NewtonX Secures $32M Funding - Expert Insights for Business Decisions
NewtonX Secures $32 Million to Expand Access to Expert Insights
Many daily business choices depend on data, and frequently, the questions at hand have already been addressed by others. However, locating this accumulated knowledge can be challenging if you lack dedicated research resources or a panel of specialists. NewtonX is aiming to resolve this issue.
The B2B insights provider announced on Wednesday a $32 million Series B funding round. This investment will be used to further develop its platform, designed to broaden access to dependable, high-quality data and research findings.
Funding Details and Investors
Marbruck Ventures spearheaded the funding round, with participation from Level One Fund (backed by UBS O’Connor), Gaingels, and Heliad Partners. Existing investors, including Two Sigma, Third Prime, XFund, Story Ventures, and Switch, also contributed. This latest funding brings NewtonX’s total raised capital to $47 million.
We initially covered the company in 2019 following their $12 million Series A announcement. The core concept behind NewtonX is a search engine technology that connects inquiries with professionals possessing the relevant expertise, drawn from a network exceeding 1 billion individuals. A key feature is the verification process, ensuring the authenticity of each professional’s credentials.
Strategic Growth and Technological Advancement
Sascha Eder, co-founder and CEO of NewtonX, shared with TechCrunch that the company was nearing profitability. However, they opted to secure additional funding to prioritize accelerated growth. The Series A funds were invested in technology development, and now the focus is on enhancing that technology through automation and artificial intelligence.
This advancement will expedite the delivery of answers, enabling NewtonX to evolve into a scalable enterprise solution capable of supporting future expansion. The company also bolstered its marketing and sales teams earlier this year to increase brand recognition and forge strategic partnerships.
Expanding the Product Suite and Global Reach
A significant portion of the Series B funding will be allocated to expanding the product suite, necessitating further recruitment in marketing, sales, and engineering, according to Eder.
“For the first four years, we operated without a dedicated sales team, which is atypical for startups,” he explained. “However, we achieved product-market fit from the outset, providing effective solutions and experiencing substantial organic growth. Now is the opportune moment to elevate our efforts with a strategic approach to awareness and global expansion.”
Client Base and Growth Trajectory
NewtonX currently serves over 200 companies, including Pinterest and numerous Fortune 500 consulting firms, financial institutions, market research organizations, and mid-sized businesses. The company is experiencing 100% year-over-year growth.
Eder stated that they plan to increase their workforce from 80 employees presently to over 200 by the end of 2022, having grown from 45 employees around the same time last year.
Venture Capital Perspective
The need for accessible insights, even within the venture capital community, was a key factor in attracting investment, as noted by Kemper Shaw at Marbruck Ventures in a statement.
“In just five years, NewtonX has become a leader in B2B research, trusted by leading companies for critical data used in multi-million dollar decisions,” Shaw said. “Their knowledge graph and automated recruiting process connect business leaders with previously inaccessible or questionable data. NewtonX has solved this problem and will be vital for maintaining a competitive advantage.”
- Key takeaway: NewtonX is focused on making expert insights readily available.
- Future outlook: The company anticipates significant growth in both its team and client base.