QuotaPath Raises $21.3M to Revolutionize Sales Commission Tracking
QuotaPath Secures $21.3 Million in Series A Funding
QuotaPath, a company specializing in commission-tracking software for sales and revenue-generating teams, has successfully completed a $21.3 million Series A funding round. The investment was spearheaded by Insight Partners.
Previous Funding and Growth
This latest financing round includes participation from existing investors such as ATX Ventures, Integr8d Capital, Stage 2 Capital, and HubSpot Ventures. To date, the startup has raised a total of $26.3 million since its establishment in 2018.
QuotaPath has experienced substantial growth, reporting a 600% increase in revenue since January 2021. Currently, the platform boasts over 5,000 users, with 40% utilizing the paid version.
Customer Base
The company’s client roster includes notable names like Guru, Contractbook, Mailgun, Cloud Academy, SaaSOptics, and OSG.
Addressing Commission Management Challenges
Founded by AJ Bruno, Cole Evetts, and Eric Heydenberk, QuotaPath was created to empower businesses in building and scaling effective, motivated growth teams.
The platform aims to simplify the commission process, eliminating issues related to inaccurate budgeting, incorrect payouts, and dissatisfaction among sales representatives stemming from inadequate sales commission planning, reporting, and administration.
CRM Integration and Visibility
Through real-time integrations with leading CRM systems – Salesforce, HubSpot, and Close.com – sales teams gain enhanced insight into their earnings and progress towards quota achievement.
The Genesis of QuotaPath
AJ Bruno, previously co-founder of PR analytics firm TrendKite (acquired by Cision in 2019 for $225 million), identified a critical need for a streamlined commission solution.
While leading sales and management teams at TrendKite, Bruno encountered difficulties with compensation and commission calculations. Resolving these issues proved time-consuming and complex.
Identifying a Market Opportunity
After an unsuccessful eight-month search for a suitable sales and commission tool, Bruno recognized a significant market opportunity. Sales representatives lacked real-time visibility into their compensation plans and earnings forecasts.
He, along with Evetts (formerly Director of Revenue and Sales Operations at TrendKite), embarked on developing a solution to address this problem. Heydenberk joined as the technical co-founder, and the company secured approximately $5 million in pre-seed and seed funding.
Focus on User Experience
The core principle guiding QuotaPath’s development was to ensure sales teams could easily understand their compensation plans. This necessitated a user interface that avoided the complexity of traditional spreadsheets, which many sales representatives find challenging.
The team dedicated a year to collaborating with end-users and sales representatives to build the platform’s infrastructure, enabling teams to effectively interpret the underlying mechanisms of their compensation.
Key Requirements
The platform was designed for rapid onboarding (under one week) and easy adjustability, allowing customers to make changes independently without relying on the company for assistance.
“QuotaPath empowers sales teams to forecast earnings more accurately and align goals with overall company performance,” Bruno stated.
Platform Launch and Market Scope
QuotaPath launched its paid platform in June 2020 and currently serves companies ranging from small teams of three representatives to larger organizations with several hundred. Its customer base spans various industries, including SaaS, commerce, and even non-technical businesses like wedding venues and funeral homes.
Bruno emphasized the substantial market size, noting that there are 10.5 million salespeople in the U.S. alone.
Competitive Landscape
The commission management space is attracting increasing attention from startups. CaptivateIQ, a competitor offering a no-code platform for designing customized sales commission plans, recently raised $46 million in a Series B round led by Accel.
Future Plans
QuotaPath currently employs 28 individuals and intends to utilize the new funding to double its workforce by the end of the year. The company also plans to expand its partnerships and broaden its product offerings to encompass finance and HR functions.
Insight Partners’ Involvement
Rachel Geller, Managing Director at Insight Partners, will join QuotaPath’s board of directors. Insight Onsite, the firm’s ScaleUp engine, prioritizes assisting portfolio companies in building high-performing sales and marketing teams.
Geller highlighted the importance of effective sales commission tracking and emphasized that QuotaPath provides a formula-free solution to the challenges posed by spreadsheets and legacy systems.
Ease of Use and Rapid Deployment
Insight Partners was particularly impressed by QuotaPath’s user-friendliness and swift implementation process. Customers can reportedly be fully operational with the platform within days.