Gong Raises $250M Series E at $7.25B Valuation

Gong Secures $250 Million Funding at $7.25 Billion Valuation

Gong, a leading revenue intelligence platform, has announced a new round of funding totaling $250 million. This investment brings the company’s valuation to $7.25 billion, representing a threefold increase over its valuation from the previous summer.

Investment Details

Franklin Templeton spearheaded the current funding round, with significant participation from investors including Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger Global.

Last August, Gong secured $200 million at a $2.2 billion valuation. To date, the company has raised a total of $584 million, with $450 million arriving within the last twelve months.

Driving Investor Confidence

Investors are demonstrating substantial confidence in Gong’s ability to address a critical challenge: enhancing intelligence within the revenue generation process.

The company leverages artificial intelligence (AI) to analyze all customer interactions – encompassing sales calls, service interactions, and more – to identify key insights. This analysis determines factors such as purchase likelihood and potential customer churn.

Rapid Revenue Growth

CEO Amit Bendov affirms that the company’s performance strongly supports its current valuation. While specific financial figures remain undisclosed, he revealed that Annual Recurring Revenue (ARR) experienced a 2.3x growth between Q1 of the previous year and Q1 of this year.

Furthermore, Q2 performance is projected to result in a tripling of ARR.

“Our sales growth has exceeded the increase in valuation,” Bendov stated. “We are seeing strong adoption from large organizations, and the impact of the pandemic, initially uncertain, has proven positive for our business. Our financial metrics now justify our revenue trajectory.”

Expansion and Diversity Initiatives

Gong is experiencing rapid expansion, significantly increasing its workforce. The company concluded the previous year with 400 employees and currently employs approximately 550 individuals.

The goal is to reach a team of 950 by the end of the current year.

To support this growth, Gong has partnered with ReadySet, a consulting firm specializing in building diverse and inclusive workplaces. Bendov confirmed that Gong operates on a principle of equal pay for equal work.

Commitment to Inclusion

Currently, women comprise around 40% of Gong’s workforce, and Black employees represent approximately 4%. The company is actively working to increase the representation of Black employees, particularly through expansion of its Atlanta office.

In Israel, employment and training programs are being implemented to foster connections with the Arab community.

Bendov anticipates meeting with U.S.-based employees in the coming weeks during his first visit to the Atlanta office.