When measuring SaaS success, companies look at several key metrics, including annual recurring revenue (ARR) and net revenue retention (NRR). The latter measures the amount of recurring revenue from existing customers. If it goes up, it means customers are expanding their use of the product, making it a key metric for companies selling software as a service.
Early stage startup Reef.ai realized that there were few tools to automate the data set around NRR and built a platform from the ground up to help. Today, the company announced a $5.2 million investment.
“Our whole vision is to create and play a platform for mature organizations from early-stage to mid-stage startups to extract revenue from their customer base and drive revenue better.” Brenton Grimes, the company’s founder and CEO, told TechCrunch.
The system can connect to every system in the organization that touches customers, from building a data warehouse to store this information, such as Salesforce and HubSpot for customer data, to systems that collect revenue data from the customer, or other related software. For the customer.
“We’re very good at interacting with, digging into, and analyzing incoming data and patterns. And then on the other side, we’re pulling engagement data. So think product telemetry, think marketing and engagement data, think support engagement data, etc. And what we’re doing is being able to really pull these data elements together. And we actually build a data warehouse for each of our customers,” Grimes explained.
His background was working as Global Head of Customer Success at MuleSoft when he started looking at ways to track revenue data from existing customers. It’s set up an internal system that you might go through occasionally, but it makes you think about a product that provides accurate NRR measurement when you need it.
In order to build such a solution, he launched Reef.ai in 2021, and he believes that this is a very low point and he believes that the quality information of the customer success department can help existing customers to expand their use.
“We call ourselves a pure retention engine, and there’s nothing really focused on that as a specific goal,” he said.
The company already has more than 30 clients, some with six-figure contracts, and expects to exceed $1 million in ARR this year. The company currently has 10 employees and a former executive sponsor of Mulesoft’s Diversity Council has made diversity a core value for their new company.
“I think we embraced it as a cultural value and something very intentional from the beginning, and I want to get up every day to go to work and create an organization where everyone is happy. Of course they are safe and they need to be motivated to do their best work,” he said.
Today’s $5.2 million round was led by Stroke Capital, along with SCV-SBI, a joint fund between Startup Capital Ventures and SBI Holdings; Builders VC; Dig Ventures, a fund led by MuleSoft founder Ross Mason; And many industry angels.