Digitizing One of the Last Unconnected Markets: Built’s Place in the Multi-Trillion-Dollar Global Construction Ecosystem

$1.58T is spent annually in the U.S. construction industry, yet it’s one of the least digitized industries in the world. Paralleling the shift to digital transformation across other industries, this is beginning to change. That’s just one reason we are delighted to announce that TCV is partnering with construction finance cloud leader: Built Technologies.

Construction may be one of the least digitized industries, but that’s not going to last for long. Builders and owners are expecting digital services, just as they do in all other aspects of their lives. When it comes to financing a construction project, customers around the world should expect seamless communication, payments, and procurement through the convenience of their phone. That’s why we are excited to invest in Built, who is seeking to upgrade the functionality and user experience for everyone in the construction value chain. 

Nashville, Tennessee-based Built offers a cloud-based platform solution for construction lenders, owners, developers, and contractors. Its software acts as a digital workspace to allow all parties to collaborate to get projects built and keep capital flowing to the proper destination. The software is used by more than 150 of the leading U.S. and Canadian construction lenders, in addition to thousands of developers and contractors. 

Built is closely following TCV’s thesis for SaaS as a Network – combining software + payments + marketplace, and connecting all key stakeholders on one platform. SaaS as a Network is a strong model for industries lagging in digital adoption, as products are focused on driving solutions, operational enablement, and strong ROI. We’ve seen this at Toast in the restaurant space – where Toast helps businesses operate more efficiently and grow revenue by providing payments, software and services, or with Clio, where law firms are able to manage their employees, and customers, and enable payments.

We believe SaaS as a Network is markedly increasing the possible expected return and economic strength of vertical sector-serving SaaS platforms, given it takes advantage of end-to-end workflows to build “rails” direct to their merchant’s customers, suppliers, and employees. 

When a SaaS provider starts serving a high enough density of merchants, it can leverage that strength to build two-sided marketplaces with the merchant’s customers, suppliers, and employees. That SaaS vendor has now created a marketplace that can enjoy powerful network effects as seen in consumer marketplaces like Airbnb and Amazon. 

Built’s platform started with a Construction Loan Administration offering that improves communication and operations between banks and their borrowers. Built has grown this offering to over 150 lender customers, representing more than $80 billion of unique construction dollars and is the system of record for these lenders’ construction portfolios. In addition, builders use this system to access their capital—the lifeblood of construction.

By following the flow of money from banks into the hands of builders and owners, the Built team realized there was an even bigger opportunity within the construction ecosystem. They started to build more products around payments and value-added services like on-site inspections and other critical support to enable the construction loan process.

Built was able to accomplish all this due to its product-driven team, led by CEO, Chase Gilbert, who has construction industry experience and understands the real-world buyer pain points. In addition, Chase and the Built team have taken a customer-centric approach that informs everything that they do, especially product design. As we spent time with customers, one of the key themes we kept hearing was the operational efficiencies that Built enabled. All stakeholders involved with the Built platform felt that they were able to operate better through their use of Built.

Since its 2015 launch, the platform has been used to manage the financing of over $135 billion in construction, spanning more than 200,000 commercial, homebuilder, land development and consumer residential projects. All these were factors that led to TCV being the lead investor in Built’s $125 million Series D funding round.

TCV first called on Built in 2017, and our team took the time to build a strong relationship with the executive team.  

“We appreciate the great investing experience TCV brings to the relationship. As a result of its deep customer and technical research, TCV understands our vision and can see just how big an opportunity this is for both of our companies. We’re excited for our future together.”

Chase Gilbert, CEO, Built

While the recent funding is a nice milestone for the team, we are even more excited about the tens of thousands of users that access Built on a regular basis to fund their operations, and the opportunity Built has to build more products and do more to help its customers.

We view our investment as a perfect opportunity to add value. We think Built has a superb window of opportunity, as the world moves faster into a recovery being boosted by widespread embracing of digital ways of working. And, finally, we see huge potential in Built’s ability to connect key stakeholders in the construction process, connecting everyone onto a shared system. We’re grateful for this new partnership with Built and Brookfield Technology Partners, 9Yards Capital, XYZ Venture Capital, HighSage Ventures, and existing investors Addition, Index Ventures, Canapi Ventures, GreenPoint Partners, Nine Four Ventures, Fifth Wall, Goldman Sachs, and Nyca Partners among other individual investors. We look forward to supporting Built’s world-class team on their mission to transform a global market. The addressable market is not just the U.S.’s $1.58 trillion, but the world’s annual $10 trillion construction market.

We believe construction finance on a SaaS as a Network footing presents a remarkable future opportunity. Let’s get something great Built here!

If you’re interested in driving change in the construction finance market, Built is hiring!


An Audacious Goal: How Clio’s Mission of Transforming the Legal Experience For All Is Helping Lawyers Scale

Scaling a company can sometimes feel like a high-speed dash to the top, making it easy to prioritize activities that yield immediate growth. But it can also take time to educate the industries that a company is transforming with tech, and even more time to build trust with prospective customers. These were headwinds facing Clio, today’s leader in cloud-based legal software, when it introduced the first ever SaaS legal practice management software for attorneys.

When Clio launched in 2008, digital transformation was already driving an increasing number of industries towards cloud adoption. Yet in the legal industry, the question wasn’t which product to use. Instead, it was whether attorneys could be convinced that cloud-based applications were usable and secure enough to become part of their core operations. To foster acceptance around the concept of cloud-based legal software, the Clio team knew they had to plan for the long game by investing significant time into educating its market.

In this episode of Growth Journeys, Clio CEO and Founder Jack Newton joins TCV Principal and Clio board member Amol Helekar to discuss why Clio invested in educating an industry that is known for slow adoption as they climbed to the top and became the market leader for cloud-based legal technology.

Here’s what you’ll learn:

  • Why Clio invested in actively educating its market, rather than waiting for the market to come to them
  • How a strong partnership strategy can become an impenetrable moat
  • Choosing a mission statement that can foster growth
  • How to draw clients, employees, and investors into your mission
  • Jack’s tips on fundraising later rounds

To learn more, settle back and press play.

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

Amol Helekar: Welcome to Growth Journeys, a podcast series from TCV focused on lessons from the field from entrepreneurs in TCV’s network. I’m Amol, a principal at TCV, and I’m here with Jack Newton, CEO and co-founder of Clio.

Jack has been instrumental in driving adoption for cloud-based technology in the legal industry. In 2008, he brought the first SaaS legal practice management application to market. Today, Clio is a market leader and the only end-to-end solution for law firms.

As an investor and advisor to early-stage startups, Jack is a nationally recognized speaker and author of the bestselling book: The Client Centered Law Firm. I’m really excited to chat with Jack about how to get a business off the ground in times of uncertainty, how to foster a strong community and how to galvanize the team around a joint mission. Thanks for joining me, Jack, and welcome to Growth Journeys.

Jack Newton: Thanks for having me, Amol, happy to be here.

Amol Helekar: Jack let’s rewind back to 2008. When you founded Clio, you were the first to market cloud-based legal practice management software at a time when businesses were really hunkering down. On top of this, you had a baby on the way, and were working with your co-founder, who is hundreds of miles away in Vancouver.

Talk about a challenge! Many would have shied away, and yet you saw an opportunity there. How did you do it and what kept you going?

Jack Newton: Yeah. Great question, Amol. And what we saw back in 2008 was obviously a really tough macro environment from a financial crisis perspective. Fundraising was extremely difficult, people were really hunkering down and battening down the hatches for the impact of the great recession.

But we also saw at this point in time, a unique opportunity to bring the cloud to legal. When Rian and I came up with the idea for Clio back in 2007, what we saw with the advent of the cloud was a really clear signal that this was a technology and an approach to delivering software that was going to transform virtually every industry in the world.

Amol Helekar: Yeah. And it’s been quite the journey ever since. You know, it’s one thing to identify a market opportunity, but it’s entirely different to convince skeptical customers that there’s a real need for your product. How did you win customers over?

Jack Newton: Yeah, I would say in the early days of launching Clio, we had some customers just rush to the product and give us feedback along the lines of: “I’ve been waiting for somebody to develop a solution like this for me. Thank you. I’m all in.” And they were our most enthusiastic early adopters and that was obviously a very low friction process.

But for a large majority of the early customers we started onboarding there was obvious advantages to the cloud from an affordability perspective, from a total cost of ownership perspective, from an ease-of-use perspective, all of those things were obvious advantages to the cloud. But what was less clear back in 2008, 2009, was whether it was ethically acceptable for lawyers to put their practice in the cloud and to put really sensitive client data in the cloud. They have a very high bar with regard to privacy and security that they need to meet when they adopt and deploy IT infrastructure into their practice.

What we realized pretty early on in that growth journey was we’re going to need to get ahead of that conversation. We’re actually going to need to lead that conversation and educate the space around the security and ethics of cloud computing as it relates to legal professionals. And that was a big lift. We put a lot of energy into thought leadership, into speaking on this across the country, putting on seminars and writing white papers and even advocating at the bar association level for ethics rulings relating to cloud computing. And in the end, we ended up being successful in educating the market on cloud computing and really helping drive cloud adoption in legal, which is traditionally a pretty slow adopter of new technology.

Amol Helekar: Yeah. And I know it takes a lot of effort to build that type of trust amongst your customer base. And you know, something that a lot of people talk about is building a community. How do you go about doing that? What are the steps and how do you maintain momentum?

Jack Newton: Yeah, it’s a great question. And I think when you’re really trying to transform an industry and how it operates, what we realized pretty early on in Clio’s growth journey is that the product isn’t enough. Just having great technology is part of the solution, but it’s not enough to actually drive that true transformation in how an industry operates.

What we realized was we needed to spark a revolution in legal and a revolution in how lawyers thought about delivering legal services to their clients and how they embraced technology as a really foundational and integral part of the value they’re delivering to their clients.

And we’ve spent a decade building this movement around digital transformation in legal, and also around this concept of a client-centered law firm that is thinking about the way they deliver legal services in a completely different way.

This is something we also realize is bigger than any one company can do. We’ve built a huge integration network with over 200 integration partners that have built on top of the Clio platform. We’ve locked arms with bar associations from around the world to help bring the message around digital transformation and client-centered lawyering to lawyers as well.

Amol Helekar: A decade is a long time to build that type of community, but you guys have put a lot into it. Along the way, how did you know you were on the right track?

Jack Newton: I think one of the really early signals is that you’re seeing the snowball effect build from year to year. And I think one of the really important messages for our listeners today is that this doesn’t happen overnight. When you’re making the kinds of investments that we have been at Clio on thought leadership, on building this community, on building customers that will shout from the rooftops about your product, but also help enroll additional customers in the movement that you’re helping drive.

Partnerships are another example that take years to forge. But once you have those relationships built, you’re building a really defensible moat around your business.

Whether it’s through social channels, or other forms of engagement, you’re seeing evidence that the number of people that are enrolled in the movement and the community you’re trying to create is growing over time. And importantly, you’ve got a high net promoter score and they’re pulling more of their colleagues into the fold.

Amol Helekar: Yeah, that’s fascinating. I know one of the aspects of the community is the Clio Cloud conference, which is now the largest legal tech gathering in North America. What is the event all about and what made you invest the time and money to build it to where it is today?

Jack Newton: Yeah, it’s another great example of one of these investments that takes time to build. It’s the largest legal technology conference in North America. And it’s something we’ve put a huge amount of energy in over the last nine years to make successful.

And if we rewind all the way to the very first year we did the Clio Cloud Conference, it was very humble. It was just over 200 attendees and a very modest venue in Chicago, Illinois. We had 4,000 attendees at our virtual edition of the Clio Cloud Conference last year. We had over 2,500 attendees at the in-person Clio Cloud Conference in San Diego the year before that. And it’s an event that is just so energizing for both our attendees and our employees that attend this conference and just get so energized and excited by the opportunity to connect with both our customers and the prospects that attend this conference.

The way we frame this conference with attendees is really this conference is not about Clio. This conference is about innovation and thinking about what the next 10 years of innovation in legal will look like. It’s really a gathering of the best and brightest minds in legal coming together and what’s amazing for Clio is we’ve become an intrinsic part of that discussion. The conference is continuing to build year over year, and I can’t wait to get back to an in-person conference next year for our 10th year anniversary.

Amol Helekar: Yeah. Having attended the Clio Cloud Conference for the past few years now, I can attest to how inspiring it is for customers, employees, and investors too. Everything we’ve talked about is about community building, but it’s also part of your mission to transform the legal experience for all. What does that mission mean to you?

Jack Newton: The mission is really an important part of everything we do at Clio and it’s really become a north star for our company, our employees and our customers attached to our mission. That mission, which is to transform the legal experience for all, is number one, big and audacious.

At the heart of this is a massive access to justice gap. And one of the statistics that I was blown away by the first time I heard it, is that 77% of consumers that had a legal issue, did not see that legal issue resolved by a lawyer. And I describe this as the latent legal market. This is a vast market that is not currently being served by how legal services are delivered today. What I see as the opportunity is to better connect the millions of consumers that have legal issues with lawyers that can help them solve those legal issues.

Jack Newton: But to do that, we both need to create more efficiency and ease around accessing legal services in the first place. Most consumers are scared off by how lawyers price their services. They’re scared off by the idea of paying 400 plus dollars an hour to arrive at a solution to their legal problem. We believe what Clio, in particular, and what technology in general will enable law firms to do is to deliver their services in a much more efficient way. In a way that is more affordable and accessible by the average consumer, that automates big parts of what is done manually today.

And importantly is delivered over the internet. What we’ve seen over the course of Clio’s 10-plus years of growth is a very steady march away from on-premise law systems and bricks and mortar law firms toward a new cloud-based era where lawyers are delivering their legal services online and they’re delivering them in a client-centered way.

Ultimately, we believe being a cloud based and client centered law firm is what is going to unlock our ability to achieve this audacious mission to transform the legal experience for all.

It’s something that inspires not just “Clions,” which is our nickname for our employees, but also inspires our customers and inspires our broader integration partners. Because everyone understands that this mission is so deeply important and something that is going to be good for the public.

But it’s also, if we execute on this well, going to help make lawyers more successful. It’s going to help make lawyers feel like they’re truly bridging that access to justice gap that frustrates so many lawyers today.

It’s a big audacious mission. It’s exciting. It’s so multifaceted in terms of how we’re realizing it. But it is something that inspires our team on a daily basis.

Amol Helekar: Absolutely. And you know, some companies simply put a mission statement on their website, but Clio is really embracing yours. So how did you put that mission into practice across your business?

Jack Newton: I think when you arrive at a mission that is truly resonant with your team and you see the impact and inspiration it can drive in your team, you need to make it a part of your daily discourse. And that’s exactly what we’ve done at Clio.

We’re making decisions around how much this helps accelerate our ability to achieve our mission.

I believe that there’s also a huge role in the importance of the mission as it relates to recruiting. There’s an increasingly large percentage of the talent that’s out there today that is not just looking for pay and benefits as the important factors they’re looking at in the company they choose to work for.

We’re able to recruit the best talent on the planet in large part, thanks to a mission that is powerful and resonant. I really can’t understate how important that is to the overall success of a company, especially when you’re thinking in the long-term and thinking about building a multi-decade company.

Amol Helekar: I can tell you’re really passionate about it and how important it is to Clio’s success. You know, some people feel there’s a tradeoff between tackling the mission or driving growth. You’ve seen both tremendous growth and progress against achieving your mission. What’s your secret to achieving that?

Jack Newton: So, yeah, Amol completely agree. I think we’ve been really successful in pursuing both a mission that resonates and driving extraordinary growth and, and rather than being at odds with each other, I think in a lot of ways we’ve actually seen these be in service of one another. What we really talk about is, is our growth is what enables us to have broader impact and to achieve our mission.

The energy needs to go into finding how you can actually build, a bit of a flywheel where the progress you’re seeing on your mission and the team, and customers, and the broader movement that is helping attach to your mission is actually helping drive your overall flywheel of growth.

Amol Helekar: It’s something that Clio has put a lot of effort into and has been able to execute against. You know, over the years you’ve grown tremendously and successfully raised your series D and E rounds. Any advice you’d give to entrepreneurs who are fundraising?

Jack Newton: Yeah, absolutely Amol. One thing is you need to be executing really well and have a long-term vision that you’re talking about with investors and hopefully inspiring them in a way that they want to be part of that story and part of that mission and want to be partners with you in realizing that mission.

If you look at how lawyers practice today in the year 2021. In a lot of ways, it’s not that different from how they were practicing in the year, 1981. And when you’re looking at that scale of transformation, that scale of opportunity, it can be just such a gigantic opportunity that is hard for investors not to get excited about the opportunity.

The second piece, I think that is really exciting about the Clio opportunity in particular, but in general, something entrepreneurs can think about when they’re fundraising is, are you driving the kind of transformation in your industry that will actually expand the TAM of your customers? As a first step, can you expand the TAM of what your customers are able to address?

And with Clio, if we’re successful in our mission, we’re going to allow our customers to address that latent legal market which will vastly expand the TAM of the legal industry. Which in turn will expand our TAM as well. So that’s been one part of our story that I think is, is really powerful and exciting.

But Amol maybe you’re best positioned to comment on, on what attracted you to Clio in particular and what attracts you to companies in general. What advice do you have for other mission-driven founders and entrepreneurs?

Amol Helekar: I think to your point, investors are really recognizing how important it is for companies to have a strong vision and a culture that supports their growth agenda. So being mission-driven is not only great for the broader community. It also leads to stronger company culture, a deeper focus on the product and the customer experience and brand.

And ultimately this is in service of the company’s growth over time and can differentiate it in the market as it has for Clio. My advice to other entrepreneurs is to lean into their company’s mission statement and really incorporate that statement into the company’s products and growth strategies and to consider it central to their culture, rather than at odds with the growth agenda.

Jack Newton: I love that.

Amol Helekar: Jack, thank you. This has been an incredibly educational and inspiring discussion. It was great to have you on Growth Journeys today. And thanks to all of you out there for listening.

Jack Newton: Thanks for having me, Amol. It was a great conversation.

***

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/.


Kipu Appoints Healthcare Technology Veteran Anita Pramoda to Board of Directors

CORAL GABLES, Fla, August 25, 2021–Kipu, maker of KipuEMR, a modern SaaS-based electronic medical records (EMR) system for substance use disorder (SUD) and behavioral health treatment organizations, today announced the appointment of health technology veteran Anita Pramoda to its board of directors.

“Kipu has time-tested software solutions for substance abuse centers and continues to invest in innovation to help providers improve outcomes and navigate reimbursement changes. Now is the time to accelerate our market leadership. We push ourselves to innovate and integrate our technology platform to enable world-class performance for our customers and their patients.  With her deep experience advising growth technology companies, Anita is ideally suited to support us in this task,” commented Kipu’s CEO, Paul Joiner.

A seasoned healthcare IT leader, Pramoda is founder and CEO of Owned Outcomes (O2), a software company that helps participating organizations win at various forms of value-based care including bundled payments. She was previously CFO at Epic Systems Corporation, a $3 billion+ healthcare IT company, which provides electronic medical records for over 50% of the U.S. population. Pramoda helped lead a period of significant domestic market growth, Epic’s expansion into the governmental and international markets, and its launch into mobile health IT. Pramoda also brings vast healthcare IT board experience from serving on the boards of leading companies such as Allscripts (NASDAQ: MDRX), Health Catalyst (NASDAQ: HCAT), Press Ganey, and HealthEdge.

Commenting on the new opportunity at Kipu, Pramoda said, “This is a company targeting an underserved area within healthcare, supporting patients as they heal from addiction and other harmful behaviors – which have been at an all-time high during the pandemic. Behavioral health and substance abuse treatment are nuanced, heavily regulated and complex areas within healthcare.  Kipu’s foundational strength is its absolute focus on creating a purpose-built EMR solution and suite of applications singularly focused on this market. To have workflows and features that are purpose-built for these specific needs makes Kipu’s business important and special, and it’s exciting to be part of the company’s journey.”

The appointment follows the company’s June announcement of TCV’s strategic investment in Kipu as market momentum for SaaS solutions accelerates in behavioral healthcare.

About Kipu

Kipu is the leading enterprise software provider serving the substance use, mental health, and eating disorder communities with its cloud-based technology platform. The KipuEMR, a fully configurable electronic health record and integrated billing platform designed for — and within — the behavioral health industry, is the largest and most widely implemented EMR purpose-built for the addiction treatment industry. Kipu’s platform is used daily by more than 80,000 users at more than 1,600 facilities, globally. The KipuCRM is a companion platform that manages the entire patient life cycle from the very first call through admission, integrating call center, referral, and marketing campaign management. To read the latest news on Kipu, please visit https://www.kipuhealth.com/kipu-news/ and connect with us on: Facebook | Twitter | LinkedIn.

Media Contact

Kipu
Sue Yap
Sue.Yap@kipuhealth.com


Kipu Announces Strategic Investment from TCV – Appoints Paul Joiner as CEO and Rick Pharr as COO

CORAL GABLES, Fla., June 14, 2021 /PRNewswire/ — Kipu, maker of the widely-used KipuEMR, an electronic medical records (EMR) system specifically designed for substance use disorder (SUD) and behavioral health treatment organizations, today announced the appointment of two senior leaders and a strategic investment from growth equity firm TCV. As Kipu embarks on its next chapter of growth, the company has hired Paul Joiner as its new CEO, and Rick Pharr as its new COO. Paul and Rick bring deep industry expertise, including scaling multiple healthcare technology companies to several hundred million in revenue.

Kipu’s EMR and other software and value-added solutions are utilized daily by leading operators in the substance use disorder treatment and behavioral health industry. According to a March 2021 study published in JAMA, hospital costs in the U.S. for treating substance use disorder (SUD) and related health conditions total more than $13 billion annually. The total cost of treatment for all behavioral health disorders accounts for roughly 5% of total healthcare spending in the US, representing over $200 billion per year.

“Kipu is the category leader with tremendous momentum,” says TCV General Partner Nari Ansari and a member of the Kipu board of directors. “The company’s suite of software applications intelligently leverages data in all phases of patient care, enabling behavioral healthcare providers to improve patient outcomes and drive operational efficiencies. Kipu gives caregivers on the front lines the capabilities they urgently need to care for patients, while also helping their organizations succeed. We look forward to supporting the Kipu team as they help a growing number of client partners manage the entire patient life cycle.”

Paul Joiner is an accomplished leader in the healthcare industry who will join Kipu later this month. He comes to Kipu from Availity, a healthcare information technology network serving many of the largest and most respected provider and payer organizations in the US. As Availity’s COO, Paul was a major force for growth and innovation, nearly doubling the company’s revenue during his tenure. Paul served previously as VP of Corporate Development & Payer Solutions at Passport Health Communications, which was acquired by Experian in 2013.

“The behavioral health industry is the latest sector in healthcare to benefit from digital technology,” says Paul Joiner. “I am excited to join Kipu and support their mission to deliver end-to-end technology solutions that enable providers and patients to communicate effectively and deliver the best care and outcomes. With TCV’s backing, and building upon Kipu’s market-leadership position, we plan to invest heavily to accelerate Kipu’s technology platform innovation and continue to develop fully integrated software applications to drive relentless, market-leading innovation and world-class performance for our customers and their patients.”

Rick Pharr joins Kipu as COO after a successful tenure at WebPT, a provider of EMR and business management applications for the physical and other therapy markets. During his time as SVP of Operations, WebPT scaled to serve a client base of more than 20,000 clinics. Rick also led WebPT in providing exceptional customer experience, as evidenced by the company’s industry-leading net promoter score (NPS).

“Kipu has achieved significant momentum by helping customers deliver the best outcomes in the behavioral health field in recent years,” says Rick Pharr. “Having spent my career building businesses that focus on customer outcomes, I look forward to serving Kipu’s customers as they put the recovery of their patients above anything else. I’m eager to help the Kipu team take first-in-class customer experiences to the next level to become the gold-standard in the industry.”

TripleTree acted as advisor to TCV in connection with its investment.

About Kipu
Kipu is the leading enterprise software provider serving the substance use, mental health, and eating disorder communities with its cloud-based technology platform. The KipuEMR, a fully configurable electronic health record and integrated billing platform designed for — and within — the behavioral health industry, is the largest and most widely implemented EMR purpose-built for the addiction treatment industry. Kipu’s platform is used daily by more than 80,000 users at more than 1,900 facilities, globally. The KipuCRM is a companion platform that manages the entire patient life cycle from the very first call through admission, integrating call center, referral, and marketing campaign management. To read the latest news on Kipu, please visit https://www.kipu.health/kipu-news/ and connect with us on: Facebook | Twitter | LinkedIn.

About TCV
Founded in 1995, TCV was established with a clear vision: to capture opportunities in the technology market through a specialized and consistent focus on investing in high-growth companies. Since inception, the firm has built a track record of successfully backing public and private businesses that have developed into innovative industry leaders across the internet and software sectors.

TCV has invested over $15 billion to date and has helped guide CEOs through more than 130 IPOs and strategic acquisitions. TCV has invested in cutting edge technology companies including Airbnb, Avalara, AxiomSL, Brex, ExactTarget, Facebook, Netflix, Peloton, Spotify, Zillow, Clio, Klarna, Payoneer, Revolut, Toast, Trade Republic, Wealthsimple and WorldRemit. TCV has successfully executed over 350 investments of varying structures, including mid-stage, late-stage, and public company investments, and has offices in Menlo Park, New York, and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

Media Contacts
Kipu
Sue Yap
Sue.Yap@kipu.health 
561-708-6798 

TCV
Katja Gagen
kgagen@tcv.com 
415-690-6689

SOURCE KipuHealth


FarEye Helps Enterprises Delight Their Consumers at Every Step of the Journey

By Gopi Vaddi, General Partner at TCV

After perusing slick digital shopfronts for hours, checking AI-enabled online catalogs, and paying through seamless single-click checkouts, you may eventually be rewarded with ‘your delivery should arrive in 5-10 working days’ and left to pray that the shiny new gizmo you ordered will arrive in one piece. Sound familiar? For all the innovation and investment across most steps of the online purchasing journey, the actual delivery experience has been largely neglected. Yet, the surge in remote purchasing shows no signs of abating and consumers are demanding faster, better, and cheaper deliveries. This has placed the status quo under immense strain and the need for new solutions to help companies navigate this complexity today is greater than ever.

A New Frontier for Innovation in E-Commerce Enablement

E-commerce enablement has been a key investment theme for TCV, and we have made multiple investments across each step of the value chain. In early 2019, we invested in RELEX Solutions (Helsinki, Finland) which provides an AI-driven platform helping global retailers forecast demand and prepare their supply chain to execute against it. In 2020, we backed Spryker (Berlin, Germany) which helps enterprises build beautiful digital commerce platforms for B2B, B2C, and marketplaces. We also invested in Mollie (Amsterdam, Netherlands) which provides a seamless, easy-to-integrate online payments solution for merchants across Europe. Another recent investment is Trulioo (Vancouver, Canada) which provides seamless know-your-customer (KYC), and know-your-business (KYB) verification checks globally, enabling smooth onboarding of merchants and consumers onto online marketplaces and fintech platforms. Paradoxically, while the e-commerce experience may appear increasingly effortless for consumers, the underlying technology landscape has become increasingly sophisticated and complex.

Following our investments upstream in the ecommerce value chain, we cast our eye further down, identifying logistics as the natural next step. Within this untapped, vast market, last-mile delivery from a fulfilment center to a delivery endpoint like a consumer home has always been the most operationally complex and resource-intensive leg of the journey, absorbing nearly 50% of total logistics dollars spend, driven by inherent lack of economies of scale (disparate drop-off points) and its on-demand nature. Complexity has also compounded due to new delivery and fulfilment modes like micro-fulfilment centers, curb-side pick-up, etc. which strain already razor-thin margins for retailers and carriers alike. Even Amazon, the most sophisticated logistics machine in the world, has not been spared — as a percentage of retail-related sales, Amazon’s cost of fulfilment/shipping grew from ~16% to 32% between 2010-19. On the end-consumer front, delivery experiences have become a critical driver of satisfaction and repeat purchases, with delivery constituting the only physical touchpoint for online brands with their customers. In fact, 55% of US consumers have bought goods from one retailer over another because they provided more delivery options[1]. Throw all of the above in the mix and you have a market that is ripe for disruption. Enter FarEye – a next-generation intelligent software platform that helps enterprises to orchestrate all of their delivery logistics requirements.

We were thrilled to recently announce our investment in FarEye. Founded in India in 2009 by Kushal Nahata (CEO), Gautam Kumar (COO), and Gaurav Srivastava (CTO), the trio started their journey as logistics consultants, before settling on their strategy of building a software platform that would help companies navigate the immense complexities of managing last-mile deliveries. Having spent several years developing the product in India and South-East Asia, where delivery logistics challenges are even more pronounced than in Western economies, FarEye relocated headquarters to Chicago and moved towards global expansion, addressing the vast demand across Europe and the U.S.

Compelling ROI and an Enormous Market Opportunity

We first came to know FarEye through its superlative customer feedback and enormous ROI generated for customers – 22% improvement in first-attempt deliveries, two times improvement in courier satisfaction, and 24% increase in on-time deliveries all while providing complete visibility across the entire logistics operations. Spurred by these reviews, we got in touch with Kushal and were blown away by the depth of the platform as well as Kushal’s strategic and product vision.

The FarEye platform provides an incredible range of end-to-end functionality today — all deployed on fully multi-tenant, cloud-native infrastructure — that benefits retailers, carriers, manufacturers, and end consumers alike. Shippers and carriers benefit from automated order allocation and dispatching, real-time dynamic routing, loop optimization and electronic proof of delivery; their customers get slot-based & flexible delivery scheduling, automated alerts and notifications, the ability to real-time track their deliveries, and 24/7 chatbot-based customer support. FarEye also empowers enterprises with the latest advances in real-time tracking and tracing, ETA prediction based on real-time constraints such as traffic bottlenecks, and control-tower visibility of enterprise delivery activity.

At the heart of the FarEye platform is a low-code BPM engine that allows users to rapidly build delivery workflows that can be customized to meet the demands of a particular industry and customer. Customers today span hot-food delivery, pharmaceutical, packaged goods, housewares, industrial equipment, and more. FarEye even counts some of the largest global carriers among its clients. FarEye Delight has helped the company to quickly expand its existing customer base which increasingly rolls out the platform across new geographies and business units while growing its functionality with net retention that is best-in-class.

As e-commerce and broader home-delivery become the new normal, retailers across the world are racing to adapt, while those that do not face the risk of quickly falling behind. For TCV, FarEye is an excellent fit with our overarching strategy of investing early in what we believe to be the franchise technology companies of the future – no matter where they are founded. FarEye joins Cognite, Trulioo, Redis Labs, Revolut, Relex, Nubank, Klarna, Mambu, Mollie, Spryker, and Dream Sports among recent investments made outside the U.S. Based on our experience investing in many other global leaders that were once young growth-stage companies, we believe FarEye has the technology, talent, expertise, and strong track record to become a truly generational software business of the future.

***

The views and opinions expressed are those of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any of the data or statements by the author 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 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/.


[1] MetaPack Global eCommerce Consumer Report, 2020


FarEye Announces $100 Million Series E Round Led by TCV and Dragoneer

LONDON, May 25, 2021 /PRNewswire/ — FarEye, a leading end-to-end, global delivery management platform, has announced a USD 100 million Series E round led by TCV and Dragoneer Investment Group. Existing investors Eight Roads Ventures, Fundamentum and Honeywell also participated in the round. The funds will be used to accelerate the company’s mission of empowering brands to provide Amazon Prime-like delivery experiences and redefining how products are delivered across diverse logistics networks. FarEye will further focus on expanding its software platform capabilities, drive European and North American expansion, and continue to attract world-class talent. As part of the transaction, Gopi Vaddi, General Partner at TCV, will join FarEye’s board of directors.  

Founded in the year 2013 by Kushal Nahata, Gaurav Srivastava, & Gautam Kumar, FarEye is addressing a multi billion dollar delivery management market that continues to show double digit year on year growth. 

“We are very proud to have TCV and Dragoneer join our established investors to support our progress in becoming a global leader in delivery management,” Kushal Nahata, CEO and co-founder of FarEye, said. “The funding is very timely for the delivery and logistics sector as we have seen consumers spending $861 billion online with U.S. retailers in 2020, up 44% from $598 billion in 2019. The growth and the digital transformation in the logistics sector has created an opportunity for software platforms like FarEye to provide a superior customer experience. Our ambition is to enable thousands of businesses to provide Amazon-Prime-like delivery experience, and we aim to drive innovations that re-imagine how deliveries are being managed globally,” added Nahata.

FarEye’s intelligent & sophisticated platform is used by brands to launch and champion multiple delivery models like same-day, next-day, on-demand, and curbside from multiple inventory locations. More specifically, FarEye enables enterprise to:

  • Manage the end-to-end process of delivering goods or services to consumer and enterprise customers across both 3rd party and in-house fleet models
  • Provide end-customers with a positive delivery experience, all while significantly lowering logistics costs and giving unparalleled visibility and control across the entire process
  • Leverage a highly modular, cloud-native and low-code platform, which allows clients to build individualized workflows to suit their unique delivery requirements while ensuring the fastest time to value
  • Handle enterprise-scale volumes and compliance requirements

FarEye currently serves global enterprises across retailers, manufacturers and third-party logistics providers & carriers, including DHL ecommerce, Amway, Dominos, Walmart, Posti, Gordon Foods, UPS and more.

The company’s platform processes over 100 million transactions each month, supports more than 25,000 drivers, and is integrated into a network of over two million vehicles. FarEye’s growth has accelerated over the last 12 months with particularly strong traction in Europe and North America. These markets collectively comprise over half of revenues and have grown nearly three times in the same period.

FarEye was recently recognized by Gartner in their inaugural Magic Quadrant for Real-Time Transportation Visibility Platforms.

To support continued expansion, FarEye has also hired a number of senior executives over the last year including a new CRO, Amit Bagga (formerly President of APAC at BlueYonder and strategic sales leader at Oracle), and a new CPO, Suvrat Joshi (former executive at Dropbox, Amazon, Facebook, Microsoft).

Gopi Vaddi, General Partner at TCV, said: “The logistics and supply chain industry is going through a long awaited software-led creative disruption, led by emerging leaders like FarEye that provide multi-tenant SaaS platforms with low code configuration to enhance visibility to the enterprise and deliver superlative last mile experiences for the end consumer. We, at TCV, are pleased to partner with Kushal, Gaurav,  Gautam and the entire management team. We have been impressed with FarEye’s platform capabilities and their long-term vision as a key enabler for digital transformation in logistics.”

“FarEye’s leading delivery management platform provides impressive visibility and control across the supply chain, which has never been more critical for retailers, manufacturers and 3PLs,” said Eric Jones, Partner at Dragoneer Investment Group. “We look forward to partnering with FarEye as they continue to redefine how products are delivered across diverse logistics networks and expand their footprint in Europe and North America.”

About FarEye: FarEye’s Intelligent Delivery Management Platform is making the delivery experience better for everyone. FarEye enables enterprises to deliver at reduced cost with a superior customer experience.

About TCV: Founded in 1995, TCV was established with a clear vision: to capture opportunities in the technology market through a specialized and consistent focus on investing in high-growth companies.

About Dragoneer Investment Group: Dragoneer is a growth-oriented investment firm with over $17 billion in long-duration capital from many of the world’s leading endowments, foundations, sovereign wealth funds, and family offices.

Media Contacts

FarEye
Komal Puri
komal.puri@getfareye.com

TCV
Katja Gagen
kgagen@tcv.com
+1 415 690 6689


Cognite Secures $150 Million Investment from TCV to Accelerate Digitalization of Global Industries

May 19, 2021 08:50 AM Eastern Daylight Time

OSLO, Norway & AUSTIN, Texas– (BUSINESS WIRE) —Cognite, a global leader in industrial software innovation, announced today that it has signed an investment round of $150M with leading global growth equity firm TCV, valuing the company at $1.6B. This investment marks one of the largest funding rounds for a SaaS company in Europe and confirms industrial digitalization as a global megatrend. The new valuation round constitutes unicorn status for Cognite.

“Cognite is building the future by redefining modern industrial data management,” said Jake Reynolds, General Partner at TCV.

“Cognite has had a remarkable growth journey since its founding in 2017, attracting top talent from across the globe, working feverishly to develop, deploy and verify the impact from its industrial software technology. As the global growth continues across industry verticals, there is significant interest from companies to partner with Cognite. We are very pleased to welcome TCV, a top-tier growth equity firm, on board, especially given their strong track record from building and scaling enterprise software companies globally,” said Øyvind Eriksen, President and CEO of Aker. “The investment is a testament to the Cognite growth journey so far and to its future potential. Moreover, it highlights the significant value creation taking place in Aker’s industrial software portfolio.”

TCV has a broad network and expertise in successfully scaling technology companies, including Netflix, OSIsoft, Splunk, Airbnb and Spotify. This new partnership allows Cognite to harness TCV’s expertise in international expansion for industrial software companies and complements earlier funding by global venture capital firm Accel, as both are committed to backing category-defining businesses. The partnership coupled with Aker, Cognite’s majority stakeholder, will accelerate the full-scale data-driven transformation of legacy industries to help make them more sustainable and profitable through digitalization and data. As part of the transaction, Jake Reynolds, general partner at TCV with a 20-year history in venture capital and technology investing, is joining the Cognite Board of Directors.

“Cognite is building the future by redefining modern industrial data management,” said Jake Reynolds. “Cognite is emerging as a leader of the pack through their proven industrial software-as-a-service (SaaS) solutions as the world turns to digitalization to truly transform, and we look forward to partnering with them to revolutionize the industry as they grow and scale.”

Cognite’s flagship Industrial Data Ops product: Cognite Data Fusion (CDF) is currently digitalizing asset-intensive industries globally by making industrial data more accessible and meaningful to humans and machines, enabling clients to create value through AI-based applications and solutions. CDF is also a critical tool used by companies to actively participate in the energy transition through data liberation and contextualization to address transparency, accountability, and sustainability. CDF is deployed by Cognite customers worldwide including: bp, Saudi Aramco, Alfa Laval, Statnett, and Mitsubishi.

“Cognite is on a strong trajectory to help transform industry, and since our founding four years ago, we have managed to attract top global talent, and partner with top industrial companies to accelerate modern industrial data management worldwide,“ said Dr. John Markus Lervik, CEO and co-founder of Cognite. “The partnership with TCV allows us to amplify our software solutions to empower asset-intensive businesses to improve their sustainability and profitability of operations, and perfectly complements the extensive industrial knowledge brought in by our majority shareholder, Aker.”

Cognite continues rapid expansion, growing in valuation threefold since November in part due to a global collaboration with Microsoft and inclusion as a Top 200 Global Independent Software Vendor (ISV), a partnership with Accel, and post COVID demand for digitalization across industries. Cognite was founded in 2017 and is one of the fastest-growing industrial software companies in the world with over 500 employees across offices in Europe, the United States, Asia, and the Middle East.

About TCV

Founded in 1995, TCV was established with a clear vision: to capture opportunities in the technology market through a specialized and consistent focus on investing in high-growth companies. Since inception, the firm has built a track record of successfully backing public and private businesses that have developed into dominant industry players across internet, software, FinTech, and enterprise IT. TCV has invested over $14 billion to date and has helped guide CEOs through more than 125 IPOs and strategic acquisitions. TCV has invested in cutting edge technology companies including OSIsoft, Airbnb, Brex, ByteDance, Facebook, Hotmart, Netflix, Peloton, Spotify, Zillow, Clio, Redis Labs, Klarna, Mollie, Nubank, Payoneer, Revolut, Toast, Wealthsimple and WorldRemit. TCV has successfully executed over 350 investments of varying structures, including mid-stage, late stage and public company investments, and has offices in Menlo Park, New York, and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

About Cognite

Cognite is a global industrial software-as-a-service (SaaS) company supporting the full-scale digital data-driven transformation of asset-intensive industries around the world. Our core product, Cognite Data Fusion (CDF), is an industrial data operations and contextualization platform, putting raw data into real-world industrial context, enabling rapid application & solution creation at scale. CDF powers companies with contextualized OT/IT/ET data to develop solutions that increase safety, sustainability, efficiency and drive revenue. Visit us at www.cognite.com and follow us on Twitter @CogniteData or at LinkedIn: https://www.linkedin.com/company/cognitedata

Media Contacts

Michelle Holford Global PR Lead, Cognite
+1 (512) 744-3420 (US) or +47 482 90 454 (Norway)
michelle.holford@cognite.com

Katja Gagen Head of Marketing at TCV
+1 (415) 690-6689
kgagen@tcv.com


Toast Announces $400M in Series F Funding

OSTON–(BUSINESS WIRE)–Toast, the fastest-growing restaurant management platform in the U.S., today announced a $400M Series F funding round led by Bessemer Venture Partners, TPG, Greenoaks Capital, and Tiger Global Management with participation from Durable Capital Partners LP, TCV, funds and accounts advised by T. Rowe Price Associates, G Squared, Light Street Capital, Alta Park Capital, and others.

Focused on empowering restaurants of all sizes to compete on a level playing field with global brands, Toast has quickly become the go-to partner for the restaurant industry, from entrepreneurs opening their first restaurant to enterprise brands scaling across hundreds of locations. During the course of 2019, revenue increased 109 percent as tens of thousands of new restaurants joined the Toast community.

“As a result of our tremendous growth and commitment to the restaurant industry, we have continued to see a significant amount of demand from the investor community,” said Chris Comparato, CEO at Toast. “As the clear platform leader in the restaurant space, we are excited to use this investment to extend our capabilities and drive a bigger impact for the restaurant industry.”

Toast will invest proceeds from this fundraise into its technology platform to meet the evolving needs of the restaurant industry including:

  • New products designed to both deepen restaurateurs’ connections with guests and increase restaurant revenue;
  • Hardware and software investments to increase speed of service, streamline the guest experience, and reduce operational costs;
  • Capabilities to improve the restaurant employee experience, reduce employee turnover, and address the industry’s pressing labor challenges; and,
  • Financial products that provide quick and reliable access to funding to help restaurateurs grow their businesses.

“Just as the retail industry weathered disruption from e-commerce over the past two decades, restaurateurs now face shifting consumer expectations and a changing landscape of tech players who threaten to erode restaurant brands,” said Kent Bennett, partner at Bessemer Venture Partners. “Toast wants to partner with the restaurant community to level the playing field and strengthen this nearly trillion dollar industry. We’re thrilled to continue to support this incredible team in 2020 and beyond.”

Restaurant owners and operators can learn more about Toast and schedule a personalized demo here.

About Toast
Launched in 2013, Toast is democratizing technology for restaurants of all sizes. Built exclusively for restaurants and driven by a passion to enable their success, Toast connects employees, operations, and guests on an easy-to-use platform so restaurateurs can stay one step ahead of a rapidly evolving hospitality market. Tens of thousands of restaurants partner with Toast to increase revenue, streamline operations, retain great employees, and create raving fans. Toast was named to the 2019 Forbes Fintech 50, 2019 SXSW Interactive Innovation Finals, and 2019 Forbes Cloud 100. Learn more at www.pos.toasttab.com.

Contacts

Karen DeVincent-Reinbold
Sr. PR & communications manager
media@toasttab.com
857-301-6074

Katja Gagen
TCV, Marketing
kgagen@tcv.com
415-690-6689