Conductor Raises $150M to Revolutionize Organic Marketing

Conductor Secures $150 Million in Funding Following Independence

Conductor, a marketing technology firm previously acquired and then re-acquired following the challenges faced by WeWork, has announced its first funding round as an independent entity. The company has successfully raised $150 million.

These funds will be strategically allocated to further development of its technology and expansion of its business operations. Conductor focuses on an organic marketing platform designed for SEO, content, and web marketing teams.

Valuation and Investment Details

According to CEO and co-founder Seth Besmertnik, the funding round was spearheaded by Bregal Sagemount and valued the company at $525 million post-money. This represents significant growth compared to the $3.5 million valuation during the prior management buyout.

Approximately half of the investment will be distributed as secondary shares to the company’s employee-owners, while the remaining half constitutes new equity for business investment.

A Look Back at Conductor’s History

Conductor initially attracted WeWork’s attention in 2018 due to its existing relationship as a key customer. WeWork utilized Conductor’s technology to identify business needs related to office space.

This partnership proved highly effective, leading WeWork to consider acquiring Conductor to extend its marketing capabilities to its customers, aiding them in establishing both virtual and physical presences.

Besmertnik explained that the acquisition also held appeal for Conductor, given its existing enterprise clientele and the potential for WeWork to broaden its reach.

Navigating WeWork’s Challenges and Reclaiming Independence

However, the anticipated synergies didn't fully materialize. Fortunately, the acquisition didn't impact Conductor’s core business. When potential layoffs loomed during WeWork’s restructuring, Besmertnik and his team initiated a buyout to ensure the company’s survival.

Re-established as an independent entity in 2019, Conductor retained its customer base and has since expanded it to include prominent names like Microsoft, GlaxoSmithKline, and AT&T, alongside Visa, Twitter, Comcast, and LG – totaling over 450 major clients.

Conductor’s Technology and Competitive Landscape

Conductor’s platform serves as a comprehensive tool for marketers, integrating with numerous data sources and platforms for campaign management and analysis. These integrations include tools like Dragon Metrics, Google Trends, and SEMrush, as well as project management systems like Jira and Asana.

The company’s focus on search marketing is increasingly relevant in today’s digital environment. Growing concerns around data privacy and the rise of “walled gardens” within apps like TikTok and Instagram limit marketers’ visibility into user behavior.

The Power of Search

Search provides a unique window into user intent, as Besmertnik stated, “No one ever lies to a search engine.” He emphasized that despite the growth of social media, search remains fundamental for information seeking and purchasing decisions.

The increased reliance on online activities, accelerated by the COVID-19 pandemic, has further boosted the importance of search and, consequently, Conductor’s business.

“COVID has hit the accelerator on digital for many companies,” Besmertnik noted. “A great digital experience is no longer enough; it must be discoverable.”

Standing Out in a Competitive Market

While numerous martech companies specialize in search, including SEMrush, Botify, and BrightEdge, Conductor differentiates itself through its established customer base and proven track record.

Bregal Sagemount partner Michael Kosty affirmed Conductor’s leadership position, stating, “The feedback we heard from Conductor’s customers and the market was definitive — Conductor is the leader in organic marketing.” He will be joining the board of directors as part of this investment round.