QuotaPath, which has developed a commission tracking solution for sales and revenue teams, has raised $ 21.3 million in a Series A funding round led by Insight Partners.
Existing backers ATX Ventures, Integr8d Capital, Stage 2 Capital, and HubSpot Ventures also participated in the funding, bringing the startup’s total funding to $ 26.3 million since its inception in 2018.
The funding comes amid a year of growth for the startup, which has two locations in Austin and Philadelphia. Specifically, QuotaPath has experienced 600% revenue growth since January 2021. It has more than 5,000 users on the platform, 40% of which are paid. Clients include Guru, Contractbook, Mailgun, Cloud Academy, SaaSOptics, and OSG.
AJ Bruno, Cole Evetts, and Eric Heydenberk founded QuotaPath with the mission of helping “companies build and scale motivated, high-performing growth teams.” The startup said it gives teams a way to streamline the commission process and avoid inaccurate quotes, incorrect payments and “dissatisfied sales reps due to poor sales commission planning, reporting and management.”
Through real-time CRM integrations with Salesforce, HubSpot and Close.com, sales reps can learn more about earnings and achieving quotas, the company said.
Bruno is no stranger to startups, having co-founded Austin-based PR analytics firm TrendKite, which was sold to rival Cision in 2019 for $ 225 million. It was there that Bruno led the sales and administration teams, and about “30 people” were having some problems with compensation and commission. It took a month and involving several people to fix the situation. After trying to incorporate a sales and commission tool for eight months and “failing miserably,” Bruno saw an opportunity.
“Reps needed to understand what their compensation plans were and they didn’t have real-time visibility into earnings and their compensation forecast,” he said. So he and Evetts (who was the director of revenue and sales operations at TrendKite) finally set out to create a workflow to solve the problem. Heydenberk joined as a technical co-founder and the company raised about $ 5 million in pre-seed funding and seed capital.
“What we finally said was going to be our north star is that we want the sales team and sales reps to easily understand compensation plans, and to do that, we had to build an onboarding setup where it didn’t seem like a spreadsheet that was in Excel because most sales reps don’t understand Excel, “recalled Bruno. The team then spent a year working with end users and sales reps to build the platform’s back-end infrastructure so that sales teams could “interpret what was really going on and all the mechanisms behind it.” .
The requirements were that it be quick to onboard (less than a week) and easily adjustable so that customers could make changes in real time themselves and not have to wait for a company to make them.
“With QuotaPath, a sales team can forecast more profit and create more goals around what they want to do,” said Bruno, “and connect those goals to the bottom line of the company.”
The startup launched its paid platform in June 2020 and works with companies with as few as three representatives to a few hundred ranging from SaaS to commercial stores and low-tech businesses like wedding venues and funeral homes.
“With 10.5 million vendors in the United States, this is a very large market,” said Bruno. In fact, there are other startups taking up the space. At the beginning of this year, CaptivateIQ, which has developed a no-code platform to help companies design custom sales commission plans, announced that it had raised $ 46 million in a Series B round led by Accel.
QuotaPath currently has 28 employees and plans to use its new capital to double its workforce before the end of the year. He also plans to work on expanding partnerships and expanding the product offering to finance and human resources functions.
Rachel Geller, CEO of Insight Partners, will serve on the company’s board of directors as part of the funding. He said a priority for Insight Onsite, the company’s ScaleUp engine, is to help its portfolio “build scalable, high-performance sales and marketing functions.”
“Our sales experts are in the trenches understanding the challenges sales teams face and tracking sales commissions is the most important thing,” he said. “Organizations need a formula-free solution to their current problem of spreadsheets and legacy solutions, and QuotaPath presents a clear alternative.”
In particular, Geller said Insight was impressed by QuotaPath’s “ease of use and fast time to implementation” compared to other solutions.
“QuotaPath clients can be up and running in days,” he said.