Dealroom has raised 6 million in a Series A, it was told.
The company raised 2.75 million in early 2020. Its database competes with a number of other competitors in North America.
Knight Venture Capital and Shoe Investments invested in the company in the Series A. Dealroom founder and CEO Yoram Wijngaarde was asked a number of questions by TechCrunch to better understand the round.
Dealroom has a business.
The startup collects data on private companies. Dealroom says that the data is cleaned and run through the company's software to cover actionable predictions.
Data collection, cleaning and synthesis are linked to Dealroom.
You can see why it would want more capital to handle the influx of funding events. Dealroom should be enjoying the same boom times as the rest of the company. The private corporate landscape is expanding quickly and many participants in the startup game are flush. Dealroom has a lot of work to do and a lot of people to sell it to.
The company makes money by selling access to its platform on a software as a service basis and by providing an application programming interface for both business and government customers. Customer research is also done by the company. It has 50 government customers that make up a third of its revenues.
The company has a revenue mix that is roughly equal between investors, B2B companies and governments, according to the CEO. Three different groups are buying what Dealroom has to offer, and there isn't a single leg on the revenue stool.
It feels like a strong moment for Dealroom and its global rivals, the fact that governments are such a large portion of Dealroom's revenue feels notable, and bullish. Governments are paying attention to the startup game as it spreads more evenly around the world and are willing to spend to better understand their local market and those around them.
The company raised just 6 million. That is a small round in today's market.
The CEO said that Dealroom didn't want to get too far ahead of itself because of the availability of capital. Dealroom isfortunate to have strong growing revenue, coupled with healthy capital efficiency, two things that would lower a near-term need for more capital, and therefore dilution.
What are the next steps?
The data game is pretty good because of having data, collecting data, and getting the picture. Dealroom wants to tinker with its data in the future. When asked what the future holds for his company, he said that it is focused on expanding the power of the platform to help clients discover promising companies at an ever earlier stage.
The company can add a zero to its pricing page if it can manage that. I worked for another company that wanted to build something like Mattermark. It is a big, hard problem and one that will require oceans of accurate, to-the-minute data.
The data collection business has a particular mechanic that is important to us. We asked Dealroom if it counts data collection and curation as a cost of revenue or a marketing operating cost. Here is what Wijngaarde wrote back.
Data collection and product development are counted as part of the cost of revenues. We do a lot of human-led research, which is counted as cost of revenue, but also as cost of marketing, as this results in a lot of content marketing.
It turns out that the answer is both. When one of the companies in the private market data business files to go public, we will get a better understanding of that mix.
