Pipedrive has closed $3.4 million in seed funding. The lead investors were Rembrandt Venture Partners and Storm Ventures. Also, TMT Investments, Taavet Hinrikus of Transferwise, Ott Kaukver of Twilio, Rain Rannu co-founder of Fortumo and Tytus Michalski, managing director of Fresco Capital Advisors, also participated in the round. Based in California and Estonia, Pipedrive is a provider of cloud-based sales software.
Pipedrive (http://www.pipedrive.com), maker of cloud based sales software, has announced an extended seed round co-led by Rembrandt Venture Partners and Storm Ventures, with participation from TMT Investments and a group of angel investors, including Taavet Hinrikus of Transferwise. This round brings the total raised to date to $3.4M. Also participating in this round were Ott Kaukver (VP Engineering of Twilio), Rain Rannu (co-founder of Fortumo) and Tytus Michalski (Managing Director of Fresco Capital Advisors).
The company plans to use the funds to speed up carrying out its vision of creating the world’s best sales software. Founded in 2010, Pipedrive grew out of frustration with the different sales software co-founders had been using. According to CEO Timo Rein, their team, like most sales teams, lost unnecessarily many hours to data entry and unclear work flows when using CRM software. “It was as if the productivity of sales people hadn’t been considered at all”, Rein adds. This is something the company wants to change.
As immediate next steps after closing the round Pipedrive plans to grow its product development team in and the Palo Alto-based marketing/business development office. It currently advertises openings for Director or Marketing, Mobile Developers, UI Designers and other roles on its site https://www.pipedrive.com/en/about. Today it employs 21 people in offices in California and Estonia.
“We’re incredible pleased to be co-leading this investment in Pipedrive”, said Jason M. Lemkin, Managing Director at Storm Ventures and Co-Founder and past CEO of EchoSign / Adobe. “One of the core business processes every organization needs is managing leads and prospects until they close. Pipedrive has proven that the right sales tools can make a big impact on businesses of all phases of growth”.
Pipedrive doesn’t disclose revenue figures but CEO Timo Rein claims that the company has been cash-flow positive on several occasions and that user growth is accelerating. It’s paying customer base has tripled in the past 12 months and the software is used by more than 30000 paying users in over 100 countries, with the US, Brazil, the UK, Canada and Australia being the biggest markets.
Pipedrive is mostly used by sales teams but the company has found that its kanban-like work flow is also used in other areas where “closing” the maximum number of conversations is important. For example, learning platform Mixergy uses Pipedrive to schedule interviewees, startups such as iDoneThis have used Pipedrive for fundraising and numerous companies use Pipedrive for managing the hiring pipeline. (See http://blog.pipedrive.com/category/users/)