news: highspot Raised another big round, this time reeling in $248 million as part of a Series F round. It is now valued at $3.5 billion, which is 4 times more than in the last two years. The Seattle startup just raised a $200 million round less than it did a year ago.
Technique: HighSpot’s enterprise software aims to help salespeople be more efficient, equipping them with technology to improve the way they interact with potential buyers, among other features. Clients include giants such as DocuSign, Workday, Siemens, Adobe and others. The company declined to share specific revenue metrics for the past year.
Speed: The pandemic changed how salespeople do their jobs — and it’s a boon for HighSpot, which is seeing “incredible demand,” according to the CEO robert wahbe,
There are more deals happening on Zoom than in a conference room – “road warriors have become domestic warriors,” Wahbe said. And that change requires a different skill-set. “The seller needs to be better than ever to capture the attention of customers,” Wahbe said.
Wahbe said the shift to remote work will continue.
“This new world of work is relatively permanent,” he said. “Using technology to make sure your people have what they need to succeed is the new status quo.”
Market: The global sales enablement platform market stood at $1.7 billion in 2020 and is expected to grow to $7.3 billion by 2028. Verified Market Research, Showpad and Seismic are some of Highspot’s top competitors.
“Sales enablement is essentially a universal problem,” Wahbe said. “It’s an absolutely huge market across all industries, all geographies, and companies of all sizes.”
Future: Wahbe said HighSpot hasn’t spent more than the $200 million it raised last year. With the extra money now in its war chest, it has plenty of resources to gain more market share. The company plans to increase its international footprint and make significant investments in marketing and product.
Highspot employs 800 people and is expected to add 500 more this year. Even with the shift to remote work, HighSpot has added more floors to its headquarters space in Seattle that it opened in 2019.
“We can accommodate people in the office, we can accommodate people remotely, and we can accommodate full flexibility,” Wahbe said.
Investors: B Capital Group and D1 Capital Partners, both new investors, led the round. Other participants include ICONIQ Growth, Madrona Venture Group, Salesforce Ventures, Sapphire Ventures and Tiger Global Management, which this week led a big round for another unicorn Seattle startup, SeekOut.
The total funding to date is over $600 million. HighSpot is one of a handful of Seattle tech “unicorns,” or companies worth more than $1 billion.
the founders: He is a former long-time employee at Microsoft, where he spent 16 years with the information sales teams needed to help them craft the right pitches to potential customers. He founded the company in 2011 with former associates oliver sharp And David Wortendike,
Secret Chutney: When asked about the keys to HighSpot’s growth, Wahbe offered some startup lessons. First and foremost, he said it was about the team. “No matter how great your ideas, you need the right people,” he said.
Another important focus: securing product market fit, especially before you’ve raised a bunch of cash. “It’s a really important thing to be really frugal before you have a product market fit,” Wahbe said.
And finally: scale fast.
“In the new world where there is a lot of money to chase good teams and good customer value, there is a perception that you need to grow fast and win the market,” he said. “Compared with being one of many players in the market, winning the market has massive returns. And it requires capital and management.”