Why we invested in Funnel.io (and how the way you market is about to change forever)

I’m excited to announce that we have led a $10M investment in Funnel. Funnel has built a marketing automation platform that helps companies gather their marketing data from every source they use enabling real time, intelligent analysis across their marketing spend. The company was built by a small team of tech veterans in Stockholm and, after around two years of activity is already processing over $1Bn of marketing transaction data on an annual basis.

A big part of why we invest in any company is driven by our thinking on key technology trends and Funnel is an excellent example of this.

Design-led and subscription Enterprise Software

These trends have been a huge boon to the industry, customers and, of course, investors. Simplistically they have replaced the monolithic systems of old (often built on legacy Oracle, SAP, IBM or Microsoft platforms) where a single backbone was hosted on-premise at a customer’s site and painstakingly customized into a multitude of different systems (CRM, ERP, Marketing, HR, Financial and so on….) by internal IT departments and large services firms. Instead, the modern enterprise is typified by a family of apps, each doing something very specific, each hosted off-site, in the cloud and each standardized and easy to use and each often from different vendors (think a combination of Gmail, Workday, Salesforce and more).

There are huge advantages in this new architecture. The new applications are cheaper and more off-the-shelf than their historic counterparts. They are easier to use and require less support. The specialisation of each software company in each area means also that each application is just very good at what it does. Workday, for example, spends all day every day thinking about how to ensure your human resources are organised, run, reported on and supported — unsurprisingly they’ve gotten very, very good at it.

The challenge of silos and Systems of Intelligence

Enter Funnel

And intelligence leads to action — knowing what your business is doing, second by second rather than month by month means new strategies can be suggested and tested, analysed and launched rapidly and even automatically, improving the company’s ability to compete both against competitors but also its historic self. Funnel literally enables programmatic self-improvement in marketing — a staggeringly powerful opportunity for any business.

Backing a Team

Most of all what Funnel have really done is build a product that people love. We first heard about the company through our friends at Industrifonden and then really got excited when we kept finding people we knew — many in our own portfolio — were avid, hooked users of the product, keen to tell us how much they used it and how efficient it made their processes. Once we realised just how excited people were about this, we simply had to find a way to work with the team, leading to this eventual investment in the company.

As my partner James Wise recently noted, it all comes down to three questions. Why that market? Why now? Why them. We think Funnel more than answers these and we look forward to working with them on the journey ahead.

Balderton

Investing Early in Europe’s Leading Entrepreneurs

Suranga Chandratillake

Written by

VC @balderton and Chief Strategy @blinkx_video. Previously: Founder/CEO @blinkx_video and US CTO @HPAutonomy. Yet more previously: CompSci @Cambridge_Uni

Balderton

Balderton

Investing Early in Europe’s Leading Entrepreneurs

Suranga Chandratillake

Written by

VC @balderton and Chief Strategy @blinkx_video. Previously: Founder/CEO @blinkx_video and US CTO @HPAutonomy. Yet more previously: CompSci @Cambridge_Uni

Balderton

Balderton

Investing Early in Europe’s Leading Entrepreneurs

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