Total amount raised
$34.5 Millions
Latest funding date
03/01/2021
Location
ChurnZero has successfully raised funding through multiple rounds, with its most recent being a Series B round on March 4, 2021. The company is backed by six investors, including JMI Equity and Baird Capital.
Keep reading to explore the intricacies of ChurnZero's fundraising journey and the investors backing this innovative platform.
What Is ChurnZero?
ChurnZero, founded on June 1, 2015, is a software development company based in Washington, D.C. The company specializes in providing AI-powered customer success software designed to help businesses reduce churn, increase customer retention, and grow revenue.
ChurnZero's platform offers features such as customer health scoring, automated engagement, and detailed customer insights. These tools enable businesses to understand customer usage, assess customer health, and personalize customer experiences through various touchpoints.
The company was founded by Mark Heys and You Mon Tsang and currently employs between 101-250 people.
How Much Funding Has ChurnZero Raised?
- Seed Round
- Amount Raised: $2.5M
- Date: September 2017
- Lead Investors: Grotech Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and establish a market presence.
- Series A
- Amount Raised: $7M
- Date: April 2019
- Lead Investors: Baird Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series B
- Amount Raised: $25M
- Date: March 2021
- Lead Investors: JMI Equity
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team, enhance product development, and invest in community-building efforts around customer success.
Total Amount Raised: $34.5M. Current Valuation: Not publicly disclosed.
Key Investors
- JMI Equity
- Details: JMI Equity is a growth equity firm focused on investing in leading software companies. Founded in 1992, JMI has invested in over 155 businesses and raised more than $6 billion in committed capital.
- Investment Focus Areas: Software companies, customer success, growth software.
- Notable Investments: Over 155 businesses in its target markets.
- Baird Capital
- Details: Baird Capital makes venture capital, growth equity, and private equity investments in strategically targeted sectors globally. The firm has invested in more than 320 companies and provides operational support through teams in the United States, Europe, and Asia.
- Investment Focus Areas: Technology, services, growth-stage companies.
- Notable Investments: More than 320 companies globally.
- Grotech Ventures
- Details: Founded in 1984, Grotech Ventures focuses on early-stage investments across the IT landscape. The firm has more than $1.0 billion in committed capital and supports early-stage companies with investments starting at $500,000.
- Investment Focus Areas: Early-stage technology companies, IT landscape, innovative startups.
- Notable Investments: Early-stage companies with investments starting at $500,000.
What's Next for ChurnZero?
ChurnZero stands at the cusp of significant growth opportunities, driven by the increasing importance of customer success in subscription-based businesses. With the recent $25 million Series B funding, the company plans to expand its team and enhance its product offerings, positioning itself to capture a larger market share in the customer success software industry.
Future fundraising opportunities seem promising as the company continues to attract interest from prominent investors like JMI Equity, Baird Capital, and Grotech Ventures. This financial backing will likely fuel further product development and market expansion, ensuring ChurnZero remains competitive in a rapidly evolving industry.
However, ChurnZero may face challenges such as intense competition from other customer success platforms and the need to continuously innovate to meet evolving customer needs. Managing rapid growth and scaling operations effectively will be crucial for sustaining its momentum and achieving long-term success.
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