Coveo raises $227M at $1B+ valuation for AI-based enterprise search and personalization
search and personalization of services will continue to be an important area of investment, both to their products and services is more noticeable (and used) the help of the customer, and, Your own workers work, with the market estimated at a value of around 100 billion US dollars annually. Today, one of the great Start-UPS building technology in this area raised a large round of growth financing to further explore, the possibility. Coveo, a Canadian company and builds search and personalization services powered by artificial intelligence — from enterprise customers through a cloud-based, software-as-a-service, has closed a $227 million round, which CEO Louis Tetu says to me, values the company to “significantly over” 1 billion US dollars, Canadian or US dollars.”
The round is led by Omer Capital Private growth-Equity group, the investment arm of Canadian pension giant, the large, later-stage operations (the company was strengthened, the pace of investment in the last time), with the participation of always green coast capital, FSTQ and IQ Ventures. Evergreen has led the company’s last round of $100 million in April of 2018, and, overall, the company has raised more than $402 million from this round.
The $seems to be 1 billion+ valuation, a great leap in the context of Coveo funding history: in the last round, it was a post-money valuation of approximately $ 370 million, according to PitchBook data.
is part of the reason for this is because of the Coveo business trajectory, and part of it is due to the heat of the overall market.
Coveo round comes about two weeks after another company that builds enterprise search solutions, Algolia raised $110 million. The two beams at slightly different ends of the market, the Tetu tells me, a direct competition in terms of the target customers and even services. “Algolia is in another zip code,” he said. Good thing, too, if that is the case: Salesforce and this is one of Coveo’s largest partners and customers, it was also a strategic investor in Algolia round. Even if these two do not compete, there will be many others vying to the same end of the enterprise search and personalization continuum — they include Google, Microsoft, Elastic, IBM, Lucidworks, and many more. The size of the market, in turn, underscores the opportunity.
In terms of Coveo for the company, the company works with about 500 customers today, and says that SaaS subscription revenues rose by more than 55 percent year-over-year this year. Five hundred may sound like a small number, but it covers a lot of very large companies spanning the web-facing companies, trade organizations, service-facing businesses and enterprise solutions.
in addition to the Salesforce, Visa, Tableau (also Salesforce now includes!), Honeywell is a Fortune 50 company in the health sector (whose name is not always known), and what described the Tetu to me, as an Amazon competitor, will be $21 billion in sales annually, but is not called.
Coveo basic selling point is that the better findability and personalization, it helps its clients to avoid, as a lot of call center interactions (reducing operating costs), the improvement in sales (increase in conversions and reduce shopping cart abandonment), and help enterprises only, faster to work.
“We believe that Coveo is a leader to personalize the use of data and AI to scale,” said Mark Shulgan, Managing Director and Head of Equity to the growth of Omer, in a statement. “Coveo fits our investment thesis in more detail: A-plus leadership team, with expertise in enterprise SaaS a Fortune 1000 customer-base, the deep love the product, and a track record of high growth in a market worth over 100 billion dollars. This makes Coveo is a very coveted asset. We are glad that you are together on the scale of this business.”
in addition to the development of business, its own strength, the company is in the process of these funds for acquisitions. The Tetu notes that Coveo has still a lot of money in the bank from previous rounds.
“We are a real company with a real and positive economy,” he said. “This round is usually to invest dry powder, in a manner that is appropriate in the KI-space, and within commerce in particular.” To get the ball rolling on, this past July, Coveo Tooso, a specialist in the AI acquired-based digital commerce technology.
Released on Wed, 06 Nov 2019 09:09:49 +0000