Gong, a US-Israeli company that uses AI-based technologies to analyze customer data to help sales teams make data-driven decisions, said Thursday it has raised $250 million in a series E funding round, tripling its valuation to $7.25 billion.
The company was set up in 2015 and has raised to date $584 million. In August 2020 the startup raised $200 million in a Series D round at a $2.2 billion valuation.
Franklin Templeton led the Series E investment round with the participation of existing Gong investors including Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger Global, the company said.
Founded by Amit Bendov and Eilon Reshef, Gong has developed software that uses natural language processing and machine learning tools to boost sales and customer service.
The software is able to document the company’s interactions with customers — whether via emails, phone calls and other ways of communication — to provide a fuller picture of customer needs. AI-based technology then understands what is being said in these interactions and helps uncover patterns, preferences and trends. The technology then recommends the next best steps for sales teams to move deals forward and ensure customer satisfaction, allowing for data-based decisions as opposed to those based on static reports, anecdotal evidence and self-reported information.
“This enables customer-facing professionals to make proactive decisions informed by unfiltered business reality instead of opinions,” the statement said.
According to Gartner, “by 2025, 60% of B2B sales organizations will transition from experience- and intuition-based selling to data-driven selling, merging their sales process, sales applications, sales data and sales analytics into a single operational practice.”
“Technologies aimed at optimizing productivity and customer satisfaction became more important than ever in the past year as the business world transitioned to a predominantly remote work model,” said Ryan Biggs at Franklin Templeton. “Once businesses experience Gong’s revenue intelligence, its value is undeniable. We believe this product has become a fundamental requirement for professionals looking to drive sales based on the true needs of customers.”
The company said it has over 2,000 customers and employs over 550 workers worldwide. The firm’s technology has analyzed over half a billion customer interactions since its founding, the statement said.
“We experienced massive growth in the past year, proving revenue intelligence is a game changer for companies,” said CEO and co-founder Bendov. “As professionals across the globe were forced to connect with customers remotely for the first time, they became even more reliant on data and insights to win the hearts and minds of their customers. Gong was no longer a luxury, but a necessity.”