Lytics has raised more funding to help brands such as Nestlé, The Economist, Atlassian and others bolster their 1-to-1 customer marketing outreach.
The Portland, Ore.-based startup announced a $35 million Series C round led by late-stage software growth equity firm JMI Equity. Existing investors such as Comcast Ventures, Two Sigma Ventures, Rembrandt Venture Partners, and Voyager Capital also participated.
What Lytics does: The 7-year-old company captures customer data across various databases and marketing tools, aggregating information in one place and using machine learning to help consumer-facing companies with their personalized marketing efforts.
Lytics CEO and co-founder James McDermott described Lytics as a “control tower for marketing” that helps unify customer data and provide insight into how to reach those customers with relevant content and offers.
“Our platform dramatically simplifies the marketing workflow for marketers who want to use customer data to run more targeted campaigns and achieve their strategic goals,” he told GeekWire.
Traction: Lytics has more than 175 enterprise brands paying for its software. The Economist, for example, uses Lytics to decrease acquisition costs and grow digital subscriptions.
“They identify web visitors who are not already subscribers and who are likely to subscribe and target them with highly relevant subscription CTAs and display ads,” McDermott noted.
Lytics saw revenue increase by nearly 3X last year. It employs 79 people and expects to reach 150 employees over the next year. The company raised its Series B round this past April and total funding to date is $58 million.
Competition: There are various competitors tackling the same problem. Many companies use their own software to analyze internal marketing data; external consultancies offer something similar; and several early-stage startups — Amperity, Amplero, and Usermind are three from the Pacific Northwest — have a similar pitch.
So how is Lytics different?
“Many of our competitors focus on serving IT professions and their products are limited to service the collection, unification and routing of customer data,” McDermott said. “They don’t go the last mile of delivering actionable insights that marketers can use to inform and integrate into their marketing campaigns and workflow. Lytics was built from the ground up to serve the marketer and simplify their ability to take action on customer data and insights. Our built-in data science helps marketers bridge the gap between data and intelligence with decision-making to support campaign execution and optimization.”
Investor insight: Backers describe Lytics as the leader among customer data platforms. “As marketers seek to coordinate more of their campaigns across channels, Lytics is perfectly positioned to make this possible,” Suken Vakil, general partner at JMI Equity, said in a statement.
“Starting with our initial investment, we recognized the disruptive role Lytics’ vision for customer data platforms could play within the world’s largest brands,” added Erik Benson, partner a Voyager Capital.
Portland: As Silicon Florist noted, Lytics is part of a small but growing marketing tech startup cluster in Portland that also includes Act-on and Opal.