Caffeinated & Coatue: Modern Sales Stack for Startups

RevOps Secures $5 Million to Simplify Sales Agreement Software for Startups

The development of internal sales agreement software – frequently referred to as quote-to-cash systems – represents a significant investment of both time and resources. RevOps is focused on alleviating this burden for rapidly expanding startups.

RevOps recently announced a successful oversubscribed seed round extension of $5 million. This funding was spearheaded by Caffeinated Capital, Coatue Management, and Gradient Ventures.

Investor Participation

Angel investors also contributed to the round, including Jeff Lawson of Twilio, alongside executives from prominent companies like Airtable, GitHub, and Twilio. This investment brings the company’s cumulative seed funding to $6.7 million.

Origins Rooted in Firsthand Experience

The founders of RevOps, Adam Ballai and John Solis, identified this challenge through their prior experiences at Twilio and PullString. Ballai previously led the development of Twilio’s billing software.

This software automated critical processes such as receivables, payables, reconciliations, and pricing engines, while simultaneously supporting the launch of numerous new products annually.

The Spreadsheet Problem

Despite these advancements, a considerable portion of deal management continued to rely on spreadsheets. Following his tenure at Twilio, Ballai joined Stripe, where he observed a similar reliance on manual spreadsheets.

After connecting with Solis, the pair conducted research into the time required to finalize pricing agreements. Their investigation revealed that the approval process often consumed significant hours.

Furthermore, many sales representatives, particularly those new to their roles, lacked a comprehensive understanding of crucial details like terms and conditions. They determined that much of this sales workflow could be streamlined through automation within the existing CRM systems.

RevOps' Solution: Automated Deal Management

RevOps has engineered a software platform that empowers users to construct the automated approval mechanisms – “the knobs and switches,” as described by Ballai – necessary for efficient deal closure.

The platform also facilitates the creation of a pricing calculator incorporating pre-defined terms and conditions, alongside customizable payment structures.

Headless Approach and Integration

By adopting a headless architecture for deal management, RevOps enables seamless integration with other operational tools as companies collaborate with their engineering teams.

Current Clients and Growth

Established in 2018, RevOps is currently serving a growing roster of startups, including Onna, Ketch, Stytch, Loom, and Retool.

Jonathan Krangel, Retool’s head of sales, success strategy and operations, stated, “We’re experiencing rapid growth as a company, and RevOps is helping us operationalize our sales infrastructure so we can feel confident about scaling quickly in 2022 and beyond.”

He further noted that RevOps is poised to become a vital component of their go-to-market strategy, integrating not only with their CRM but also with platforms like Slack, Stripe, and DocuSign.

Future Plans and Funding Allocation

Ballai intends to utilize the new funding to expand the company, focusing on building out the executive team and investing in research and development.

This R&D will prioritize further integrations and programs specifically designed for early-stage startups.

Significant Customer Growth

The funding arrives following a period of substantial growth for RevOps, with a 146% increase in customers between 2020 and 2021. Many clients are aiming to significantly expand their sales teams.

HubSpot Marketplace Integration

RevOps recently launched an agreement automation integration within the HubSpot marketplace, enabling users of the CRM to quickly generate quotes and finalize deals.

“We try to tackle the right product that is going to be most effective, and we have an amazing team that created a repository of features,” Ballai concluded. “Our goal is to help people have choice on how they have their quote-to-cash, a space that has not had innovation.”