Summary:
Hightouch raises $80 million in Series C funding, reaching a $1.2 billion valuation
Funding led by Sapphire Ventures with participation from notable investors
Focus on synchronizing data warehouses for marketing and sales teams
AI Decisioning product enhances machine learning capabilities for optimal campaign strategies
Client base includes industry giants such as Spotify and Grammarly
Last decade, companies like Segment transformed how organizations utilized APIs to integrate data from various applications to enhance marketing strategies. Now, a startup named Hightouch—co-founded by a former engineering manager at Segment—has announced $80 million in funding to pioneer the next phase: a platform enabling sales, marketing, and customer service teams to synchronize data warehouses and other locations, complemented by AI agents that facilitate this process.
Funding Details
Sapphire Ventures is spearheading this Series C round, with contributions from NVC, Amplify Ventures, ICONIQ Growth, Bain Capital Ventures, and Y Combinator. This funding elevates Hightouch to a $1.2 billion post-money valuation, approximately doubling its previous valuation from earlier rounds.
Strategic Developments
The raised capital will be allocated towards further developing Hightouch’s technology, business growth, and recruitment. Co-CEO Tejas Manohar noted that while at Segment, there was a significant need to enhance how APIs improved integrations, as the process could be too technical given the multitude of data sources organizations utilize.
Innovations in Customer Data Platforms
Hightouch has concentrated on developing tools in two primary areas:
- Customer Data Platform (CDP): Launched in 2020, this product allows both non-technical users and data scientists to leverage machine learning to utilize data from warehouses for marketing, sales, and customer service, marking a crucial shift in how data is approached.
- AI Decisioning: This newer offering, introduced in August 2024, utilizes machine learning and automation to conduct experiments and propose optimal marketing campaigns, responding to the growing interest in AI solutions among clients.
Client Adoption and Future Goals
Hightouch’s client roster includes major companies like Spotify, PetSmart, Tripadvisor, and Grammarly. The momentum in AI adoption has not only strengthened existing relationships but has also attracted new business opportunities. Hightouch aims to enhance customer experiences and maximize lifetime value through its AI Decisioning agents.
Previous Fundraising
Hightouch’s funding history features a seed round in 2020, a $40 million round in 2021, and a $38 million round in 2023, solidifying its position in the market as a leader in customer data syncing and AI-driven marketing tools.
Comments