Recently, a start-up company named LeadIQ, while working on the sales software market, announced that it had done a deal of $30 million series B, which is led by Cathy Innovation. However, there are other investors included in this marvelous venture, namely Fresco Capital, Eight Roads Ventures, and even Strong Ventures.
While LeadIQ was busy dealing with the framework of its product from the point of view of missed revenue target companies, it at the same time claimed its impact on nearly two-thirds of today’s deals. So, how did LeadIQ do it? The start-up’s service is primarily designed to work on and rescue the sales staff time by taking on the data entry work by continuing with the lead capture from the sales prospecting matters. There are several products linked with LeadIQ which cover an individual’s prospecting efficiency and which later get subdivided by the performance of the workers and into more general breakdowns such as industry or even the size of the company.
Earlier, LeadIQ successfully raised $12 million, although the company informed some of the online sites that they had only spent $6 million of that total, even while they were reaching for the eight-figure ARR.
Therefore, the question remains, what is the need to raise more capital if it doesn’t require the funds? So as the CEO told, LeadIQ is taking a step forward to support account management rather than merely lead the management. Yes, building new products is costly; therefore, more capital is required, which will help the company staff up for the job being done.
Why should LeadIQ work on sales account management?
Yes, instead of simply focusing on the leads, LeadIQ must work on sales account management. The reason is this effort will surely help the sales team to work better along with the marketing teams. The CEO compared marketing alike to fishing with a net because sales are more like hunting fish by using a spear. And the account-level tooling now leads to more fulfilled information and extends the analogy while hoping to give the sales team a better shot when they intend to catch more fish.
The company has always been efficient to date. However, thriftiness is the only virtue in the start-up world to achieve rapid growth. And LeadIQ has successfully hit the mark. How? Well, by growing the annual recurring revenue or ARR by around 3x in the previous year. The company also swears by the overall retention number of about 125%, leading to the comparison between customer acquisition costs versus a huge ratio of the account’s magnitude.
Thus, LeadIQ rounding up more data point help us vividly understand that a current market is more likely a sales-focused software. It also appears to be an active sector, with other sales software services raising $250 million in investment in the previous year and, subsequently, $200 million in August 2020. This is more like “the revenue intelligence” market instead when it was raised this June.