Seattle-based Outreach, a startup that specializes in sales intelligence, said it’s valued at $4.2 billion after its latest round of financing, more than triple what it was worth last year.
The new $200 million investment was led by new investors Premji Invest and Steadfast Capital Ventures, with participation from Sequoia Capital, Tiger Global Management and private equity firm Vista Equity Partners. Premji Invest is a fund managed by the family office of Indian tech billionaire Azim Premji.
The jump in valuation reflects the growth the company has seen during the past year, said Chief Executive Officer Manny Medina who is also a co-founder. He said that “the pandemic almost did away with the on the field, on the road, sales rep job,” which resulted in more demand for technology to manage remote sales.
Outreach’s offerings include sales account data, revenue strategy and recruiting software.
Outreach’s clients include Adobe Inc., Cisco Systems Inc. and DoorDash Inc. The company has “well north of $100 million” in annual revenue, Medina added. The new capital will be used to grow the business and potentially for acquisitions.
There is a crowded marketplace of sales software startups, but that does not concern investor Karan Mehandru, at Steadfast Capital Ventures. “I think there’s going to be multiple winners in the category,” he said, referring to the market opportunity.
He characterized it as a modern day Salesforce.com Inc. “If (Salesforce CEO) Benioff were to start a sales company today, it would look a lot more like Outreach,” Mehandru added.
Outreach did not specify timing for an initial public offering but said one could be in its future, said Mehandru. “We do think going public is an important event in the company’s cycle.”
Existing investors including Salesforce Ventures, DFJ Growth, Mayfield Fund, Trinity Ventures, Sands Capital and Lone Pine Capital also participated in the round.