Venture

Outreach Raises $50M, Reaching $1.33B Valuation

Sales engagement startup Outreach has landed $50 million in a new round of funding, the company announced late Tuesday.

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The new round was led by Sands Capital with “strong participation” from Salesforce Ventures, according to a statement from the company. Although it’s an up round in a down market, the investment by Salesforce was validation for the company, CEO Manny Medina said in an interview with Crunchbase News.

“It’s more than just us, it’s validating that sales (engagement) is a true category that’s addressing a pain in the market,” Medina said.

The sales engagement category is relatively new. According to Medina, it “separates the system of action from the system of record.”

Outreach manages customer interactions and uses machine learning to help guide sales reps when they’re making decisions. It offers things like calendaring features, a multichannel communications platform, and other ways for sales reps to better engage with customers. Companies like Snowflake, Convoy and Redis Labs use Outreach for sales, according to the startup’s website.

Operator Collective is also joining as a new investor in the round. The company’s other backers include Mayfield, Spark Capital, Lone Pine Capital, Maritech Capital Partners, Sapphire Ventures, and Trinity Ventures.

The new funding will be used to double down on investing in its products and their distribution. While Outreach is a West Coast company based in Seattle and many of its early customers were tech companies based in the west, there’s been growing demand from large companies, and from companies on the East Coast and Europe.

The startup will also be opening an office in New York and expanding its presence in Europe, where it already has an office in London.

Outreach was last valued at $1.1 billion after its Series E round in April 2019. The new funding brings its valuation to $1.33 billion. The company has a total of $289 million in funding.

Illustration Credit: Li-Anne Dias

Disclosure: Salesforce Ventures and Mayfield, investors in Outreach, are also investors in Crunchbase, the parent company of Crunchbase News. Crunchbase’s investors are listed as part of its Crunchbase profile. For more about Crunchbase News’ editorial policies on disclosure, see the News team’s About page.

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