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PALO ALTO, CA--(Marketwired - Feb 5, 2014) - Totango, the leader in customer success and user engagement management, today announced $15.5 million in Series B financing led by new investors from the Canvas Venture Fund and InterWest Partners, with participation from returning investors Pitango Venture Capital and Gemini Israel Ventures. Gary Little, managing director at the Canvas Venture Fund, and Doug Pepper, general partner at InterWest Partners, will join Totango's Board.
Totango addresses a growing and urgent need for businesses to better understand and engage with customers by offering a data-driven approach to improving customer acquisition, reducing churn, and ultimately driving customer success and lifetime value. The company does this by monitoring customer behavior and usage in applications and then guiding companies to take the right action with each customer to result in an engaged and thriving user base.
Today, more and more companies are moving to a subscription or recurring revenue model, forcing a greater focus on customer success and retention. At the same time, virtually every industry -- from enterprise applications to information services to healthcare and education -- is being transformed by cloud software. Totango gives companies across the spectrum unprecedented visibility into customer actions and opens up new opportunities to engage with customers to maximize revenue.
With over 100 paying customers, including companies such as Zendesk, Zoho, Jive, Optimizely, SendGrid, OpenDNS, and Keynote Systems, Totango is the leader in its market. The company grew by over 400 percent last year and is gearing up for significant expansion.
"Companies today are in the business of value creation, not value extraction. We help companies understand exactly how they're creating value so it's no longer guesswork," said Guy Nirpaz, CEO and co-founder of Totango. "We have a big vision to change the way companies manage and expand both their customer relationships and ability to maximize revenue in an era where customer engagement and interactions are rapidly moving to web and mobile apps."
Gary Little, managing director of the Canvas Venture Fund, whose partners serve on the boards of industry leaders such as Evernote, Lending Club, Siri and MuleSoft, commented, "While the Internet has enabled companies unprecedented reach to serve millions of customers, the unspoken truth is that companies are flying blind in understanding the value they're delivering to customers -- which specific trial users are ready to buy, which customers are likely to churn, and which accounts are prime for expansion. Totango's customer engagement solution provides this visibility to intelligently and automatically engage with each individual customer to ensure customer success."
Doug Pepper, general partner at InterWest Partners added, "As early investors in SaaS companies such as Marketo, Optimizely, and Spredfast, we look for startups that are category creators and disruptors. We are very impressed with the innovation Totango is driving. Not only are they blazing a trail with their customer engagement monitoring technology, but they are also fundamentally changing how companies approach customer success through use of behavioral data. We believe the demand for Totango's solution is going to explode."
To learn more about how Totango can improve your rate of customer success and value, please visit www.totango.com.
Totango is the leader in customer success and user engagement for cloud apps. The company helps SaaS vendors and online subscription services take a data-driven approach to reducing churn and driving customer success, product adoption, and trial conversion. Totango monitors customer behavior and usage in applications -- along with critical relationship data from CRM, billing, and other systems -- to generate insights on customer health and engagement. The company's platform combines big data analytics with powerful segmentation and predictive tools to guide vendors in taking the right actions with each customer to create an active, engaged user base.
About the Canvas Venture Fund
The Canvas Venture Fund, managed by Morgenthaler Technology Investment Company, is focused exclusively on early-stage venture investments. It invests broadly in software and services, with specialties in SaaS, health IT, financial services, big data/analytics and machine learning. The fund was formed by the managing directors who led or serve on the boards of Evernote, Lending Club, Siri, MuleSoft, NexTag, Practice Fusion, Doximity, NuoDB and Nuance. Other portfolio companies and an intro video can be found at www.canvas.vc.
About InterWest Partners
For more than 30 years, InterWest has partnered with exceptional entrepreneurs to build winning technology and life sciences companies. The firm's investing team has raised $2.8B, completed more than 70 IPOs, and participated in nearly 60 upside acquisitions. As the firm invests InterWest X, a $650M fund, the InterWest team continues to believe that providing capital is just the beginning of a long-term collaboration with entrepreneurs to turn their vision into a thriving company.