US-based sales software producer Outreach completed a $50m funding round yesterday featuring Salesforce Ventures, the corporate venturing arm of enterprise software provider Salesforce, that valued it at up to $1.33bn.
Growth capital firm Sands Capital led the round, which included Lone Pine Capital, Mayfield Fund, Meritech Capital Partners, Operator Collective, Sapphire Ventures, Spark Capital and Trinity Ventures. The company’s overall funding stands at $289m since it was founded in 2014.
Outreach has developed a software tool that leverages machine learning algorithms to help sales teams manage customer communications through email, phone calls and social media.
Manny Medina, Outreach’s co-founder and chief executive, said: “With this round of funding, we are excited to accelerate our investments to meet the increasing demand we are seeing in the market while continuing to innovate.”
More specifically, the money will go towards enhancing Outreach Kaia, the artificial intelligence-powered assistant the company rolled out last month, and to expanding its market presence in Europe, the Middle East and Africa.
Lone Pine Capital had led a $114m series E round for Outreach in April 2019 that included software producer Microsoft’s corporate venture capital unit, M12, as well as Lemonade Capital, Meritech Capital, DFJ Growth, Four Rivers Group, Mayfield, Sapphire Ventures, Spark Capital and Trinity Ventures.
The latter six had joined M12 (then Microsoft Ventures) and MHS Capital in a $65m series D round in mid-2018 that came after Outreach had collected $30m in a 2017 series C round led by DFJ that included M12, Four Rivers, Mayfield, MHS Capital and Trinity Ventures.
The company had previously secured $17.5m in series B funding from M12, Trinity Ventures and unnamed returning investors in 2016. Its earlier backers include Mayfield, Floodgate and MHS Capital.
