For the third time since last February, Gong has raised a significant sum. In February, the company raised $ 40 million. In December, it made another $ 65 million, and today it was $ 200 million on a $ 2.2 billion valuation. That's a total of $ 305 million in less than 18 months.
Coatue led today's cash flow with the help of new investors Index Ventures, Salesforce Ventures and Thrive Capital and existing investors Battery Ventures, NextWorld Capital, Norwest Venture Partners, Sequoia Capital and Wing Venture Capital. According to the company, it has now raised a total of $ 334 million.
What attracts this kind of investor attention? When we spoke to Gong about his B-round, he had 300 customers. Today it has around 1300, representing substantial growth over that period of time. The company reports that revenue has increased 2.5 times this year alone.
Amit Bendov, CEO of Gong, says his company is trying to create a category they have dubbed "revenue information." As he explains, sales data today is stored in a CRM database consisting of descriptions of customer interactions as described by the vendor or CSR. Gong is trying to transform that process by capturing both sides of the interaction, then using artificial intelligence, he transcribes and analyzes those interactions.
Bendov says the pandemic and economic malaise have created a situation where there is a lot of liquidity in the market and investors have been looking for companies like his to invest some of it.
"There is a lot of liquidity in the market. There are very few investment opportunities. I think the investment community is waiting for a while to see how the market shakes [...] and they're betting on companies that could benefit from the new normal in the long run, and I think we're one of them, "Bendov told ProWellTech.
He says he wasn't looking for money, and in fact he's still trading the Series B investment, but when companies come knocking with open checkbooks and favorable terms, he wasn't going to turn them down. "There are schools for CEOs [of thought that] tell you to raise money when you can, not when you need it. It is not very diluted in this type of evaluation and it was a very simple process. [...] The whole deal was done in 14 days from the term sheet to the money in the bank, "he said.
Bendov said taking the money was "practically child's play". Indeed, he says that money gives them the freedom to operate and further legitimacy in the market. "It gives us the ability to buy companies, make strategic investments, accelerate plans and also, especially as we target large companies, it gives them the confidence that this company is here to stay ..." he said.
With around 350 employees today, it hopes to add 100 people by the end of the year. Bendov says diversity and inclusion are a "huge priority" for the company. Among the steps they have taken recently is opening a recruiting center in Atlanta to bring more diverse candidates into the company, working with a company called FlockJay to train and hire underrepresented groups in successful client roles and in Israel. , where the company's localized research and development center is located, helping members of the Arab community with computer science backgrounds learn interviewing skills. Some of these people will end up working for Gong, and others in other places.
Although the company has grown remarkably quickly and has shown great promise, Bendov is not yet thinking about an IPO. He says he wants to grow the company to at least a couple of hundred million dollars in sales and there are two or three years to go. He certainly has a lot of money to trade until then.
