Helsinki-based startup Leadfeeder has secured €3.1 million in Series A funding round which was led by Endeit Capital along with the participation of Finland’s Vendep Capital and Superhero Capital.
As most visitors do not share their contact information, B2B companies strive hard to generate sales via websites in order to generate leads. Leadfeeder helps B2B companies use website analytics so as to generate new leads and they are able to analyze who’s visiting the website without any extra script installation.
Leadfeeder stated that the new capital will be used to further develop its AI-powered lead automation tool and to grow their team with a focus on international expansion. This Series A investment comes after a 12 month period that has seen the startup cross the €4million mark and reap around 3,000 paying customers. It has even witnessed significant growth in both US and EU markets.
Leadfeeder co-founder and CEO Pekka Koskinen described the problem the company has set out to solve, that B2B companies try to generate sales leads via their website, but 98% of visitors never leave their contact data.
So as to remedy this, through the use of Google Analytics data, Leadfeeder is able to reveal the names and behaviour of companies that visit a website. This data then gets fed into the existing CRM system in a company along with their email marketing tools. The data points the sales departments in the direction of prospective B2N customers that have shown prior interest in its services.
Leadfeeder’s customer base is usually sales and marketing departments at small and mid-sized B2B firms, in the U.S and Europe most of whom belong to the software or professional services industry, which has a high sales lead value and does active outbound sales. They also declared that they are GDPR compliant and do not capture any personally identifiable information.
Pekka Koskinen explained that leads are scored by Leadfeeder based on their behavior and then that data gets combined with insights from their CRM and email marketing tool. “We are very excited by our new partnership with Endeit Capital and for the continued support of Superhero Capital and Vendep Capital,” he further added.
Jelle-Jan Bruinsma, Partner at Endeit Capital mirrored Pekka Koskinen’s sentiment, “We are extremely excited about our investment in Leadfeeder as it brings together key ingredients for success: A stellar and experienced team, laser-focused on creating value for their customers, best in class technology that is solving a hard and very real problem for sales teams, and exceptional traction for their solution in the US.”
Leadfeeder plans to use the fresh funding to improve the algorithms that are being used for lead generation while also hiring more people and accelerating their international expansion.
Founded in 2012 in Scandinavia, Leadfeeder is a sales lead generation tool for B2B companies that helps convert promising website visitors into sales leads.