Pipedrive, which sells a SaaS designed to help companies manage and increase sales, has closed a deal of its own today. The startup and graduate of AngelPad, the San Francisco-based accelerator set up by ex-Googlers, has raised a further $700k in funding, bringing its total to $1 million.
The new seed round comes from TMT Investments and angel investors Andy McLoughlin, who co-founded Huddle, and Christopher Muenchhoff. Both McLoughlin and Muenchhoff participated in Pipedrive’s previous ‘advisory’ round late last year.
Always be closing, as they say.
The decision to take further funding wasn’t entirely clear cut, says Pipedrive co-founder and CEO Timo Rein, since the company has been cashflow positive for a while now, having reached the milestone of 1,000 paying customers for its ‘deal pipeline management software’ (also known as a CRM) back in April. These span 65 countries, and include startups like KISSMetrics, Udemy, Fortumo, TechStars and Onswipe, as well as mid-sized companies “with hundreds of seats”.
“We flirted with the idea of self-funding future growth, raising an additional round allows us to realise our plans faster”, says Rein.
Specifically, the extra funds will be used for hiring more developers out of its Tallinn, Estonia base, and to increase Pipedrive’s presence in the U.S., its biggest market and also where the company is incorporated. Headcount currently stands at 15, and should reach 20 by the end of the year.
Meanwhile, Pipedrive recently rolled out an API that enables its CRM solution to be integrated into third-party software and services. Eating its own dog food, Rein tells me that mobile apps for iOS and Android, powered by the API, should see the light of day in the coming weeks.
Operating in a very crowded space, Pipedrive claims that it differentiates its offering from the plethora of cloud-based CRM providers by focusing on increasing sales productivity while at the same time maintaining ease of use for end users (see our previous run down of competitors).
Zooming out a bit, Pipedrive says that the SaaS CRM market is expected to reach $4 billion in 2014, citing intelligence from Gartner.