- Customer Success company Catalyst announced it has raised $25 million in Series B funding led by Spark Capital
Catalyst — one of the fastest-growing SaaS startups helping businesses make Customer Success a top priority — announced it has raised $25 million in Series B funding led by Spark Capital. Founded by CEO Edward Chiu and COO Kevin Chiu, Catalyst has raised a total of $45.4 million since the company launched two years ago.
The investor interest in Catalyst highlights a seismic shift for many businesses. And as sales revenue is expected to decline over the next few quarters for technology startups and incumbents, it is more vital than ever to maintain relationships with existing customers and hold onto earned revenue streams. Plus Catalyst helps teams harness a deeper understanding of customer health at a time when driving added revenue from existing customers is a key source of growth.
Since raising its Series A less than a year ago from Accel, Catalyst has grown ARR by 380%, opened their NYC headquarters, and hosted its first community event where leading companies gathered to discuss the future of Customer Success with participation from companies like Asana, Braze, Carta, Invision and Segment. And this new round of funding will go toward significant market expansion, scaling new employee growth, and further community building.
Key Quotes:
“We’re in a unique position to help businesses succeed through a time when customer retention is critically important. Catalyst is the first company to bring Customer Success to the center of organizations, and it’s vital to have all hands on deck to help customers succeed.”
-Edward Chiu, CEO and Co-Founder of Catalyst
“We are thrilled to partner with what we believe will ultimately become a category-defining company. Catalyst offers the most intuitive workflow software for Customer Success teams, along with the most powerful way for product managers, marketers, data scientists, and executives to engage strategically around their existing customer relationships.”
-Spark Capital general partner Will Reed
“It’s never been more important to double down and serve your existing customers. Businesses thriving in this environment put Customer Success at the heart of their organization. Before you win new customers, become indispensable to the ones you already have.”
-Vas Natarajan of Accel, an existing investor that followed on the round
“Domino is industry-recognized for our strong Customer Success team. Catalyst has been an instrumental partner in helping us drive our key initiatives, as well as providing a single source of truth for customer health across all of our departments.”
-David Cole, Chief Customer Officer at Domino Data Lab
“Now is also the time for customer experience (CX) leaders to position themselves at the forefront of the longer-term shifts in consumer behavior that result from this crisis. Keeping a real-time pulse on changing customer preferences and rapidly innovating to redesign journeys that matter to a very different context will be key.”
-McKinsey & Company
