Australian customer research software startup Dovetail has reportedly raised USD 63 million in a Series A funding round led by U.S. venture capital firm Accel. The company has now raised little over USD 70 million in total, with its additional capital valued north of USD 700 million.
The company's inclination towards developing software for the user research market may appear esoteric, yet it scaled to a staff of six with roughly a half-million dollars in yearly sales on its own in its early days. It now intends to utilize the funds in its product suites and expand its reach in the U.S. market, which accounts for the maximum of its client base.
Felicis Ventures, one of the company’s investors, wanted to invest more in the company before the 2020 year-end. Dovetail did not require the money, said its CEO, so it raised a seed round at a valuation of more than USD 100 million, a price reflective of its market position.
Dovetail's software collects user input through NPS (net promoter score) surveys, audio, video, and text responses, which are then tagged by teams, machine-analyzed, and shared across a business. The idea, according to CEO and Co-Founder Benjamin Humphrey, is to create a relational database in which businesses save their institutional knowledge about customers to make quick decisions.
He explained that when a product manager (PM) leaves a company, they take a lot of expertise with them. It means that new PMs will have to race around the firm asking questions to be up to speed, rather than having that information saved and safe. Dovetail can assist businesses in retaining research data and information, making them more accessible and lasting.
The Australian firm currently has a staff of 65 people and intends to bring board 100 employees in the coming 12 months in offices including Sydney and San Francisco.
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