Gross sales CRM Pipedrive takes majority funding from Vista Fairness Companions to succeed in unicorn standing

By | November 12, 2020

Pipedrive, the gross sales CRM instrument for small and medium-sized companies, is the most recent European firm to succeed in unicorn standing.

Based in Estonia and now headquartered in New York, the corporate has taken a majority funding from U.S. enterprise software program targeted non-public fairness agency Vista Fairness Companions. Because of this Vista has successfully acquired Pipedrive, within the sense that the PE agency now has a majority stake. A number of sources with data of the deal inform TechCrunch the transaction values Pipedrive at $1.5 billion {dollars}. The official announcement additionally makes point out of unicorns.

We’re additionally advised that Pipedrive’s current buyers Bessemer Enterprise Companions, Perception Companions, Atomico, DTCP, and Rembrandt Enterprise Companions, will proceed as minority buyers within the firm. Requested which shareholders exited, a spokesperson for Pipedrive says that this isn’t a secondary funding spherical, underlining that each one main buyers in addition to the corporate’s founders, Timo Rein and Urmas Purde, proceed invested in Pipedrive’s potential for additional progress within the subsequent few years.

Nonetheless, it’s clear from my very own sources that, as is the case with these sort of personal fairness buyouts, a lot of Pipedrive’s early shareholders could have exited or partially exited, together with workers/administration and early backers. That is both voluntary or obligatory as a part of a shareholder settlement “drag-along” clause.

Based in 2010, Pipedrive’s calling card has all the time been that it’s gross sales software program designed to serve in the beginning the wants of gross sales individuals not their managers — constructed by gross sales individuals, for gross sales individuals, in case you like — however has since matured right into a extra complete CRM platform play additionally spanning advertising and marketing.

The software program integrates with over 100 different apps utilized in enterprise, for instance Google Apps, Trello, Zapier, MailChimp, Yesware and PandaDoc. Pipedrive additionally employs what the corporate describes as synthetic intelligence and automation to assist gross sales groups handle leads and offers extra effectively, and observe buyer and prospect communications — all with the intention of serving to to enhance the underside line.

It hasn’t all the time been a simple promote, nevertheless. When the corporate raised its Sequence C spherical in mid-2018, Rein told TechCrunch’s Ingrid Lunden that there was some skepticism when the Pipedrive first launched that it could be attainable to make a dent in a panorama dominated by the likes of Salesforce and Microsoft.

“Once we entered the market in 2010, individuals requested us, ‘Why construct a product in an space the place Salesforce is already robust?’ However having been in gross sales for greater than a decade ourselves, we realized that it’s not simply the sheer variety of options you provide customers. The distinction is discovering the appropriate spot on the spectrum the place you’re getting what you want out of a product that you should utilize,” Rein stated. “We’ve confirmed that customers are migrating from Salesforce and others and are coming to Pipedrive. We undoubtedly have much less performance, however skilled salespeople know that efficiency is essentially about your persona.”

Quick ahead to immediately and Pipedrive claims 95,000 firms use its wares. Cue assertion from present CEO Raj Sabhlok: “Reaching ‘unicorn’ standing and partnering with Vista will allow us to speed up our mission to assist SMBs as they proceed to digitize their companies so as to develop. Our purpose is to efficiently ship on the daring imaginative and prescient that Pipedrive set earlier this 12 months – to supply our customers with highly effective instruments that cowl the entire buyer journey.”

Provides John Stalder, Managing Director at Vista Fairness Companions: “As an increasing number of small and medium-sized companies look to speed up their digital adoption to develop and thrive, Pipedrive has confirmed itself a useful companion with options that drive income progress to its prospects. We see an amazing alternative to work with the Pipedrive crew and their companions to proceed to develop the enterprise and serve small and medium-sized companies globally”.

In the meantime, Pipedrive’s unicorn standing provides to a good run for Atomico, the European enterprise capital agency based by Skype’s Niklas Zennström. The VC has seen three of its portfolio firms obtain unicorn standing this 12 months (being valued by buyers at 1 billion {dollars} or extra): Pipedrive, Lilium and MessageBird. One other Atomico funding, Klarna, additionally achieved so-called “decacorn” standing with a valuation of $10.6 billion.

“Pipedrive is now Europe and Estonia’s latest SaaS unicorn,” says Zennström. “Whereas financially rewarding for very long time Pipedrive founders, workers, and shareholders, it’s extra importantly a powerful re-affirmation — from one of many world’s main SaaS PE companies — of the mission began by Timo, Urmas, Ragnar, Martin Henk and Martin Tajur to make salespeople profitable world wide. We’re proud to have partnered with Pipedrive since we led their Sequence B in 2017, and imagine the corporate is now properly and actually on observe to develop into Europe’s subsequent world SaaS success story. That’s why we’ve doubled down as a part of this newest funding and are excited to proceed the Pipedrive journey with Vista on the helm. On a private word, I’m actually proud to see one other world chief emerge from Estonia with some ex-Skypers as key executives”.

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