Herzliya-based revenue intelligence company Gong, has announced that it has raised $65 million in a Series C round led by Sequoia Capital, with participation from existing investors Battery Ventures, which led the company's previous two rounds, Norwest Venture Partners, Shlomo Kramer, Wing Venture Capital, NextWorld Capital, and Cisco Investments. This brings the total amount raised by the company to $134 million. Industry sources told "Globes" that the round was at a company valuation of $750 million.
Gong says that it will use the new capital to continue to fulfill the strong market demand for its Revenue Intelligence Platform, and to invest in the its product, engineering, and go-to-market teams.
In 2019, Gong doubled its workforce, and the company intends to add 150 more jobs in 2020, including 100 jobs in AI engineering, data science, and other fields at its Israeli R&D center, which will be relocating from Herzliya to Ramat Gan in February.
Sequoia partner Carl Eschenbach has joined Gong’s board of directors. "Gong has unlocked a world of potential with their AI-based approach to increasing revenue teams’ effectiveness," Eschenbach said. "Its hypergrowth of customer acquisition and retention demonstrates the widespread need for a revenue intelligence platform to address the gaps of relying on traditional CRM for understanding customer reality. The company’s Revenue Intelligence Platform may well be the next big evolution after CRM."
Gong was founded four years ago by Amit Bendov, CEO, and Eilon Reshef, CTO. It reports 5 times revenue growth in 2018 and 3 times year-to-date growth in 2019. Talking to "Globes", Bendov said that among Gong's 800 customers are Facebook, General Electric, PayPal, and Nasdaq. "Most of the company's customers are in the US, but it recently added support in Spanish, Italian, German and French," he said, adding that by 2021 there will be support for Asiatic languages as well.
Asked about the possibility of an IPO, Bendov said, "At the current rate of growth, it's not science fiction. If the company wants a flotation in the next couple of years, it can do it."
Published by Globes, Israel business news - en.globes.co.il - on December 3, 2019
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