow by 380% considering that the Series A funding according to CEO Edward Chiu.
Steep income growth is (unsurprisingly) attractive to financiers, and in a minute of fortuitous timing, the business signed a $25 million Series B term sheet with Spark Capital simply as the COVID-19 crisis was getting underway.
Chiu said Driver wasn’t looking for the investment, having much of its Accel round still in the bank, however he eventually decided that having the additional capital in hand through a looming financial recession was the right choice. The capital formally hit the savings account at the end of March, and was led by the company’s development investor Will Reed.
While the company didn’t divulge the valuation, a source with knowledge of the matter priced estimate an assessment of $125 million. That’s a serious appraisal for a business that launched simply 2 years earlier in April of 2018.
Outside of more funding, the core story of the business’s product remains the very same. Driver wants to unite all the data sources and employee who engage with consumers– everyone from designers and engineers to consumer success supervisors– into one control panel to make sure that everybody has updated and accurate access to all the details they require on the health of every customer.
One growth area that the business is checking out outside of the B2B space of its existing customers remains in healthcare, where the company has seen some incoming interest. Chiu states that Catalyst is exploring the actions needed to reach HIPAA compliance with its platform, and wants to broaden to more sectors over time with the capital from its Series B.
Image by means of Driver. When we last signed in with the company, Driver had 19 employees and was targeting 40 workers by July 2020. Chiu said that Catalyst is currently at 35 employees, and will likely hit 60 to 70 workers by the end of the year.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.