Funnel announced today it has closed a $47 million Series B round led by Eight Roads Ventures and F-Prime Capital, with participation from existing investors Balderton Capital, Oxx, Zobito and Industrifonden as well as Kreos Capital.
Funnel will use the funds to continue to fulfill the strong market demand for its platform that empowers marketers by automatically importing marketing data and making it Business-Ready for reporting and analysis. In particular the company will accelerate its plan in the US where it is seeing strong demand from enterprises and invest heavily into its technical teams to further the vision of creating a single source of truth of marketing, sales and other commerce data.
In 2019 digital marketing surpassed offline marketing for the first time. Companies are shifting their marketing budgets online because of the performance promise of digital marketing, but delivering on that promise is hard. It requires a strong reporting infrastructure, which is difficult to achieve because of the overwhelming number of ever-changing marketing platforms and the need to harmonize and integrate the data from each platform. Just in the last two years, the number of data sources used by marketing organizations has increased by 50% and there are no signs of this slowing down.
Business users are traditionally dependent on separate technical teams for setup and support of a measurement infrastructure and existing solutions tend to either be inflexible and break when marketing requirements change, or monolithic and not well suited to plug into the existing data and reporting infrastructure of the organization.
Funnel solves this problem by automatically importing all marketing data, making it Business-Ready, and exporting it to the existing data warehouse, or reporting tools already used by the organization such as Tableau or Google Data Studio. In contrast to raw data, Business-Ready data is data that has been cleaned, normalized and integrated and can instantly and correctly be used for reporting and analysis. The lack of automated access to Business-Ready data and dependency on technical teams for it, is one of the largest sources of frustration for marketers. With Funnel, users get instant access to their prepared data with no downtime when requirements change. It also allows technical teams to focus on high-value activities rather than the tedious and time-consuming tasks of collecting, cleaning, normalizing and integrating data. The result is empowered, accountable marketing teams that can finally deliver on the performance promise of digital marketing.
Over 800 forward-thinking digital marketing organizations have made this shift with Funnel, including Klarna, trivago, Discovery, Appsflyer, Skyscanner, SAS - Scandinavian Airlines, as well as leading media agencies like Havas Media, Ogilvy and DAC Group just to mention a few.
Alston Zecha from Eight Roads Ventures has joined the Funnel Board of Directors, and commented: “Funnel solves a critical pain-point for a growing number of marketers, from midsize companies all the way to very large enterprises. There was no stronger validation for us than the fact that several of our portfolio companies are already amongst its many delighted customers. We have been really impressed not only by Funnel’s world-class technology, roster of clients and rapid growth, but also by the inclusive, transparent and customer-centric culture of this great team."
Fredrik Skantze, CEO and co-founder, says: “Per Made and I founded Funnel after many years of being frustrated by ineffective reporting getting in the way of unlocking the power and promise of digital marketing. We soon discovered that we were not alone in our frustrations, with explosive inbound demand that has seen the business double or more every year. Today we have over 800 customers in 43 countries, relying on us to make budget decisions on over $20 billion of annual advertising spend. We are really pleased to have Eight Roads Ventures and F-Prime Capital onboard. With teams in the US, UK, China, India, Singapore and Japan they are truly a global platform that we can lean on for support in our aspiration to keep building a category-defining company that empowers organizations with Business-Ready data for reporting and analysis.”
2019 was a year of strength for Funnel with a large number of enterprise companies coming onboard and annualized recurring revenue more than doubling. During the year the team grew from 73 to 140 and the company signed new office space for a total of 400 people across Stockholm and Boston, setting up a platform for continued rapid expansion.