Growth investment will fuel expansion of Konnecto's team and enable continued investment in innovation to capitalize on immense demand for its solution from enterprises globally
TEL AVIV, Israel and NEW YORK, June 28, 2022 /PRNewswire/ -- Konnecto, the prescriptive marketing platform pioneering the category of path-to-purchase optimization, today announced that it has secured $21M in Series A financing led by PeakSpan Capital. Existing investors TPY Capital, Mindset Ventures, Differential Ventures, SeedIL Ventures, and Magna Capital Partners also participated in the oversubscribed round, bringing the total capital raised by Konnecto to $29M to date.
Konnecto has established a new category in marketing technology, prescribing highly targeted recommendations to increase online sales and optimize marketing ROI for brands including MassMutual, Coca Cola, Mercedes Benz, eToro and many others. The company has tripled its client base in the past six months, and will leverage the funding to expand its data science and engineering teams, as well as invest in expansion of go-to-market infrastructure and headcount to capitalize on the overwhelming demand it is seeing for its platform.
In recent years, it has become increasingly difficult for marketers to determine which touchpoints influence consumers' purchase decisions along their path-to-purchase. This challenge has escalated significantly with the ever-changing landscape of data privacy and the sunset of third-party cookies. Organizations are looking for a source of truth on what will drive impact and improve results in the online purchase journey for them against their competitors.
Struggling to solve this challenge, marketing teams spend many hours logging into a variety of disparate platforms in the marketing tech stack, analyzing data points that don't provide them with the next best action that will improve conversions. Marketing leaders do not need more data or SaaS tools; instead, they are demanding insight into what is working, what touchpoints are influential in improving ultimate conversion, and clear prescriptive recommendations on what to do today to drive better results.
Konnecto is the first platform that identifies the most impactful vulnerabilities in the full path to purchase that led consumers to convert with competitors. This is done by reverse-engineering consumer journeys that ended up converting with the brand, its competitors or on a marketplace. Konnecto's platform prescribes highly targeted and actionable recommendations across the entire digital marketing pie. This helps growth and marketing teams quickly focus on informed decisions and execution without the need for integrations across a brand's broader tech stack. The platform was built without reliance on cookies and with complete compliance with global privacy regulations.
"Our investment in Konnecto is part of a long-standing thesis we've been developing centered around partnering with businesses that have demonstrated an ability to drive specific, tangible outcomes and significant performance improvement for marketers amidst an incredibly noisy vendor landscape and increasingly uncertain environment related to data privacy and global compliance mandates," said Matt Melymuka, co-founder & managing partner, PeakSpan Capital. "Macroeconomic pressure is forcing companies to be more efficient as budgets are slashed across the board, while still satisfying an expectation to execute at the highest level and generate attractive and continuously improving performance. That is obviously a tall order. The value that Konnecto's platform has delivered to large, demanding organizations across the globe is astounding. The company is paving the way in supporting a new approach to value creation for marketing organizations today, shifting focus from reactive monitoring to prescriptive action suggestion. The rapid growth and overall performance Konnecto has demonstrated to date is among the best we've ever seen and we're privileged to partner with the team in this next phase of development and expansion."
"Management teams, boards, and VCs want their companies to stop spending marketing dollars wastefully, while market uncertainty is causing businesses of all sizes to need rapid results while spending less," said Erez Nahom, Konnecto CEO and co-founder. "Konnecto uniquely addresses rapidly-changing market conditions and the demand they place on enterprises by providing both insight on the touchpoints that move the needle, but also what actions to take to drive conversion - maximizing revenue in a quickly changing market. We look forward to our latest funding helping to scale our product for organizations that look to stop the customer acquisition guessing game and improve their marketing efficiency significantly."
"We'd led Konnecto's Seed round, and in the couple of years since we'd seen the company succeed in pretty much every single parameter we'd hoped to see," said Guy Yamen, co-founder and general partner, TPY Capital. "The team had been showing demonstrable results in building a product addressing real-life marketing problems; growing a loyal base of world-class brands; and, not less importantly, do so through a culture of constantly pursuing in-depth market understanding, joy in problem solving, and capital efficiency even in years when this was considered counterintuitive. We're excited and eager to see the expansion Konnecto will see with the recent round of funding."
For more information on Konnecto's prescriptive marketing platform, please visit www.konnecto.com.
Konnecto offers the world's first prescriptive marketing platform that provides consumer brands with daily recommendations on how to increase their online sales by reverse engineering their competitors' journeys and identifying path-to-purchase vulnerabilities. Konnecto works with companies across a variety of industries, including Coca-Cola, MyHeritage, AON, Haven Life, and many others. For more information, visit www.konnecto.com.
PeakSpan Capital is a growth equity firm based in New York City and Silicon Valley, with a focused mission to be the partner of choice for growth stage entrepreneurial teams who are building amazing software targeted at business buyers of all sizes. PeakSpan combines deep domain expertise within a select number of themes with a homegrown, proprietary technology platform providing visibility into company and market performance, to help entrepreneurs drive resilient, risk-adjusted value creation. To learn more about PeakSpan Capital and its portfolio, please visit: http://www.peakspancapital.com.
TPY Capital is a Tel Aviv based early stage VC, investing in some of Israel's most talented entrepreneurs. We are active investors who typically lead rounds in the areas we invest in, which include data and analytics, digitization and human augmentation, fintech and frontier tech such as quantum computing. To learn more visit: www.tpycapital.com
Market Street Group for Konnecto