6sense Secures $125M Funding at $2.1B Valuation

The Growing Influence of AI in Sales Technology

Artificial intelligence is rapidly becoming a vital component in the development of sales tools. These technologies are designed to enhance the capabilities of skilled sales professionals and improve organizational efficiency. In certain instances, like with the implementation of chatbots, AI is even leading to the replacement of traditional roles.

6sense Secures Significant Funding

6sense, a leading innovator in leveraging AI to optimize sales and marketing processes, has recently announced a substantial funding round. This investment highlights the increasing acceptance and effectiveness of AI-powered solutions within the sales sector.

The company has successfully raised $125 million, resulting in a valuation of $2.1 billion. This Series D funding round was spearheaded by D1 Capital Partners, with participation from Sapphire Ventures, Tiger Global, and existing investor Insight Partners.

Expansion and Predictive Capabilities

The acquired capital will be strategically allocated to broaden the company’s platform and refine its predictive analytics across a more extensive array of data sources.

This represents a considerable increase in funding for 6sense when contrasted with its previous raise in late 2019. At that time, a $40 million investment valued the company at $300 million, as reported by PitchBook data.

Rapid Growth and Customer Base

This growth isn't surprising, given the current climate of “digital transformation” and the need for improved remote work tools, particularly for sales teams. 6sense is experiencing its fourth consecutive year of growth exceeding 100%, having added 100 new clients in the final quarter of the previous year.

The company serves a diverse clientele, including small, medium, and large enterprises, with notable customers such as Dell, Mediafly, Sage, and SocialChorus.

Addressing Data Silos in Sales

6sense addresses a common challenge faced by sales teams: the fragmentation of crucial customer data. Information often resides in disparate systems – including CRM platforms, external databases, and social media channels – creating inefficiencies.

Rather than building a comprehensive data management system from scratch, 6sense offers a solution for integrating and analyzing data from various sources. This provides a holistic view of companies and potential targets within those organizations.

Tracking Anonymous Buying Behavior

The platform tackles complex issues like tracking “anonymous buying behavior” and linking it to specific customer identities. It also prioritizes accounts based on their likelihood to purchase and facilitates the planning of multi-channel marketing campaigns.

The "ID Graph" Technology

6sense has patented its core technology, which it refers to as an “ID graph.” This concept is analogous to the social graph utilized by Facebook or the knowledge graph developed by LinkedIn, but tailored for sales applications.

Importantly, 6sense’s tools are designed for both sales and marketing teams, recognizing the increasing collaboration between these departments.

Introducing "Revtech"

Jason Zintak, CEO of 6sense, who brings extensive sales experience to the role, has coined the term “revtech” to describe the company’s approach. This refers to technologies aimed at organizations focused on revenue generation.

“Our AI concentrates on identifying companies actively seeking to make a purchase,” Zintak explained. “Once identified, effective sales engagement can commence.”

Investor Confidence

This focused approach and demonstrated success with customers have attracted significant investor interest.

“Thorough customer interviews are a key part of our investment process, and the feedback regarding 6sense is exceptionally positive,” stated Dan Sundheim, founder and chief investment officer at D1 Capital Partners. “Improving revenue outcomes is a universal goal, but achieving it is often difficult. 6sense consistently delivers value to its customers, establishing itself as a vital solution for B2B revenue teams.”

The Power of Predictive AI

Teddie Wardi at Insight emphasizes that the AI and predictive capabilities inherent in 6sense’s technology – a consistent feature since its inception – are key differentiators.

“While AI is often overused as a buzzword, it is integral to 6sense’s solution and the foundation of the platform,” he noted. “Instead of relying on broad marketing funnels, 6sense focuses on connecting with the right individuals at the optimal time and in the most relevant context, enhancing both sales and marketing effectiveness. The AI component is what truly drives this capability, constructing the buyer journey and informing sales teams when to initiate contact.”