A number of previous investors contributed to the $120 million Series C round of GtmHub.
Gtmhub raised over 40 million dollars in total, making it Series C around triple its prior aggregate capital base.
The startup has had a busy year in the OKR software market, making the huge round more understandable than it is when compared to Gtmhub's smaller Series A and B rounds. WorkBoard raised a $75 million round and Ally sold to Microsoft.
Koan, a smaller OKR player, sold to GtmHub. More context can be found in the prior notes regarding the OKR software market.
The COO of Gtmhub, Seth Elliott, talked to the team about how quickly his startup may grow next year.
Why raise so much money?
It's part of the math, according toElliott. He said that it was time for GtmHub to raise more capital, but that it could not have raised a smaller amount. There wouldn't have been enough pie to go around in a $50 million investment.
New lead investors like Index want to have a material ownership position in their new company. Smaller rounds become impossible for companies of a certain valuation mark because prior investors want to use up as much of their pro-rata rights as possible.
No, Gtmhub is not sharing its valuation. We wouldn't be surprised if Gtmhub was nearing unicorn status after its Series C.
The company announced its Series B in January, how did it raise more capital? According to the man, growth.
GtmHub expects to triple its revenues this year and possibly achieve the same growth rate next year, according to the COO. The new capital will support that goal.
The OKR space is diverging between players. WorkBoard talks about its enterprise clients. Gtmhub told TechCrunch that it plans to grow from a corporate planning software concern into something more proactive, perhaps using company data to help customers identifyinflection.
The cost of machine-learning talent in today's market will make that work expensive.
The market for OKR.
The OKR market may be my favorite startup cluster to track. Big Tech firms take note of the fact that it features a number of well-funded startups competing directly. Tracking how WorkBoard and GtmHub perform in the future will be fascinating.
If they have a good year next year, they will be near an IPO candidate in 2023. Bring it on.
