HiTouch Secures Third Funding Round in 12 Months

Hightouch Secures $40 Million Series B Funding

Less than one year following its initial public launch, Hightouch, a SaaS provider specializing in customer data synchronization for sales and marketing applications, has announced its third round of funding.

This $40 million Series B investment was spearheaded by ICONIQ Growth, with participation from existing investors including Amplify Partners, Bain Capital Ventures, Y Combinator, and Afore Capital.

Investor Participation

Notable angel investors contributing to this round encompass Ramp founder Gene Lee, Monte Carlo founder Barr Moses, Airflow creator Maxime Beauchemin, and Alex Pall of The Chainsmokers.

This latest funding arrives just four months after a $12.1 million Series A round led by Amplify, bringing Hightouch’s total funding to $54.2 million and establishing a post-money valuation of $450 million.

Democratizing Data Access

Hightouch was established by Kashish Gupta, Josh Curl, and Tejas Manohar with the goal of making data universally accessible, eliminating the need for dedicated engineering teams.

The company’s inaugural product, Reverse ETL, facilitates access to data traditionally confined to dashboards, integrating it directly into everyday operational tools such as customer relationship management (CRM) systems.

Platform Enhancements and Growth

Since its launch, Hightouch has prioritized enterprise clients, implementing robust access control features and completely rebuilding its platform to efficiently manage the substantial data volumes processed daily by Fortune 500 companies, as stated by Gupta.

Recent achievements include forging a partnership with Snowflake for data warehousing, launching Hightouch Audiences – a feature enabling users to control data flow into their tools – and expanding its customer base to hundreds.

The company has also experienced significant team growth, increasing from four to 40 employees, and has tripled its revenue.

Unsolicited Investor Interest

Accelerated inbound inquiries from both investors and customers prompted the fundraising process, despite Hightouch not actively seeking capital, according to Gupta.

“The exceptional customer feedback, strong product-market fit, favorable market conditions, and the team we’ve built attracted multiple venture capital firms eager to lead the round, even with substantial funds already available,” Gupta explained.

“We ultimately chose ICONIQ Growth, a firm we highly respected, and accepted a valuation that made raising funds at this time advantageous. However, we wouldn’t have pursued funding if we hadn’t found the ideal partner.”

Future Plans and Market Outlook

Hightouch intends to allocate the new funds to broaden the reach of its Reverse ETL solution and anticipates doubling its workforce within the next year.

Further investment will be directed towards enhancing the core developer experience and expanding product accessibility across various departments, beginning with marketing and extending to sales, customer success, and support.

The Nascent Modern Data Stack

Gupta views the modern data stack – the collection of software tools for data management – as still developing compared to more established developer tooling.

Companies in this sector “are currently achieving high valuation multiples relative to traditional SaaS businesses because investors are focusing on the potential future growth of the market, rather than solely on the growth of existing companies within it,” he noted.

Data is increasingly recognized as a key competitive advantage, and organizations are seeking to avoid data silos within business intelligence tools or third-party platforms like CRMs and CDPs.

“Companies are prioritizing ownership and analysis of their data in a centralized location, leveraging it to personalize customer interactions across all business tools,” Gupta added.

“The prevailing trend is a fragmentation of the data and marketing technology landscapes, as businesses favor selecting specialized solutions for each task over all-encompassing, yet less effective, platforms.”