Outfunnel, a startup that has built software to help companies “bridge the gap between marketing and sales functions,” has quietly raised €1.1 million in funding.
The pre-seed round was led by Paua Ventures and byFounders, with participation from Lemonade Stand, Omnisend and various angel investors. The latter includes Bolt co-founders Markus and Martin Villig, Matterport CMO Robin Daniels, Pipedrive co-founder Ragnar Sass and long-time Skype exec Sten Tamkivi, amongst others.
Formed in 2017, Outfunnel’s founders are marketing veteran Andrus Purde (previously of Skype and Pipedrive), Andris Reinman (creator of open-source email projects like Nodemailer and WildDuck) and Markus Leming. The startup has developed what it dubs a “revenue marketing automation tool” that is designed to enable sales and marketing functions to work together to drive revenue.
“SMBs still struggle to unite sales and marketing data,” Purde tells me. “Money and time is wasted setting up workflows, connecting databases with digital duct tape and manually pulling reports… This [also] means that everyone misses opportunities, as well as revenue goals.”
Furthermore, salespeople have no context for sales conversations and don’t know which leads are ready to buy, and leadership doesn’t easily have “big picture” visibility into the effectiveness of campaigns. “Last but not least, all of us receive lots of ‘spam’ instead of relevant messages,” he says.
To solve this, Outfunnel’s secret sauce sees it integrate deeply with CRMs (currently Pipedrive, Copper and HubSpot CRM, with more to follow) coupled with various features such as automated emails in sync with CRM data, reporting and precise targeting. The startup has already won over more than 400 paying customers, with North America being its biggest market, followed by larger European countries and Australia.
“Our typical customer is a small to medium-sized business that needs both sales and marketing and where sales cycles are longer, not transactional,” adds Purde. “That’s roughly 25% of all SMBs according to our estimations e.g. businesses selling professional services, consulting, real estate, healthcare… That said, we have some better-known scale-ups as customers, too, such as Bolt.”