FOSTER CITY, Calif - (December 14, 2016) The round was led by Providence Strategic Growth Capital Partners L.L.C.(“PSG”), an affiliate of Providence Equity Partners L.L.C., with participation from Toba Capital, Wellington Financial LP and Recruit Holdings Co.,Ltd., as well as additional funding from existing investor Kennet Partners and founder Ben Brigham. Conversica’s board of directors has been expanded to include PSG ManagingDirector GopiVaddi and Toba Capital Partner Wilder Ramsey.
“The Conversica team has developeda unique and powerful way to solve a ubiquitous business problem,enablingsales and marketing organizations to automaticallyengage, qualify and follow-up with their leads to more effectivelyturn them into customers,”said Alex Terry, CEO of Conversica. “Sales and marketing professionals at over one thousand organizations have already achieved tremendous productivity enhancements by deploying our service. We are confident that our unique AI technology will be deployed across a broad spectrum of customer engagement functions to automate and improve many important business conversations.”
Conversica will use the new funding to expand marketing and sales efforts, support ongoing product development and finance the continued growth of the company. The company has already achieved significant commercial success withits flagship AI Sales Assistant, including:
- Empowering over16,000 users at over 1,000 companies across more than a dozen industries includingtechnology, automotive, higher education, finance, insurance, real estateand hospitality;
- Sending and receiving over 180 million emails and SMS messages through its Conversational AI platform to buildone of the largest AI training data sets in sales and marketing communications; and
- Achieving a 35% lead response rate, over 8X higher than typical marketing emails, via fully autonomous AI-powered conversations.
Conversica’scustomers, including Fortune 500 companies such as IBM and Epson,high-growth companies such as Talend and Cake (a Sysco company) and modern small businesses such as SelectQuote and Coolfront, leverage the Conversica® AI service to engage and qualify their sales prospects using natural, two-way human conversations, enabling their sales teams to spend significantly more time closing business.Due to the increased flow of qualified sales prospects sourced by the AI assistant, many of Conversica’s customers have reported the need to hire additional salespeople tokeep up with the demand.
“Conversica’s AI technology has helped IBM be smarter about engaging our prospective customers and maximizing their value as they move through our sales funnel,” commented Kevin Pollack, head of IBM’s Global Email Marketing Practice. “Not only have we freed up resources within the marketing team and gained immediate value in the form of qualified sales opportunities, we are also seeing how AI can help transform our entire business moving forward.”
In addition to its flagship Sales Assistant, Conversica has used its conversational AI platform to develop AI-powered assistants that automate important business conversations, including customer lifecycle management in the automotive industry, customer success management in the software industry and loan processing in the financial services industry.
“Conversica’s powerful language processing, analytical and machine learning capabilities and product vision are expected to continue to drive the company into conversational areas that have yet to be touched by AI,” said GopiVaddi of PSG. “The company has gained remarkable traction with customers, demonstrated by its large and multi-vertical customer base, substantial recurring revenue and number of AI interactions.Clearly customers are not only seeing results deployingConversica’s solutions but are allocating real capital to take advantage of its benefits. We are excited to be a part of Conversica’s next phase of growth.”
“Applying data science techniques to machine-human interactions is an area where we are seeing incredible growth and innovation, and we’ve spent considerable timelooking for the right company in which to invest,” said Toba Capital founderVinny Smith. “Conversica has a proven track record of success and client satisfaction in addition toa real vision for the broader application of this technology. Their desire to continue to push the envelope and innovate is what sets them apart, and why we are thrilled to be able to partner with Alexand his team.”
“The use of Intelligent Assistants for sales, marketing and customer support is exploding, and Conversica is a leader in these early days of Conversational Commerce,” commented Dan Miller, Lead Analyst and Founder at Opus Research. “Based on its powerful AI technology and rich data set of millions ofinteractions on behalf of its clients, the company is well positioned to capture a big share of this exploding market.”