Leadfeeder, a Helsinki-based startup that helps B2B companies generate new leads from website analytics, has closed a €3.1 million in series A funding. Leading the round is Dutch growth capital firm Endeit Capital, with Finland’s Superhero Capital and Vendep Capital participating.
The Finnish company says the new capital will be used to further develop its “AI-powered” lead automation tool, and to grow the Leadfeeder team with an eye on international expansion. I’m also told the Series A investment comes after a 12 month period that has seen the startup cross the €4M ARR mark and garner around 3,000 paying customers.
“B2B companies try to generate sales leads through their website, but 98 percent of visitors never leave their contact information,” says Leadfeeder co-founder and CEO Pekka Koskinen, describing the problem the company has set out to solve.
To remedy this, Leadfeeder uses Google Analytics data to reveal the names and behaviour of companies visiting a website. That data is then fed into a company’s existing CRM and email marketing tools, pointing the sales department in the direction of potential B2N customers that have already showed an interest in its services.
Leadfeeder says it is fully GDPR compliant and does not capture any personally identifiable information.
“Leadfeeder scores the leads based on their behaviour and combines the data with insights from their CRM and email marketing tool,” explains Koskinen.
“The leads are enriched with company background and decision maker data and sent directly to the customer’s CRM. By receiving this kind of intent data into the CRM, salespeople are more informed about what’s happening on their website and can focus their sales efforts on most potential opportunities”.
Koskinen tells me Leadfeeder’s typical customers are marketing and sales departments at small and mid-sized B2B companies, both in Europe and in the U.S.
“Many customers are from [the] software or professional services industry,” he says. “In those industries the value of a sales lead is high and they are doing active outbound sales”.
To that end, the startup generates revenue by charging customers a monthly subscription fee based on their website traffic. I’m told that pricing starts from $59 per month and customers typically pay around $110 per month.