January 11, 2016

BostInno

Here is How Evergage Raised $10M from Arrowroot

By Dylan Martin

Somerville marketing tech startup Evergage announced Tuesday that it has raised a $10 million Series B round led by Arrowroot Capital. The startup—which provides real-time personalization services to companies like Rue La LaZumiez and LendingTree—said it will use the new funds to grow its staff and continue product development.

The latest round, which also included participation from existing investors G20 Ventures and Point Judith Capital, brings Evergage's total funding to more than $21 million. Matthew Safaii, managing partner at Arrowroot Capital, became Evergage's newest board member in tandem with the new funding. He indicated in the startup's announcement why he and other investors see so much promise in its future.

“Personalization is the word on every marketer’s lips for 2016, and Evergage stands above in our eyes. Their end-to-end personalization platform empowers marketers in any industry to harness the power of machine learning, analytics and big data–in real time–to effortlessly provide unobtrusive and meaningful interactions with customers across channels,” Safaii said in a statement. “We’re excited to back Evergage as it continues its strong growth trajectory and look forward to the company’s cutting-edge advancements in 2016 and beyond.”

Evergage said the new funding comes after both its average contract value and year-over-year revenue more than doubled. During 2015, the startup added new 50 new customers, including Tivo, WeddingWire and Xome, and reported more than 100 percent client revenue retention. The startup also expanded its offerings during that time, including an in-depth testing functionality and machine learning-driven recommendations.

In addition, the startup said it plans to increase its current 50-employee headcount by more than 70 percent by the end of the year. That would bring the project total employees to 85.

“Much like Salesforce.com became the standard platform for CRM, Evergage is poised to become the pre-eminent platform for customer engagement in the digital world. With unsurpassed behavioral tracking capabilities that integrate readily with virtually any existing customer data source, Evergage powers true real-time decision-making,” Karl Wirth, Evergage's co-founder and CEO, said in a statement. “With Evergage, travel companies, retailers, financial institutions, technology providers, media companies and more can now deliver maximally relevant digital experiences and interactions that are tailored to each and every individual across their digital properties."