SaaSWorks Raises $5M to Help SaaS Firms Scale Subscription Operations
Seed funding round led by Conversion Venture Capital
SaaSWorks has raised $5 million in seed funding to continue its work as a revenue operations and customer success solution to support SaaS businesses. The funding round was led by Conversion Venture Capital and CEOs, CFOs and other executives from prominent SaaS companies. SaaSWorks will use the investment to attract talent in the greater Boston area to help the company grow and support SaaS businesses as they scale their subscription operations.
SaaSWorks was founded in May 2019 by Jim O’Neill and Vipul Shah. O’Neill was a founding member of HubSpot, where he helped the company grow to 1,500 employees and more than 25,000 customers. Shah is a software developer and was co-founder of Pyramid Digital Solutions, an enterprise software company, sold to SunGard Data Systems. Shah then spent 10 years investing in high-growth companies while working at firms including Goldman Sachs Private Equity. Together, O’Neill and Shah have more than 20 years of experience as software entrepreneurs, operators and investors.
“It’s been humbling to see the type of support we’ve had from our initial customers, team and investors,” said Shah in a February 6 news release. “Based on what we learned from operating, investing in, and advising numerous scaling SaaS companies over the past several years, Jim and I identified a common theme around the need for operational solutions to deliver customer outcomes.”
On its website, SaaSWorks says it is “a leg up, not another login.” It also describes itself as a no-app solution for scaling subscription businesses including improving “customer health, revenue operations and customer service outcomes,” while helping SaaS companies engage customers, improve net revenue retention and achieve measurable lifetime value.
“What is unique about the SaaSWorks approach is that it’s truly a service-led, product-enabled company that delivers results for our customers.” O’Neill says. “We are excited to be building the next-generation team of data-driven SaaS experts and software developers, leveraging the most contemporary technology and tools.”
Conversion Venture Capital founding partner Shakeel Rangrez commented on the firm’s investment.
“Our long-term capital commitment reflects our confidence in Jim and Vipul’s ability to create a platform that adds real value that’s long-lasting,” said Rangrez. “Jim and Vipul have a tremendous record of success at multiple platforms, and as a result, the approach and perspective they’re going to take regarding this investment aligns well with our values.”
It looks like SaaSWorks is starting small, taking on small companies that it feels are a good fit. Interested companies can reach out to SaaSWorks for more information on the company’s website. They are currently accepting applicants for the first quarter of 2020. In their notice of interest, SaaSWorks asks companies who they currently use for a CRM (HubSpot, Salesforce or other), their primary billing or subscription management system (Stripe, Zuora or other), information about their customer success team, if applicable, and the greatest challenge the applying company has faced in trying to scale their business.
There are some great customer success solutions available for subscription companies of all kinds. Surely, there is room for another one, especially from a pair of talented entrepreneurs who know the technology and marketplace so well. This is a great opportunity for them to build on their success and for SaaS companies to benefit from their passion for solid solutions. This will be a company to watch in 2020.