Leadspace, a customer data platform developer, closed a $46 million growth round and named Alex Yoder as its new chief executive officer.
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The new round was led by JVP, with the firm’s founder and Executive Chairman Erel Margalit becoming chairman of Leadspace’s board. Margalit previously led investments in companies such as CyberArk Software, QLIK Technologies and Cogent Communications.
“We typically invest in early-stage companies, but we only double down in category leaders and companies that can reach $100 million in ARR,” Margalit said.
San Francisco-based Leadspace helps companies such as Salesforce1, American Express, Zoom and Microsoft use data and artificial intelligence technologies to accurately and personally engage to help push sales and marketing campaigns.
The company, with fewer than 100 employees, has now raised about $100 million in funding.
Management change
Yoder replaces Doug Bewsher as the company’s CEO. Margalit said Yoder — who has led companies like WebTrends, Ebiquity and Trueffect — was brought on to help take the company to $100 million and beyond in revenue.
That growth is something that is possible, Yoder said. The company expects to grow 70 percent this year, doubling the market’s growth, he said. Part of that increase is due to companies looking to engage and find necessary contacts at companies through data after the COVID-19 pandemic forced many to have limited personal contacts.
“The dynamics of the world have certainly changed,” Yoder said.
A changing market
Leadspace’s competition varies in a space that has seen some recent consolidation. In 2019, Dun & Bradstreet bought competitor Lattice Engines. As a result, Leadspace now competes with large data vendors such as Dun & Bradstreet, as well as with account-based marketing tools such as Marketo and 6sense.
Yoder said he believes Leadspace differentiates itself from many in the sector due to its ability to analyze unstructured social and behavioral data, which can better help sales and marketing efforts.
Margalit added he sees the sector and Leadspace as the next step of customer relationship management, going from a static database to a platform that gathers information and is constantly updating.
“We believe this will be the biggest space after CRM,” he said.
Illustration: Li-Anne Dias.
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