Leadiq Secures Venture Funding Amidst Booming Sales Software Market

LeadIQ Secures $30 Million in Series B Funding

LeadIQ, a company operating within the sales software sector, has announced the successful completion of a $30 million Series B funding round. Cathay Innovation spearheaded the investment. Additional participation came from Fresco Capital, Strong Ventures, and Eight Road Ventures.

Addressing Missed Revenue Opportunities

LeadIQ positions its offerings as a solution to the prevalent issue of unrealized revenue potential within businesses. The company asserts that approximately two-thirds of current sales deals are negatively impacted by this problem. Its core function is to streamline the sales process by automating lead capture and reducing the manual data entry burden on sales teams.

The platform also provides detailed analytics regarding prospecting effectiveness. These insights can be analyzed based on individual employee performance, as well as broader criteria like industry and company size.

Strategic Funding and Expansion Plans

Prior to this round, LeadIQ had secured approximately $12 million in funding, but had only utilized $6 million of that amount. Despite already achieving an eight-figure Annual Recurring Revenue (ARR) – exceeding $10 million – the company opted to raise additional capital.

According to CEO and co-founder Mei Siauw, this decision stems from a strategic shift towards supporting account management, extending beyond simple lead management. Developing these new capabilities requires significant investment in personnel and resources.

Bridging the Gap Between Sales and Marketing

The move towards account management is intended to foster closer collaboration between sales and marketing departments. This integration aims to facilitate more comprehensive information sharing, ultimately leading to improved sales outcomes. Siauw illustrated this by comparing marketing to casting a wide net, while sales is a more targeted, spear-fishing approach.

Enhanced information sharing at the account level, she believes, will empower sales teams to increase their success rate.

Impressive Growth Metrics

LeadIQ has demonstrated notable financial performance. The company’s ARR has grown by approximately 3x over the past year. Furthermore, it boasts a net retention rate of around 125% and a favorable ratio between account size and customer acquisition costs – key indicators valued by SaaS investors.

A Thriving Sales Software Market

This funding round highlights the current dynamism within the sales-focused software market. Other companies in the space, such as Gongo.io, have also recently secured substantial funding, including a $250 million investment earlier this year and a $200 million investment in August 2020.

Gong operates within the “revenue intelligence” market.

Recent Exits Demonstrate Market Value

The sales software sector has also witnessed recent acquisitions, notably the $575 million deal between ZoomInfo and Chorus.ai. Chorus.ai had experienced rapid revenue growth prior to its acquisition, having raised over $100 million in funding.

Global Team and Future Growth

LeadIQ currently employs approximately 115 individuals, distributed across 22 countries. The company intends to double its workforce within the next 18 months. It operates with a distributed team model, maintaining key hubs in the United States and Singapore, with potential expansion into Europe.

With its increased funding, LeadIQ will focus on accelerating revenue growth. Future performance will provide insights into the company’s potential for an Initial Public Offering (IPO) and the overall depth of its target market.