About Outreach
Outreach enables companies to dramatically increase revenue by helping sales reps and leaders increase their productivity. The company uses AI and the world's largest customer interactions database. Outreach automates contacts by email, voice, and social media.
Unlike traditional CRM systems, Outreach is more than just a customer database – the platform allows you to translate data into marketing strategies. It helps a sales team take the right targeted actions that bring a customer to a purchase.
According to Forrester’s study, Outreach pushed sales productivity up by 11%. Moreover, the company delivers a 5x return on investment, and businesses break even on cost in less than 3 months.
More than 4,800 companies such as Adobe, Tableau, Splunk, DocuSign, and SAP depend on Outreach's products. Outreach is the only sales engagement and intelligence platform to make the Forbes Cloud 100 three times in a row, and also be the 58th fastest-growing vendor in the category on the Deloitte Technology Fast 500.
Business Growth Phase
Market Opportunities
The CRM market size was valued at $42B in 2019 and is projected to reach $96B by 2027, growing at a CAGR of 11% from 2020 to 2027.
At the same time, the segment of the sales engagement software in which Outreach operates is considered to be one of the most dynamic and fast-growing in sales technology. In 2017, it was valued at $1.6B and is projected to reach nearly $6B by 2023. 92% of sales development organizations rank sales engagement platforms as critical to their team’s success.
Outreach’s important advantage has to do with many tech integrations with traditional CRM systems such as Salesforce, Microsoft Dynamics, SugarCRM, and with email services, various analytics systems, voice services, etc. This allows companies to adapt Outreach for operations with ease, without changing their customary services.
Financials and Valuation
Outreach was founded in 2014. The June 2021 Series G round brought the company's total valuation to $4.4B, three times more than in Series F, the previous round a year ago.
Salesforce Ventures, Steadfast Capital Ventures, Sequoia Capital, Tiger Global Management, Lone Pine Capital, Sands Capital, Mayfield Fund, DFJ Growth, Trinity Ventures, and others have invested in the company.
Risks
The CRM market is highly competitive. Traditional players such as Salesforce, Zendesk, ZohoCRM offer more and more tools for marketing campaign analytics, email automation, etc. At the same time, they have more resources for development than smaller players.
Outreach and its competitors (Salesloft, Groove, Gong) are still in the early stages of development. Despite the recognition of the software as the key to the efficient functioning of the sales department, the market is still small.
Low liquidity: investing in private companies at the pre-IPO stage is an opportunity to make money over a few years. If you exit early, the price may be significantly different from the purchase price or the selling process may take more than 1 month.