Empowering physicians with AI to improve patient outcomes: Our investment in Aidoc

For investors deeply passionate about healthcare, there is no dearth of excitement and inspiration in contemporary times. Specifically, we are now seeing modern technology platforms being developed on the back of transformative progress in computer vision, computational technologies and methods, and the ability for systems to interconnect, in addition to sophisticated data modeling capabilities, among others. This innovation has served as the foundation for a new generation of healthcare software companies to take on massive industry challenges, including high-impact areas such as democratizing patient access, improving the quality of care, reducing drug discovery and development timelines, enabling frictionless payment and collections, and driving efficiencies in business processes and operational workflows. Aidoc is one such healthcare technology company with a vision to be the intelligence layer for medical imaging diagnostics and care coordination.  

Aidoc was founded in 2016 by CEO Elad Walach, CTO Michael Braginsky, VP of R&D Guy Reiner and CMO Gal Yaniv who met while serving in the Israeli Defense Force’s Talpiot program, an elite technology program focused on Artificial Intelligence (AI) and Machine Learning (ML) research. The company’s platform consists of 20 medical applications, including 15 FDA-cleared algorithms, designed to drive speed, efficiency, and accuracy of diagnosis in medical imaging and multidisciplinary coordination of care in the context of more complex episodes – stroke and pulmonary emboli, specifically. 

Medical imaging represents a massive component of overall healthcare spend – the U.S. spends approximately $118 billion on imaging services annually, and expenditures are projected to grow approximately 7% per year for the foreseeable future. For complex patient cases, clinical personnel across multiple medical specialties must be engaged in order to determine the appropriate treatment. Historically, this coordination of care across stakeholders has proven challenging, lacked systemization, and been performed largely via offline methods. As healthcare providers have introduced more multidisciplinary programs and increasingly look to standardize the provision of care across them, technologies that enable care coordination and provider collaboration across specialties have become increasingly important.

Aidoc’s mission is to leverage AI and workflow software to drive multidisciplinary care coordination and deliver the right diagnosis, at the right time, to the right physician. To that end, Aidoc has developed a technology platform that applies the company’s 15 FDA-cleared algorithms – with many more on the way – to a radiologist’s queue in order to prioritize and triage patient cases. Further, the company’s growing repository of millions of annotated medical images is used to continually improve its algorithms over time. Importantly, Aidoc’s AI is “always on,” and the platform applies the company’s algorithms to every case simultaneously, allowing cases in more urgent need of intervention to be elevated for review regardless of where they fall in the queue. Following triage and diagnosis, Aidoc’s software also enables clinical personnel to coordinate the downstream provision of care by facilitating information sharing and communication across multiple stakeholders. Finally, and perhaps most impressively, the company’s platform integrates seamlessly within the existing operational workflows and clinical protocols of its customers.

Aidoc’s customers include a number of large health systems in the U.S., including HCA, Northwell Health, The Mayo Clinic, and Cedars-Sinai. The company also has a meaningful presence internationally, with customers that include Antwerp University Hospital, Netherlands Cancer Institute, Sheba Medical Center, and Alfred Health, among others. Finally, Aidoc also has partner relationships with leading radiology service providers, including Radiology Partners and Everlight Radiology.

The company’s customers derive value from Aidoc’s platform in terms of: a) increased diagnostic efficiency, b) improved prioritization and triage of the most complex or urgent cases, c) higher-quality diagnoses and reduced diagnostic error-rates, and d) more systematized, streamlined coordination of patient care. The company’s compelling value proposition, coupled with its reputation for high-velocity, relentless innovation and above-and-beyond customer delivery and support, has engendered customer delight. As evidence, Aidoc boasts an average net promoter score of between 80 and 90. 

TCV’s healthcare team has spent the last several quarters prioritizing companies that provide AI technology across various applications for the healthcare industry. Most recently, this focus led to our investments in BenchSci, a provider of AI software for driving productivity in preclinical research for the life sciences industry, and Syllable, a provider of AI technology for provider business process automation (and soon payor and other healthcare sub-sectors). 

Our Series D investment in Aidoc, completed in partnership with our friends at Alpha Intelligence Capital, General Catalyst, Square Peg Capital, and Emerge Ventures, represents another illustration of our thesis, this time for diagnostic and care coordination use cases. The Series D funding is intended to help Aidoc expand the company’s AI and ML software platform into additional applications, rapidly scale headcount, and forward invest in future growth initiatives. We are particularly excited about Elad’s vision for both the business and future of patient care, in addition to the company’s recent momentum that has established Aidoc as an emerging leader in the category. Elad has also lined-up an impressive team of advisors and experts to advise the company, including TCV Venture Partner Anita Pramoda.

“Of the various AI and ML use cases in healthcare, Aidoc’s is the one that I’m particularly excited about – their technology immediately improves patient outcomes and drives efficiencies for clinical personnel,” says Anita Pramoda, TCV Venture Partner. “Exponential patient and provider value will continue to be realized as Elad and the team roll out new algorithms, software applications, and integrations. In the future, instant diagnosis of conditions will transform patient care as we know it, and most importantly, save lives.”

Value proposition and momentum notwithstanding, what also impressed us is the humble, high-learning, and customer-centric culture Elad and his team have developed that permeates throughout the organization. Starting with Elad, it was clear during our diligence that the Aidoc team is mission-driven and firmly committed to using their team members’ talents to develop technology that improves patient outcomes through AI-driven care coordination. The results speak for themselves – Aidoc is a top-ranked employer on Glassdoor.

“With healthcare institutions facing labor shortages and navigating difficult economic situations, the future is predicated on value-based care that is enabled by automation technologies like AI and ML,” says Aidoc CEO Elad Walach. “But AI and ML are not enough in singular use cases – they must be applied across the entirety of a healthcare enterprise in order to deliver value-based care to the extent that would make a deep impact – an intelligence layer covering the entire patient lifecycle. That’s where we believe our AI Care Platform will transform healthcare. Partnering with TCV – a team that truly understands the importance of value-based care – gives us the support we need to manifest our vision.”

We are off to the races in our partnership with Elad and the Aidoc team, and are incredibly excited to help build a category-defining, generational software company that helps improve patient outcomes through AI-driven care coordination.

***

The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/


TCV invests in Evisort to deliver scalable, AI-powered contract management

Contracts are at the heart of business, enshrining a company’s rights and obligations across areas ranging from sales transactions and supplier relationships to employment agreements and beyond. Resulting from this centrality, rising contract volumes and legal complexity have made contract management unmanageable without leveraging technology.

Evisort delivers end-to-end contract intelligence software that turns contracts into data. Customers use a simple, intuitive interface to extract critical context from contracts, integrate that data into other enterprise systems, and automate a wide range of legal and operational workflows – themselves codified in contract data. Evisort’s platform is powered by award-winning AI that is purpose-built for contracts and trained on over 10 million documents, thereby driving a differentiated customer experience and rapid, tangible ROI.

We are thrilled to announce TCV’s Series C investment in Evisort. We believe that contracts have been both an under-managed source of risk and under-explored source of value for companies, and that Evisort’s AI-powered Contract Intelligence Platform solves increasingly important pain points for businesses of all sizes, ranging from the Fortune 500 to mid-sized companies alike.

Evisort was founded in 2016 by lawyers and technologists who saw the need for automation in contract management.  The platform started as an intelligent analytics engine that extracts clauses and metadata to index contracts and their contents, making them easily searchable and manageable without manual data entry. Evisort’s AI further contextualizes the contract, indicating what type of contract it is, identifying counter-parties, flagging auto-renewal dates, and more.

More recently, Evisort has been adding workflow capabilities – relevant for coordinating contracting processes and operational workflows across the business. Evisort’s end-to-end approach ensures that all contract data is located in one repository, minimizing security risks, reducing the number of required integrations, and allowing the system to apply learnings from previous contracts to new ones.

More than any other contract management software business we’ve evaluated, Evisort’s AI platform supports a wider range of teams, industries, and use cases. Sales teams use Evisort to drive sales and renewals by reducing contracting friction and speeding time to agreement and revenue recognition. Legal departments use Evisort to drive compliance, quickly find and report on critical information, and act as a single source of truth. Procurement and sourcing organizations rely on Evisort to accelerate purchases, negotiate stronger agreements, and manage supplier risks more effectively. In all cases, Evisort drives efficiency by reducing reliance on manual legal review – a major bottleneck in many contracting processes.

Transforming the future of contract management

Evisort’s Contract Intelligence Platform has three main capabilities:

AI-Powered Contract Analytics and Insights: Evisort extracts data from contracts, produces critical insights, and reports on those insights in an easy-to-use dashboard, so that users can focus on higher value tasks. This contract intelligence is then used to generate workflows across the organization. Evisort is focused on delivering the intelligence layer between core operating systems such as customer relationship management and enterprise resource planning platforms.

Intelligent Contract Lifecycle Management: Evisort provides contract request intake, contract drafting, approvals, version control, and repository (storage, search, reporting) features. Evisort’s platform creates a source of truth so teams can centralize knowledge, collaborate easily, and simplify contract administration.

Central Contract Repository and Integrations: Evisort’s no-code platform lets legal, sales, and procurement teams self-serve, taking the burden off of IT teams and providing immediate configurability. Evisort easily integrates into existing systems to minimize the need for data migration and accelerates deployment because employees can work from the systems they already use.

Why now: A big market waiting for the right end-to-end product

At TCV, we have invested extensively behind the digitization of the legal industry – having backed innovative legal technology industry leaders such as Clio, LegalZoom, and Avvo. As part of our work in this space, we have been closely following the evolution of the CLM market for nearly a decade. In that time, customers consistently indicated a desire to manage both new and existing contracts in the same place – in other words, a true end-to-end platform. Over the last several years, our conversations in the space increasingly indicated that Evisort’s founders Jerry, Jake, and Amine had built exactly that and Evisort’s platform was seeing accelerating adoption in a largely greenfield market.

Evisort customers – which include our portfolio companies such as Netflix – typically start with analytics use cases to understand existing contracts, and then add pre-signature workflow to more efficiently generate new contracts. From there, thanks in part to Evisort’s ease of use, usage often quickly expands to additional teams and stakeholders within their organization. For customers, the results are industry-leading time-to-value, implementation speeds, self-service analytics, and flexibility to apply contract-based insights to a wide range of business functions. For Evisort, a cohesive and forward-thinking strategy appears to have translated into an innovative and fast growing company in an exciting market.

Looking Forward

As we look to the future, we are incredibly excited about the tailwinds strengthening Evisort’s value proposition for its customers. Businesses of all sizes have more contracts and a greater need to manage them than ever before. The compliance and regulatory environment also continues to evolve, requiring businesses to maintain constant visibility into their contract corpus. And companies are increasingly leveraging the data embedded in contracts to drive business processes across sales, procurement, operations, and finance.

Given that robust backdrop, we are incredibly excited to work with Jerry, Jake, Amine and the rest of the Evisort team to maximize the opportunity for AI applications in contract management.

 


Legit Security Launches Out of Stealth with Series A Investment to Secure Software Supply Chains

TEL AVIV, Israel, Feb. 10, 2022 (GLOBE NEWSWIRE) — Legit Security, a cyber security company with an enterprise SaaS solution to secure an organization’s software supply chain, today announced its launch out of stealth mode with a Series A $30 million funding announcement with leading venture capital firms Bessemer Venture Partners and TCV. Prior seed funding was provided by CyberStarts, the premier cybersecurity venture capital firm in Israel. Legit Security protects software supply chains from attack by automatically discovering and securing the pipelines, infrastructure, code and people so that businesses can stay safe while releasing software fast. The company will use the funds to expand its engineering team and continue building its go-to-market organization in the United States with offices in Austin and Palo Alto.

According to Gartner®, 45% of organizations worldwide will have experienced attacks on their software supply chains by 2025, a three-fold increase from 2021. Companies can no longer rely solely on traditional security tools and code scanners for protection as more organizations adopt modern applications, agile development, and DevOps. These complex software supply chains at the heart of digital business and critical infrastructure are now prime targets for cyber-attacks, and require new security solutions.

“Enterprises increasingly rely on software to do business, and they’re adopting cloud, DevOps, CI/CD and agile techniques to move fast,” said Roni Fuchs, CEO of Legit Security. “However, this has created a huge new, unprotected attack surface that cybercriminals have targeted, and their attacks are escalating. Right now, enterprises don’t need another code scanner. They need a holistic security solution for the broader software supply chain environment. That’s why we founded Legit Security and brought on world-class cybersecurity experts that share the same vision.”

“Legit provides a single pane of glass to mitigate software development risk,” said Bob Durfee, Head of DevSecOps at Takeda Pharmaceutical Company. “We’re now able to inventory all our SDLC systems and security tools, view developer activity, and detect and remediate vulnerabilities across them fast. Legit’s security scoring also allows me to measure the security posture of different teams and show progress improving it.”

Legit Security helps companies protect their end-to-end software supply chain environment and software releases through automated vulnerability discovery and analysis, security policy enforcement, and continuous assurance. The platform scans software development pipelines for gaps and leaks, development infrastructure and systems within those pipelines, and the people and their security hygiene as they operate within it. The solution doesn’t interfere with existing development tools and workflows, and includes continuous assurance and governance capabilities to monitor adherence to regulatory requirements and compliance frameworks in real-time.

“Legit helps us secure our CI/CD pipelines including tracking the security posture of our different teams and workspaces, addressing SDLC configuration drifts, and helping us apply security resources where it can help us most,” said Erik Bataller, VP of Security, ACV Auctions. “Legit’s platform enables our developers to maintain high velocity with minimal security friction and allows us to identify risk factors and adjust accordingly.”

“Legit is providing us with visibility across the entire supply chain, which helps us minimize risk and raise analyst productivity,” said James Robinson, Deputy Chief Information Security Officer at Netskope. “Legit’s platform nicely complements our existing investments in application security tools and allows us to make better decisions in allocating our security controls and resources.”

“Legit Security’s platform visualizes and analyzes our software pipelines quickly to help ensure security compliance with regulatory frameworks, as well as the unique compliance requirements of some of our large financial services partners,” said Or Cohen, Principal Engineer at Melio. “Legit’s solution saves us time and resources and allows us to manage risk better.”

“Software supply chain attacks will continue to grow until new solutions are available to close diverse security gaps across these environments,” said Amit Karp, Partner at Bessemer Venture Partners. “We love how Legit developed an enterprise solution that is easy to deploy and delivers value in a couple hours.”

Legit Security is led by CEO Roni Fuchs, CTO Liav Caspi, and VP of R&D Lior Barak and has assembled a team of security experts from the renowned Israeli Defense Force’s Unit 8200, Checkmarx, Ping Identity, Duo/Cisco, Microsoft and other leading cybersecurity firms in the U.S. and Israel. For more information, visit legitsecurity.com.

About Legit Security
Legit Security protects software supply chains from attack by automatically discovering and securing the pipelines, infrastructure, code and people so that businesses can stay safe while releasing software fast. Legit provides an easy to implement SaaS solution that supports both cloud and on-premises resources and combines automated discovery and analysis capabilities with hundreds of security policies developed by industry experts with real-world SDLC security experience. This integrated solution keeps your software factory secure and provides continuous assurance that your applications are released without vulnerabilities.

Media Contact
Tony Keller, Legit Security
tkeller@outvox.com

Katja Gagen, TCV
kgagen@tcv.com


Understanding the Future of High Tech

If the best way to create the future is to build it, then the best way to understand a possible future is to listen to those who invest in it. Gartner interviewed several leaders at TCV to better understand their views on the future of high technology and high-tech providers. The views expressed below represent TCV’s view on its operations and the future. These opinions are TCV’s own and independent of Gartner positions. Throughout the interviews, the following themes emerged regarding the forces and factors driving technology investments and future success:

  • Top-line revenue growth has replaced cost efficiency as the primary job for technology — it is now Job. 1.
  • Insight is the source of effective strategies for achieving growth through differentiation and specialization.
  • The pace of change is accelerating across the frontiers of technology, including how rapidly companies and consumers adopt it — and few competitive advantages are as decisive as speed.
  • Technology architectures are in the midst of a generational change that is driven by more than the cloud or Hyperscalers.

TCV has invested in these insights, focusing on companies with the technological potential to support rapid, substantial growth in large, untapped markets. Figure 1 shows the ideas and connections TCV leaders described as the future of high tech.

Figure 1. TCV’s Perspective on Technology-Accelerated Growth

Growth Is Job 1 for Technology

“When you cut through all of the jargon and acronyms, the biggest difference for software and tech over the past five years has been in supporting growth,” says McAdam, who contrasts the growth imperative with technology’s prior jobs of taking costs out or getting cheaper computing power. 

“Technology has created operating leverage via business process automation. Now technology’s value rests in driving top-line growth.” This changes the nature of technology, how it is valued, and what it does, according to McAdam.

“Growth is the uber premise when we think about disruptive technology solutions and the digitization of everything that drives our investment themes,” McAdam explains. “Consider CFOs. It used to be that an old-school CFO would be cost-oriented and say yes if the solution saved money and drove EPS. CFOs of today still care about this, but not as much as they care about taking market share from the competition. The clearest way a tech company can get a multibillion-dollar market cap — one that is 10, 20, 30 times revenue, is to provide a product that allows customers to transform their businesses and grow faster than the competition.”

Building for Scale and Speed

Applying technology in support of revenue growth requires TCV to work with companies on their go-to-market (GTM) strategy. TCV uses the ratio of revenue growth to sales and marketing expense (see Figure 2a) to identify points of friction and efficiency.

Figure 2. TCV’s Sales and Marketing Ratio

The calculation indicates how much new growth the company is achieving for every dollar spent on sales and marketing. If the ratio is 50 cents every $1 spent on sales and marketing generates 50 cents in new growth. The lower the ratio, the more opportunity there is to increase efficiency or effectiveness.

Figure 3 illustrates how the sales and marketing ratio can visually depict the performance of a company’s sales and marketing efforts. (Note these ranges are for illustration only; typical ratios vary by industry.)

Figure 3. Illustrations of Sales to Marketing Ratio

Source: TCV

TCV is using technology in a number of ways to move the needle:

  • Implementing analytics and diagnostics to identify growth obstacles, and documented strategies to better orchestrate key GTM practices across sales and marketing.
  • Facilitating forums and collaboration where leaders share ideas and best practices and road-test ideas with other executives.
  • Leveraging GTM practices that are based on best practices within the portfolio and providing other TCV companies with ready-to-programs to speed time to value.

TCV’s head of Marketing, Katja Gagen, added: “We see companies using technology to optimize their go-to-market capabilities. This can range from publishing thought leadership on growing sales pipeline or refining their messaging. The difference with technology is that companies can actively benchmark themselves against industry best practices.”

Blending Human Insight with Analytics to Identify Growth Potential

“We track nearly 10 million companies in our database,” notes Tim McAdam, a general partner at TCV. “We then do a deeper analysis of 2,000 to 3,000 candidates per year in order to select 12 to 15 companies in which to invest.” This puts our information on prospective companies into an analytic engine running proprietary algorithms created from the firm’s domain knowledge, sector expertise and 26 years of investment insights.

The result for each candidate is much like a credit score — a snapshot of investment worthiness that guides subsequent analysis and decision making. As McAdam explains, “Any given result is statistically valid because of the high number of other companies we have ranked against the same set of metrics. It’s an empirically driven assessment of the company’s areas of strength and needs for improvement.”

TCV uses this information to differentiate each of its portfolio company’s situation and connect it with experienced people and resources in support of the company’s success. McAdam compares TCV’s role to that of a coach, “we recognize that the founders of our portfolio companies are deeply invested in their firms. We seek to provide advice for them with humility, intellectual honesty and insight, with an eye toward finding solutions that move them forward.”

Growth requires a different Technology Architecture and Infrastructure

Matt Robinson, a TCV principal, explains that “high-tech architectures shift about every decade. Today, the increasing importance of speed, extensible solutions and consumption-based business models is the driver of evolution in architectures and infrastructure. If my technology is designed to drive your top-line growth, then your growth becomes my growth,” Robinson explains. “Our architectures and infrastructures need to be seamlessly integrated together.” Thus, the business case for architecture evolution is at least as important as the technical innovation from cloud and Hyperscalers.

The Future of High Tech — High Growth Potential

TCV does not see the future as one of consolidation around a few large well-capitalized companies — either Hyperscalers or so-called digital giants. “It is an old argument to think that everything will consolidate,” McAdam notes. “That view makes sense only if companies stop finding new ways to grow.” While he believes that Hyperscalers are important, he sees their role as “more of a channel to a stream of future technology-intensive growth and innovation rather than a competitor in the application/solution space.”

Gartner subscribers can see the full published case study at: Case Study: The Future of High Tech and Generative Providers (TCV).


At Growth Enablement, Modernizing Sales Enablement Means Throwing Out the Old Playbook

In an increasingly competitive sales landscape, throwing out the playbook may seem like a bold strategy. But that’s exactly what Scott Santucci, president of the sales enablement consulting firm Growth Enablement, has been advising his clients to do. Commercial systems designed even as late as 2019 are likely full of complex trainings, outdated information, and other sorts of friction that can slow down the actual sales process. Instead, businesses should focus on systematically reducing the obstacles that stand in the way of sales progress to accelerate enablement.

In today’s episode of Growth Hacks, Katja and Kunal speak with Scott about how he’s viewing the evolution and current state of enablement, and how he’s adapting the traditional customer-centric approach to unlock value at a faster pace for both businesses and their customers. In addition to actionable tips on accelerating the sales enablement process, Scott walks us through combining perspectives from sales, marketing, and product to create a route to value. He also shares his strategies for simplifying metrics to measure commercial health. Lastly, he breaks down the importance of including diverse stakeholders from across the organization in the process of creating a new sales enablement playbook, and his top tips for salespeople just starting out.

Here’s what you’ll learn:

  • How to use the sales and marketing efficiency ratio to improve commercial health across an entire organization
  • The importance of having multiple perspectives in the room to improve sales enablement
  • Ways to identify the right route to value to clarify sales messaging and training
  • Tips for aligning organizational economic value with the needs of your customer base
  • Actionable strategies to eliminate friction in the sales process

To hear more on this, settle in and press play. 

Please find the transcript below, which has been edited for brevity and clarity.

Kunal Mehta: It’s my pleasure to introduce Scott Santucci to Growth Hacks. Scott is going to be presenting a bunch of Growth Hacks today. I met Scott when he was a research director at Forrester, where he founded the enablement practice, led research around executive buying, and built frameworks to give people a common language to talk about sales enablement, and sales productivity. After Forrester, he moved into more commercial roles, helping companies transform not only their sales process, but simplify their go-to-market. How awesome it is to have Scott Santucci in our metaverse. Welcome to Growth Hacks.

Scott Santucci: Thank you so much for having me, Kunal, and I just want to plug Growth Hacks. Having been in the research business for so long, the way that you are tackling these issues and being reflective and asking questions about what’s really happening, not what should be happening, it’s just really fantastic. Thank you for having me as a participant on your show, and I’m definitely a listener.

Katja Gagen: That’s awesome. Glad to hear that. Where does this podcast find you today, Scott?

Scott Santucci: I’m in Leesburg, Virginia, suburb of Washington, DC.

Katja Gagen: Scott, you’ve done a lot of research around sales enablement, and our listeners are excited to hear about this. Tell us in a few words, what is sales enablement, how has it evolved and why does it still pique your interest today?

Scott Santucci: To be simple about it, Katja, what is sales enablement? If you ask 10 people, you’ll get 15 different answers. So let me give you sort of two schools of thought. One would be sales enablement is about doing something for salespeople to help drive more revenue or more sales. That could be in the form of training. It could be in the form of leads. It could be a form of content, those kinds of activities.

Another school of thought is that sales enablement is about creating the overall system, including customers. Figuring out sales and marketing and product and making sure that environment is thriving better.

The reason I’m so interested in that bucket, and what makes me so compelled is that the world that we live in today is so interconnected that we have to have different strategies on how we optimize sales and marketing. To me, they’re directly related of looking at the ecosystem or the buying networks that we’re connected with our customers with.

Those are the things that I concentrate on and that’s where my research has always been. It’s that sales and marketing exist in order to drive growth, and we drive growth by making sure we’re always understanding what our customers are looking for, what kinds of problems they have, and also what stands in the way from them getting the value from our products and services.

Kunal Mehta: Scott, you have been an analyst, a practitioner, a consultant. You have talked to thousands of people. You are at the center of enablement. I’d really love to get your meta view on the state of enablement today.

Scott Santucci: I think the state of enablement today is the state of a lot of businesses. This is a adopt or die kind of situation. And I hate to be so bold but let me give you a headline of what I mean by that.

If you are following the practices of before either 2008 or before 2019, you are probably arming or gumming up your commercial system. You are probably producing lots of activities that are overly complex, like a training class or a marketing piece, rather than recognizing how much information salespeople have to synthesize and make it digestible for lots of people inside their customer network.

If you have always been a person who believes you work backwards from customers first, that’s never going to change. What’s different is how interconnected selling activities are today. How fast things move, how many people are involved and how those situations make the old strategies not suitable for 2021 and beyond.

Katja Gagen: That’s interesting Scott. Since you’ve been in the enablement business for some time, what’s an example of things working and where can companies miss the mark?

Scott Santucci: What works is creating things that actually take stuff away. Here’s a perfect example of a really great enablement program. Going in and identifying all of the obstacles that stand in the way, say, to produce a price quote and just systematically eliminating them and replacing it with something simpler. You would think that doing something like that is no big deal, but taking stuff away is not in most people’s muscle memory, so to systematically reduce things that stand in the way of making progress is great success.

Another example of something that’s great success is getting people in the room that have different backgrounds, to collaborate on a shared vision. It might be a picture, a map, a diagram of what the future could look like for customers. Having multiple perspectives involved and the discipline to get it on one sheet of paper means that picture is going to probably be more accessible to more people in those customers.

Those are two examples of things that work. I put them in the bucket of synthesis. Things that don’t work are more detailed training, plotting the Salesforce out, doing another heavy training activity to teach them more and more sales technique.

Kunal Mehta: Got it. Scott, I want to start with something we are both really passionate about, which is the sales and marketing efficiency ratio, or something you refer to as the commercial ratio and how you are using it to measure the health of sales and marketing. Scott, maybe before we get rolling into it, you could just explain what it is.

Scott Santucci: The commercial ratio is a measure of the overall health of a commercial system. That includes the revenue coming from customers, includes the spending that’s done for sales, and the spending that’s done for marketing.

The calculation is pretty straight forward; we got that from you guys. It’s the revenue growth divided by total sales and marketing spend. That gives you a ratio. Which gives you a relative health of how efficient the sales and marketing investments are.

Now that’s the calculation. What is it measuring? It assumes that the money spent for sales and marketing, its purpose is to drive revenue growth. There are situations where you would spend sales and marketing money to retain customers, but that’s what its focal point is.

Kunal Mehta: What was your aha moment when you first learned about it?

Scott Santucci: Having been a consultant for so long, one of the things that has always been challenging is how much data companies track about sales and marketing. One large client, they track over 5,000 different metrics for their sales organization. If you are tracking that amount of data, you are tracking nothing. What I’m a big believer in is, what’s the one metric that we can work backwards from that we want to move the needle from?

When we arrived at that commercial ratio from talking to other people inside your company, to have that one metric. The metric says to me, how do we, as a company work better together? How do we team up and be on the same page to go find more efficient ways to attract customers?

Where it became an aha moment to me is how do we stop the internal bickering to circle the wagons, go outside, and compete in the market and not compete inside our company.

Katja Gagen: That’s really interesting Scott. How do you use that ratio to bring people together or align them around a common goal?

Scott Santucci: That has been interesting. I think step number one is, let’s help everybody get on the same page behind it. Some people will reject it because it is not a ratio that they are familiar with, or it sounds like something that’s coming from finance.

I think step number one is let’s understand what the meaning of it is and step number two is to recognize that there is a sequence of events to get there and that we can get there together. By having a plan of stopping to do things that don’t work and finding ways to invest in things that do work. Having that narrative helps a lot.

I think what’s important though, is making sure you meet all of the different folks that would be involved in teaming together. You’ve got to meet them where they are first and then help them connect the dots, second.

Kunal Mehta: Scott, maybe you could just give us a practical example of how you’ve rolled this out at one of your customers now.

Scott Santucci: Let’s take a business with about $500 million in revenue in the security space, a SaaS company in the security space. Using the commercial ratio, as a way to say, if we want to improve the overall health of sales or profitability, let’s look at how we’re doing today. And using that ratio to say, what would it be if we went from .55 to .60, to .75 to 1.0, and why don’t we ask those questions of what would it look like?

Let’s simulate what that would look like in terms of our financial performance, what it would look like in terms of our organizations and help people envision what that would look like. In doing that process, what’s interesting is people move off the thing that they have to do right now in that moment, and they can start envisioning making incremental change.

Then from there could be doing things differently, and where should we start? Let’s look at your business like a portfolio of different revenue streams, and let’s segment it out differently and look at these different buckets in their own isolation.

What we’re looking to do is optimize or create the most value out of each of these revenue streams, and we want to take out as much friction as possible so that we make it much easier to do work and make sure that people agree with that. Then the next part is, let’s pick one of those things and work on something to tackle.

Katja Gagen: Right. And in the end, it’s all about value creation, right?

Scott Santucci: That’s right. Yes, exactly.

Katja Gagen: In that vein, you talk about the route to value, and how you combine what sales and marketing do to deliver that value. Give me an example.

Scott Santucci: That’s a great question. Let’s pick that same example that we were working backwards from, one of the things that we highlighted. So now that we have these different portfolios of revenue streams, and we have a good understanding about where their friction is. The idea of a route to value is a different way to think about a sales messaging and sales training.

A basic metaphor is to say, let’s recognize that we’re in the value creation business, to your point. What we want to do is help our clients along a journey from where they are today, the bad state, to where they want to get to, an envisioned future state that our company can take them.

We need to figure out what that journey looks like. We call that a value map, that’s where they want to get to. Now what the route to value is, is to say, let’s figure out what the change agent and the executive sponsor need to do to buy into that picture, and then help guide them through the decisions, the predictable decisions that they’re going to need to make through that journey.

It’s like plotting out a movie, in that there are predictable scenes that you can work backwards from. Then once you have that, you can determine, do we want our salespeople to be security subject matter experts? Or do we want them to be decision-making brokers, decision-making champions?

If you make them decision-making champions, things become a lot easier. You give them less materials; you can define very specific scenes. For marketing it’s capturing stories that match to each one of those scenes that you already have and organize that information to help salespeople.

A route to value is writing a future movie of where you want to take your customers. You are casting your clients as the heroes. Therefore, you are also casting your salespeople as the guides and then marketing is there to equip the salespeople with the tools that they need to help the clients, to navigate all of those different variables that they’re going to run into inside their organizations.

Katja Gagen: I like that. Scott, I’m getting my popcorn ready here for the movie roll out. After you’ve brought everyone in the company into this value creation, how do you make sure the economic value is aligned with what the customer wants?

Scott Santucci: The process of building a value map is very challenging. There’s a technique that we like to call model map match. The model part is, let’s model our customer’s world, what we’re looking at, isn’t interviewing customers about what products they want. That’s way too late in the game.

What we want to do is figure out what challenges do individual companies have that meet certain patterns. Let’s find out what’s the profile of the human that’s most likely to drive that forward. We call that person a change agent.

What do they look like? What’s their profile? You know that that person isn’t going to be successful unless they have an executive sponsor. If we understand what problems exist and we understand who these types of people are then the next thing that we can figure out is how do we build the information that they need to figure out why they need to change in the first place? And why now?

If you don’t have those things figured out, we put the burden on salespeople to figure it out and that’s really hard to do. When you have that information then Katja, it becomes pretty simple to figure out whether your value proposition matches those predictable conditions.

And then you have a scorecard and then you keep the validation from it by how well it’s testing in the field and how well it’s resonating. But you can always tweak it by bringing customers in to talk and react to it so there’s always ways to keep it fresh.

I think the challenge is just having the discipline to build it outside-in from the get-go.

Katja Gagen: I love that, Scott. Thank you. As always, we will finish our podcast with some rapid-fire questions. First one, what’s your go-to book?

Scott Santucci: I wish I had one go-to book. There are three books that I’ve read, and I keep reading over and over and over again. One is The Chaos Imperative, which is about embracing disruption and turning it into innovation. Another one is Antifragile, which is about turning disorder into a strategy. The third one is Switch, which is about how change actually happens and how you have to plot it out. You know how you can manufacture it and create an environment for change, rather than putting on the backs of individual people.

Kunal Mehta: Hey, Scott, what’s your biggest pet peeve?

Scott Santucci: My biggest pet peeve is for people who say salespeople should do X, Y, and Z, and they haven’t done it themselves.

Katja Gagen: What’s one piece of advice you would give someone starting out in sales.

Scott Santucci: Be curious. It’s not about you. It’s about the customer. Find out everything there is to know. What they think, find ways to be relatable with them. That’s the easiest path to being successful.

Katja Gagen: What was one thing you learned about yourself during the pandemic?

Scott Santucci: What I learned about myself during the pandemic is that going back to your roots of what you know and finding ways to challenge certain questions. So, doubling down on being more curious, what I did is kind of threw out my old playbook, I just threw it out and I decided I need to build one from scratch. I’m so grateful I did because a lot of the things in my old playbook just won’t work today, and I don’t think it’s coming back to where it was before.

Katja Gagen: Well, thanks for being with us today, Scott.

Scott Santucci: Thank you.

Katja Gagen: Thanks for listening to Growth Hacks. You can follow us on Spotify, Apple Podcasts, or wherever you listen. To learn more about us and TCV’s CEO and founder podcast, go to TCV.com or email us at growthhacks@tcv.com.

***

The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview and blog post are not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Product-Focused Storytelling: How Redis Rebranded and Refined its Marketing to Connect Deeply with the Developer Community

Growth Hacks – Moving the Metric

When open-source database company, Redis decided to undergo a rebrand, their first order of business was to identify what the rebrand was solving for. In Redis’ case, they wanted to connect even deeper with the developer community and unify the entire Redis community towards a single vision. To harness the power of the developer community, Redis adopted product-focused storytelling and prioritized building a growth funnel to fuel bottoms up adoption. By building that bridge between the Redis product and its key audiences, the company now has a pipeline to a community that not only knows about early life-cycle Redis products, but whose usage can better inform Redis’ demand funnel as well.

In the latest episode of Growth Hacks, Katja and Kunal speak with Mike Anand, CMO of TCV portfolio company, Redis. Mike explains how Redis derived its product-focused marketing strategy as part of its larger rebrand, and how that strategy has helped Redis build a vocal community of developers. He also talks through his top priorities as he makes Redis’ marketing operations more agile and data-driven, and how Redis has taken a use case first approach with analysts to build stronger relationships and garner better coverage.

Here’s what you’ll learn:

  • How to run an effective rebrand that resonates with your primary audience
  • Using outside-in messaging to become a product-focused storyteller
  • Unlocking the benefits of building growth and demand funnels in tandem
  • Leveraging use cases to build strong relationships with analysts
  • Why making marketing at Redis more agile and data-driven is a “number one priority”
  • The importance of mission and social responsibility in modern recruitment

To hear more on this, settle in and press play.

Please find the transcript below, which has been edited for brevity and clarity.

Kunal Mehta: Well, today we have the privilege of being joined by one of the coolest marketers in the portfolio and a veteran in the software industry. It’s my pleasure to introduce you to Mike Anand, the CMO of Redis. Mike also held roles in large companies like Amazon and emerging companies like AppD.

He’s going to be sharing his experience in leading the transformation of the Redis brand. Mike, welcome to Growth Hacks.

Mike Anand: It’s a pleasure to be here today on the best podcast in the universe.

Katja Gagen: Awesome and we love to have you. I know we’ve been attached since we had made the first investment in Redis, but for our listeners, tell us one fact that nobody knows about you.

Mike Anand: One is that I have a twin brother and I’m five minutes older than him. I met my wife while she was looking for volunteers for Earth Day.

I’m blessed with two kids, a son, and a daughter. I have the best of both worlds.

Kunal Mehta: Fantastic. I’m sure you let your brother know you’re older than him. For our listeners that don’t know what Redis does, maybe you can give us a quick elevator pitch.

Mike Anand: Before the elevator pitch, I’ll just give you the framing from the outside-in. If I take that outside-in view, we’re at the intersection of two developer-driven trends. Mass rapid adoption of open-source software and the cloud itself. And that is fueling tremendous innovation in the database market.

I mean, look at all the database companies that have emerged in the last 10 years that are attracting a huge amount of investments. So Redis’ unique differentiator is really about simplicity for developers, to help them build real time applications for the real time world.

As enterprises see disruptors from digital native companies, a whole new adoption of technologies and tools like Redis allow them to move faster, innovate faster, and create differentiated experiences for their customers.

Katja Gagen: That’s great, Mike. And across industries, organizations are accelerating the digital or cloud transformation for long-term growth and profitability. But we also know that organizations remain untested in the face of digital challenges. And their digital readiness is a bit uncertain.

What’s your take on that? And who do you believe will be the biggest winner in this trend?

Mike Anand: Yeah, Katja. Look, I think change is hard, right? If you want massive change in an organization, I believe you have to make it personal and you have to make it about people. There isn’t a technology that offers a silver bullet. You’re asking people to change the processes that they have relied on successfully for years.

I believe the heart of a successful transformation is really lining up your business objectives to your DNA and really understand how it ties to your team. And paramount to all of this is making sure that you have an executive sponsorship. And I believe the big winners are those who set goals and objectives and then gain alignment. But actually, start small and then gradually add more complexity and scope, based on what they have learned.

Kunal Mehta: What are the major trends in digital transformation that companies should be paying close attention to, and who do you believe has advanced in these key areas?

Mike Anand: You know, I think innovation and transformation is all around us. If you look at the FinServ industries, they’ve always been leaders in everything from customer experiences to new products. I mean, how people bank, how we invest today, how we trade stocks. All of it is upside down from when I grew up. Retail and that whole sector has been forced to adapt by Amazon and even more so accelerated under COVID. Healthcare is seeing early innovation and transformation across patient communications to prescription delivery, really exciting stuff happening around drug discoveries.

I think the biggest example is entertainment. Gaming is now the world’s biggest form of entertainment with 2.7 billion players and getting bigger every day. Gaming is now bigger than the movie industry and sports industry combined.

Kunal Mehta: Wow, that’s an incredible stat. I’d love to hear a story about how Redis is equipping some of these companies to grow so quickly.

Mike Anand: I think if you look at all these industries, what do they have in common? They have to differentiate themselves from digital native companies. They have to provide experiences for consumers, like never before.

If you think about the world’s largest taxi company, owns no taxis. The largest content creator doesn’t have a writing staff. But one thing that is common is that it’s about age of real time. And Redis is the fastest database out there helping all these companies across all these industries, where they need to make sure that their applications can leverage the real time data to drive business intelligence and insights.

Kunal Mehta: Outstanding. And I think that foundational firepower is critical to all of those transformations that people are talking about.

Katja Gagen: I know Mike, you just did a rebrand at Redis. How did you go about this? How did you lay the foundation and how did you build on it?

Mike Anand: I think it’s really important when you start a rebranding exercise, to keep it simple, keep your messaging simple. You need to build a pool of people that you can use as your listening post, as also the people that you can understand and dive deeper with. And I think also the second-most important thing that you have to think about is, why are you actually doing the rebrand? In our case, a rebranding exercise was all about breaking the silos between our open-source project and the company, which was perceived as only focused on commercial business.

You have to really understand why are you rebranding? And then when you think about creating the buzz and excitement it’s very, very tempting to out-think yourself. But as you build that process, as you build that engine to create noise and buzz, you really have to think about, how can you tie this launch to the stakeholders, right? And who are the key stakeholders that you want to make an impact with?

This is where your tone matters. This is where leveraging your simplicity of your message matters. I would try to bucketize the activities in those larger categories.

Kunal Mehta: You know, my follow up Mike is when I look at your work specifically with the analyst community, it went from largely on the fringe to big mindshare with key analysts. Maybe you can just give us the three things you did to grow your mindshare with companies like Gartner.

Mike Anand: When think about analysts and then community, I really think about building a relationship. Look, analyst community has a tremendous power and knowledge of what is painful for your customers. The first part of connecting and building that journey with that analyst community is to not only just make a hard pitch and sell them what your products can do, but it’s actually help you understand from them better, what do your customers need? It is no longer about companies; it’s about use cases. When you reach out to analysts, I highly recommend you, you step away from, ‘Hey, how many inquiries are you getting about X technology or Y?’ Really focus on use cases.

That was the angle that we took at Redis to help us understand the use cases that matters to the customers, tie our story to those use cases, and then build and foster a relationship from that point on. That way both of us get mutual benefit out of the conversations.

Kunal Mehta: I think we have kismet on this. The use cases are worth so much with the analysts and then even introducing them to some of the companies that are driving this innovation – just a well done move there.

Katja Gagen: I agree. And I think what’s also true is we’ve seen things are evolving right? In the technology business, but also when it comes to the role of the CMO. Mike, how have you adapted over the years and how have you seen the role of marketing change? Tell us a little bit more about field marketing and account-based marketing, that are some of your sweet spots.

Mike Anand: It’s a very exciting time to be in marketing. Marketing is going through tremendous evolution. The enterprise buying journey has completely changed. Developers hold a special power and the new ITDMs, right? And if you think about it, buyers are anonymous and distributed, sales is getting involved later and later in the cycle.

I truly believe that modern CMOs have to think about and take the role differently. And they have to become a bigger partner to the CEOs, and the role is bigger than just creating demand and building brand. Modern CMOs, I think, really have to be technology forward leaders. They have to be agile, and data driven. And they have to find a way to inject technology in a sensible way that allows them to get both the leading and lagging insights about the business itself.

Second, I really think that CMOs have to think about not just being storytellers, but product focused storytellers. They have to build the bridge between what’s being built and sold, but they also have to be the community builders out there. Get the community to participate in promoting your story and your technology.

Lastly, about ABM, it’s very exciting, it’s all the rage. But the way I encourage people to think about it is actually think about account-based revenue. Because that’s when you can tie both sales and marketing to joint MBOs.

Kunal Mehta: Well in this shift that you’re talking about, how are you creating top-of-the-funnel motions?

Mike Anand: Yeah, Kunal, it’s a perfect segue, right? I really think that there are two funnels. There are growth funnel and demand funnel. Early on in the company life cycle, a lot of people are focused on growth funnel, but for a company like Redis and where we are at the stage of ARR and the growth that we are, I’m really building two funnels in parallel.

Product led growth funnel, is all about creating the groundswell among developers and creating those little fires everywhere. And it doesn’t matter if some of these sign ups don’t convert into enterprise business, it’s okay. We just have to let people get their hands on the product and experience for themselves the benefits that Redis provides to give them real time data, to build their applications.

For the demand funnel, it’s about taking those product qualified leads, and understanding, out of those, what are the population? What are the accounts? What are the segments that you really need to engage, that you really need to go after?

How can you leverage the product usage data to actually drive insights for your demand funnel? And then if you can marry those two together, then I think you can build a very healthy top of the funnel business.

Kunal Mehta: Outstanding. Mike, as a marketing organization, what are the biggest challenges you are facing right now?

Mike Anand: One of the biggest things for us, that I’m focused on marketing, is how to make marketing in general, more agile. Traditionally, marketers have relied on a certain set of metrics and a longer bake-off, to be able to make the impact. And for the world that we really live in, my number one priority and the goal for marketing organization to become more agile and data driven. And it’s identifying those leading indicators that gives me an idea of how each of our campaigns are doing, and when and how we need to course correct.

The second big challenge is we have some really exciting products out there that are early in their product life cycle. So, it’s about creating that awareness of those products in the mindsets of Redis developers, and customers and partners. This is where I alluded to the comments about, you have to really make the messaging all about product and product focus with an outside-in driving messaging.

I think the third one is, we are today sitting in the age of a great resignation. I think, as a marketing leader, you have to really think about your team and who’s on the bus. What sort of people do you want on the team? But how can you connect what these people want, to a bigger, broader mission than the job itself. What role does the marketing organization play in taking social responsibility? And that mission is bigger than just the job and the company itself.

Katja Gagen: Awesome. Thanks so much, Mike, we’re going to shift now to a rapid-fire format and ask you a couple of quick questions. I’ll let Kunal start.

Kunal Mehta: As you walk into your office in the morning, what’s your favorite metric to look at, where you know things are going well?

Mike Anand: One of my favorite metrics is sales velocity and knowing how quickly we can convert those leads into a closed one. That’s got to be my favorite.

Kunal Mehta: Maybe you can talk about the company you admire the most today and why.

Mike Anand: Yeah, I’ve had three related careers, Kunal. As a product manager, I really loved the working backwards approach from the customer for Intuit. They make such a complex products like taxes and accounting, and they make it so simple. As a storyteller, really enjoyed Stripe’s journey of how they tied the story into their products and the evolution of that.

As a full stack marketer, I really get excited about looking at some of the consumer companies who inject fun and personalization into the brands and how B2B companies learn from it. A few examples of that are Pinterest and NextDoor that are building communities, it’s super relevant to us. Target is another one that makes shopping fun and how they take on Amazon. A small brand like Tieks, who sell only one product out there, but they make it personal, they make it simple, and they give you that experience every time you get that box that is so unique. And I think there’s a lot that B2B companies can learn from some of those brands in the consumer world.

Katja Gagen: Thanks Mike. If you were to mentor someone who wanted to get their feet wet in the marketing pool, what’s your advice for getting started? How do you build your career?

Mike Anand: I think you have to really find a way, Katja, and try a few different things. You’re going to get a lot of advice. You’re going to get a lot of coaching. But you have to really take your journey and really think about what’s important to you.

Early in your life, I would really ask you to expose yourself to a few different roles, a few different types of companies. Go work for a big company and understand how things work, but then also go work for a startup, where there are no swim lanes, there are no processes, and you have to disrupt yourself almost every single day. Think about it from that perspective and stay hungry.

Kunal Mehta: Mike, if I was working for you, what would be your biggest pet peeve?

Mike Anand: I’d be blessed if you were on the team, but at the same time, look, kindness is not an optional, I’m an empathy driven leader. It’s a mandatory requirement.

Second is preparation. Meetings in the zoom world are happening all the time. Every five-minute conversation is now a meeting. One of my biggest pet peeves is showing up to the meetings unprepared. I really want people to do the due diligence of putting together, hey, what is the outcome you want to drive from the meeting? Why are you coming to the meeting? What are people going to get? And do the prep work before you show up to the meeting so you can drive a better outcome out of it.

Katja Gagen: Thanks so much, Mike, for sharing all these nuggets of gold with us. I really like how you emphasize that brands start with empathy and listening. And you talked us through the process of how you can build a brand that galvanizes both your developer community, but also internal stakeholders.

The other takeaway I really liked is to keep the message simple. It’s easier said than done, but it’s something that is so important. And lastly, how the role of the CMO has changed and what it takes today, and in the future, to be successful.

Katja Gagen: Thanks for being on the podcast, Mike.

Mike Anand: Thank you for having me. It was a pleasure.

***

The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview and blog post are not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Commerce Technology Provider Spryker Announces $130 Million Financing Round Led by TCV to Accelerate U.S. Centric Global Expansion to Enable Transactional Business Models

NEW YORK AND BERLIN (PRWEB) DECEMBER 17, 2020

Spryker, a fast-growing commerce technology for global enterprises, today announced that it has raised over $130 million in a Series C financing round, led by Silicon Valley-based TCV. Existing investors One Peak from London and Project A Ventures from Berlin also participated in the round.

The funding will be used to expand Spryker’s proven B2B and Enterprise Marketplace products and create a compelling 3rd party technology AppStore. Spryker also intends to grow its international footprint with a focus on the U.S., which already accounts for 10% of its annual software revenue. With $7 billion in annual spend, the potential in digital commerce software is massive — and Spryker is rapidly increasing its market share. Spryker also intends to grow its global talent to maintain its innovative edge and continue to build new products for future use cases and touch points, including IoT commerce, subscription, and click & collect.

Used by over 150 global customers, Spryker accelerates the deployment, time-to-value, and transformation towards transactional business models beyond e-Commerce, retail, and desktop. These benefits stem from Spryker’s innovative headless and API-based architecture, combined with a modular packaged business capabilities (PBC) design. The cloud native PaaS (Platform as a Service) delivery model empowers sophisticated businesses that have outgrown SaaS (Software as a Service) and on-premise single tenant models. As more companies shift to become “composable enterprises“ led by multidisciplinary “fusion teams”, Spryker is at the forefront of this movement having pioneered and predicted these approaches.

Founded in 2014, Spryker has been growing its recurring revenue more than 100% annually. The global team counts more than 250 employees with over 35 nationalities, working out of offices in Germany, USA, U.K., Netherlands, and Ukraine. Spryker recently pioneered a “New Work” model, offering remote first options for talent worldwide. Spryker is expanding operations in the U.S. in early 2021 to continue its rapid growth and support global customers, such as Ricoh, Siemens, and Toyota.

Spryker was named the most innovative and visionary of all new vendors in the Gartner Magic Quadrant for Digital Commerce, recognized as a major player in B2B e-Commerce by IDC, and has partnered with leading global software integrators.

Boris Lokschin, Co-Founder & CEO at Spryker Systems said:

“With more industries beyond traditional retail building transactional business models we enable our global enterprise customers at any touchpoint. Verticals like Food & Beverages, Manufacturing, Services or FMCG transform to become composable enterprises and demand for cloud native, modular commerce technologies to power their sophisticated B2B, Enterprise Marketplace, or Unified Commerce initiatives. They want the platform to respond to digital best practices and enable shorter time-to-value, better TCO, and faster innovation which always was Spyker’s DNA. With TCV we are happy to have one of the most reputable global growth funds joining us to support our global, U.S.-centric expansion as well as groundbreaking product roadmap.”

Gopi Vaddi, General Partner at TCV who will be joining Spryker’s board of directors, said:

“We at TCV are pleased to partner with Boris, Alex, and the team at Spryker in their effort to provide a modern commerce platform that revolutionizes the deployment model with packaged business capabilities. With the acceleration of the digital adoption curve in the global pandemic, there has never been a better time for customers to rethink their digital commerce strategy.”

Bob Burke, Venture Partner at TCV, said:

“Digital commerce is a strategic priority for enterprises operating across consumer (B2C), business (B2B), direct to consumer (D2C) and marketplaces. Spryker offers a next-generation solution with a modular, API-first solution that is extensible with the ever-changing business & technology needs of enterprise organizations. We look forward to supporting the Spryker team as they expand internationally and empower businesses in their digital transformation.”

David Klein, Co-founder and Managing Partner at One Peak, said:

“Similar to how Hybris and Demandware led the first wave in commerce infrastructure software solutions, Spryker is now leading the way with a best-of-breed, highly scalable cloud platform which drives sales for its customers. Boris, Alex, and the Spryker leadership team have done an outstanding job in hyperscaling the Company to a global leader in the past three years since our investment, and we are thrilled to continue to support their expansion into the US and beyond.”

Florian Heinemann, General Partner at Project A Ventures, said:

“Since its founding in 2014, we have been excited about Spryker’s development and growth. We are confident that with this new funding and the world-class team, they will become one of the global leaders in e-commerce software. New transactional business models require innovative technical implementation and Spryker is the best solution we know of to do this. For many companies with sophisticated business models, Spryker is the right partner, especially in B2B and marketplaces.”

Oscar Jazdowski, Co-General Partner at SVB, global banking Partner of Spryker said:

“SVB is excited to be part of Spryker’s growing success story. We are extremely impressed by the management team and are convinced that their commerce solutions are building the backbones of today’s enterprises. We are confident that Spryker will successfully scale globally, and we are pleased to provide support with funding and expertise across Spryker’s core markets in Germany, EMEA, and the U.S.”

With $130 million raised in this round, Spryker’s company value exceeds $500 million which makes it one of the fastest growing enterprise commerce software companies ever.

About Spryker:

Founded in 2014, Spryker enables companies to build transactional business models in B2B, B2C, and Enterprise Marketplaces. It is the most modern platform-as-a-service solution with a headless architecture that is cloud-enabled, enterprise-ready, and loved by developers and business users worldwide. Spryker customers extend their sales reach and grow revenue with a system that allows them to increase operational efficiency, lower total cost of ownership, and expand to new markets and business models faster than ever before. Spryker solutions have empowered 150+ companies to manage transactions in more than 200 countries worldwide. Spryker is trusted by brands such as Toyota, Siemens, Hilti, and Ricoh. Spryker was named the most innovative and visionary of all new vendors in the Gartner Magic Quadrant for Digital Commerce and named a major player in B2B e-Commerce by IDC and is the only commerce platform to provide full B2B, B2C, D2C and Marketplace capabilities out of one stack. For more information about Spryker please visit Spryker.com.

About TCV:

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since its inception, TCV has invested over $14 billion in leading technology companies, including more than $2 billion in fintech, and has helped guide CEOs through more than 125 IPOs and strategic acquisitions.

TCV’s investments include Airbnb, AxiomSL, Dollar Shave Club, ExactTarget, Expedia, Facebook, LinkedIn, Netflix, Nubank, Payoneer, Splunk, Spotify, Strava, Toast, Xero, and Zillow. In Europe, TCV has invested over $2 billion in companies including Believe, Brillen.de, FlixMobility, Klarna, Mollie, Perfecto, Redis Labs, RELEX Solutions, Revolut, RMS, Sportradar, The Pracuj Group, and WorldRemit. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

About One Peak:

One Peak is a growth equity firm investing in technology companies in the scale-up phase. The firm provides growth capital to exceptional entrepreneurs with a view to transform innovative and rapidly growing businesses into lasting, category-defining leaders. In addition to Spryker, One Peak’s investments include HighQ, Neo4j, DocPlanner, Keepit, Concentra Analytics, Quentic, Coople, DataGuard, Pandadoc, and Brightflag. To learn more, visit http://www.onepeakpartners.com.

About Project A:
Project A is one of the leading venture capital companies in Europe, with offices in Berlin and London. In addition to $500 M in assets under management, Project A provides its portfolio companies with a wide range of operational support services. This includes more than 100 employees from key areas such as software engineering, business intelligence, marketing, recruiting, and many more. In 2020 Project A was named Germany’s best VC by Business Insider magazine. Project A was founded in 2012 and since then has supported more than 60 start-ups in 12 countries. The portfolio includes companies such as Catawiki, WorldRemit, Homeday, Spryker, sennder, KRY, Trade Republic, and Voi.

About SVB:

For over 35 years, Silicon Valley Bank (SVB) has helped innovative businesses, enterprises and their investors move bold ideas forward, fast. Through its various locations in international innovation centers, SVB offers clients targeted financial services and expertise. No other bank in Germany focuses solely on the innovation economy. Europe’s leading technology and life science businesses, in all stages of development, look to SVB’s niche expertise, experience and unparalleled network, as they grow at home and tackle new markets abroad. Learn more at svb.com/Germany.

Media Contacts:

For more information about Spryker please visit Spryker.com.

Media Contact:

Spryker, press@spryker.com
TCV, Katja Gagen, kgagen@tcv.com, 415 690 6689


Making the Mundane Sexy: How Intuit Turned SMB Bookkeeping and DIY taxes into Massive Business Lines

Dan Wernikoff rose to become an EVP at Intuit and general manager of its small business unit and consumer tax group. In both cases he scaled the business-within-a-business from small groups of early adopters to huge hordes of happy SMBs and consumers, by relentlessly measuring early indicators, leveraging core strengths, and focusing on long-term growth goals.

In this conversation with TCV General Partner Tim McAdam, he shares:

  • Lessons about how selling into SMB markets differs from enterprise
  • The best metrics for tracking success, and
  • Why empathy and understanding matter more than slick ads and sales techniques.

He also explains how to infuse human expertise into SaaS models in a way that fits the SMB/consumer mindset.

For these insights and more, settle back and press play.

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Dan Wernikoff is a former Venture Partner at TCV.

The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.