product-led revenue startup correlated launches with $8.3m seed

Correlated Secures $8.3 Million in Seed Funding

Correlated, a company focused on product-led growth for sales teams, has announced the completion of an $8.3 million seed funding round. This investment will be used to further develop and launch their platform.

Investment Details

The funding round was co-led by NextView Ventures and Harrison Metal. Additional investors included Apollo Projects, Brian Long and Andrew Jones (co-founders of Attentive), Ben Darnell (co-founder of Cockroach Labs), and Pete Kazanjy of Atrium.

According to co-founder and CEO Tim Geisenheimer, the funding incorporates previous investments and recent follow-on funding from both NextView and Harrison.

Company Origins and Founding

Founded in 2020, Correlated was established by Tim Geisenheimer, Diana Hsieh, and John Pena. Geisenheimer and Hsieh previously worked together at TimescaleDB, while Geisenheimer met Pena at Facet.

Their collective experience highlighted a critical gap: the need for a seamless connection between product data and the tools utilized by sales teams.

Identifying the Problem

While at Timescale, Geisenheimer observed a large base of free users. He and Hsieh initially developed a rudimentary product-led growth platform internally.

However, they recognized the limitations of manually compiling data across various tools into spreadsheets. This process resulted in quickly outdated information.

The traditional sales process, where customer engagement followed product access, is evolving. Now, customers often begin using products independently, and sales teams lack immediate insight into their experiences.

Correlated’s Solution

“It’s essential for sales to understand how customers are utilizing the product and to identify the optimal moment for engagement, based on their level of experience,” Geisenheimer explained. “This ensures sales teams connect with the most receptive prospects and improve deal closure rates.”

Correlated’s platform integrates product usage data from various sources, including data warehouses and tools. It then connects this data to CRM systems like Salesforce or HubSpot.

This integration creates a comprehensive data graph, providing sales teams with a clear view of customer product usage. For instance, within a company of 200-500 employees, a salesperson can monitor login frequency and receive alerts indicating prime sales opportunities.

Current Traction and Future Plans

The company operates on a SaaS pricing model and currently serves mid-market clients such as Ally, Pulumi, ReadMe, and LaunchNotes.

The newly acquired funding will be allocated to expanding the team across engineering and go-to-market functions. Correlated currently employs 11 individuals.

Competitive Landscape

While other product-led growth platforms, like Endgame, have also received venture funding, Geisenheimer believes Correlated’s key differentiator lies in its ability to deliver rapid value to customers.

Many companies attempt to build similar systems in-house, but Correlated has already undertaken this complex task, offering a readily available solution.

Investor Perspective

David Beisel, co-founder and partner at NextView Ventures, emphasized his firm’s focus on investing in companies defining new categories.

Beisel has a long-standing relationship with Geisenheimer, dating back to NextView’s investment in TapCommerce, a previous venture led by Geisenheimer.

“Tim possesses a deep understanding of sales, and the company is offering a product with a strong alignment to the needs of its target market,” Beisel stated. “The industry is shifting towards a model where sustained end-user adoption is paramount. Correlated facilitates both initial sales and account expansion, positioning it for success in this evolving landscape.”