Walnut Secures New Funding After Rapid 700% Growth

Walnut Secures $35 Million Series B Funding

Following a successful $15 million Series A round in August, Walnut, the innovator in sales and marketing demo experiences, has announced a new $35 million Series B financing.

No-Code Demo Platform Drives Growth

Walnut provides a no-code platform that empowers teams to rapidly create tailored product demonstrations. These demos can then be seamlessly integrated into existing sales and marketing workflows, with valuable insights generated from their usage.

Significant Revenue Increase and Expanding Customer Base

The company has experienced remarkable growth since its Series A funding. Co-founder and CEO Yoav Vilner reported a 700% increase in annual recurring revenue to TechCrunch. Currently, Walnut collaborates with approximately 100 SaaS clients, including prominent names like Adobe, Dell, Medallia, NetApp, Treasure Data, Funnel, People AI, and ContractBook.

Rapid Funding Round Driven by High Demand

Investor interest surged immediately after the Series A announcement, according to Vilner. While initially planning a later funding round, the company’s continued momentum prompted a quicker decision. He noted that the three-month interval between funding rounds is atypical, but justified by the company’s progress and readiness for further investment.

Felicis Ventures Leads the Round

This latest funding round, totaling $56 million in funding to date, is led by Felicis Ventures. Vilner explained that Felicis’ reputation and focus on SaaS and software made them an ideal partner for Walnut and co-founder Danni Friedland.

Strategic Investors Join the Round

In addition to Felicis, existing investors NFX, Eight Roads Ventures, and A Capital are participating. A group of strategic angel investors are also involved, including Salesforce president and CMO Sarah Franklin, Okta co-founder Frederic Kerrest, TripActions co-founder and CEO Ariel Cohen, and Papaya Global co-founder and CEO Eynat Guez.

Expansion Plans and Product Development

The new capital will facilitate Walnut’s team expansion from 55 to nearly 100 employees across the U.S., Europe, and Israel. Furthermore, the company will prioritize advancements in its technology and product offerings.

Revolutionizing the Sales Experience

Vilner stated that the funding will allow Walnut to address existing demand and broaden its platform to support various stages of the sales funnel. He envisions the company pioneering a new category, aiming to fundamentally transform the sales landscape.

Defining the "Sales Experience" Category

Felicis general partner Viviana Faga and vice president Jake Storm, the lead investors, are defining Walnut’s work as creating a “sales experience.” They believe the company is enhancing interactions between go-to-market teams and their customers.

Adapting to a Changing Sales Environment

Faga highlighted that the pandemic shifted customer preferences away from direct sales interactions, creating an opportune moment for tools like Walnut’s to facilitate more engaging demos. The platform’s adoption extended beyond sales teams to include marketing and customer success teams.

Riding Waves of Sales Enablement and Bottom-Up Growth

Storm observes that Walnut is benefiting from two key trends: a growing demand for efficient sales enablement solutions and a surge in bottom-up adoption of new technologies.

Investor Confidence in Walnut’s Vision

Faga concluded, “Upon meeting Yoav and Danni, we recognized their potential to build a substantial team. The extensive waitlist of users eager to utilize Walnut confirmed that it was a much-needed solution.”