We’re excited to announce that SuperSeed has closed an investment into Kluster, a start-up whose SalesTech platform uses machine learning to accurately predict revenue forecasts and manage pipelines for high-growth businesses.
Kluster is solving the problem that businesses aren’t leveraging their data effectively when it comes to pipeline management and reporting. Existing CRM systems generate vague reports that often are based more on hope than on facts. This leads to targets being missed, long sales cycles, and disparity between executive level strategy and function level execution. Revenue uncertainty is causing many businesses to miss targets by as much as 50% and which are often set top down. Pipeline meetings create hours worth of admin for the sales team and management, and often the ultimate result of manual forecasting is vague and incorrect data. The C-suite then relies on poor data to set and execute strategy, and the vicious cycle continues.
The market for sales and CRM analytics is already worth over $8 billion and is growing at a 12.8% CAGR through 2025. There is a real demand to support revenue growth, and optimise sales processes and reporting through technology and cloud based services as these businesses scale – and Kluster are well positioned to capitalise on this opportunity with their AI enabled, intelligent reporting and analytics.
Kluster’s solution has demonstrated considerable improvements for customers who are using the platform, and have been able to achieve a 24% increase in win rate, 16% reduction in sales-cycle, and an 8% increase in AOV. The team have secured a number of high-growth customers including Cognism, Go-Cardless, Cision, and Saba Software and with the new funding are preparing to scale into more clients and capitalise on the market demand. Kluster has consistently outperformed the major incumbents in revenue management space for a number of reasons; the level of flexibility and customisation combined with AI driven forecasting, and taking the human out of the loop has greatly increased Kluster’s ability to provide more accurate reports, in real-time – something no one else is currently able to do.
We have been wholly impressed by co-founders Dan Thompson and Rory Brown who have a real understanding of the problem with Rory’s background in corporate sales, and how to apply technology to uncover otherwise hidden value with Dan’s experience in building statistical models and pricing software for the insurance market. It is a rare combination when you have two founders who are clearly very successful in their respective fields, carrying a high level of confidence in their abilities – but at the same time are also entirely open to learning and applying new ideas in the business. Both Dan and Rory are supremely focused on delivering their vision to scale Kluster into the leading sales analytics and business intelligence company globally and are continuing to grow a very strong team which is another point which really stood out to us. In a start-up, the team is crucial, and as a founder you need to be able to lead and grow an all-star team and this is what we’ve seen Dan and Rory do, in a very short period of time.
We’re delighted to add Kluster to the SuperSeed portfolio and look forward to working with the Kluster team on accelerating their revenue growth and go-to-market in the UK and overseas. We also believe that they are well positioned to help businesses in the new ‘wartime’ we find ourselves in. There is an increased need for businesses to optimise their sales activities and Kluster have developed a solution which will serve these forward thinking organisations and further strengthen their commercial functions beyond the pandemic. Like many investors we’re very much open for business – but certainly not ‘as usual’. We clearly owe a great level of care to our LPs for the investments we make in these uncertain times and we’re confident that Kluster have the ingredients that give them a shot at being one of the winners who will emerge post Covid-19 stronger than before it – and with an even larger customer base!