Konnecto raises $21M in Series A for the world’s first prescriptive path-to-purchase optimization platform
Konnecto, the creator of the world’s first prescriptive path-to-purchase optimization platform, has closed $21 million in Series A funding to fuel its team expansion and continued investment in innovation to capitalize on immense demand for its solution from enterprises globally.
The round was led by PeakSpan Capital, with participation from existing investors TPY Capital, Mindset Ventures, Differential Ventures, SeedIL Ventures, and Magna Capital Partners. The round brings the total capital raised by Konnecto to $29M to date.
The New York-headquartered, Tel Aviv-based-based startup will use the new cash infusion to expand its data science and engineering teams, as well as invest in expansion of go-to-market infrastructure and headcount to capitalize on the overwhelming demand it is seeing for its platform. In the past six months alone, Konnecto has tripled its customer base and increased revenue significantly in the past six months.
Since its inception four years ago, Konnecto has succeeded in creating a new category in marketing technology, prescribing targeted recommendations to increase online sales and optimize marketing ROI. Konnecto currently touts brands including MassMutual, Coca-Cola, eToro, Mercedes Benz, Phillips, and Stella Artois among its customers.
Founded in 2018 by Danielle Michaely, Erez Nahom, Hatzav Wolff, and Marni Mandell, Konnecto is designed to help brands and marketers reverse-engineer and understand the entire customer journey across multiple platforms while also enabling them to disrupt competitors’ customer journeys in order to increase market share.
In recent years, it has become increasingly difficult for marketers to determine which touchpoints influence consumers’ purchase decisions along their path to purchase. This challenge has escalated significantly with the ever-changing landscape of data privacy and the sunset of third-party cookies. Organizations are looking for a source of truth on what will drive impact and improve results in the online purchase journey for them against their competitors.
Struggling to solve this challenge, marketing teams spend many hours logging into a variety of disparate platforms in the marketing tech stack, analyzing data points that don’t provide them with the next best action that will improve conversions. Marketing leaders do not need more data or SaaS tools; instead, they are demanding insight into what is working, what touchpoints are influential in improving ultimate conversion, and clear prescriptive recommendations on what to do today to drive better results.
Konnecto is the first platform that identifies the most impactful vulnerabilities in the full path to purchase that led consumers to convert with competitors. This is done by reverse-engineering consumer journeys that ended up converting with the brand, its competitors or on a marketplace. Konnecto’s platform prescribes highly targeted and actionable recommendations across the entire digital marketing pie. This helps growth and marketing teams quickly focus on informed decisions and execution without the need for integrations across a brand’s broader tech stack. The platform was built without reliance on cookies and with complete compliance with global privacy regulations.
“Our investment in Konnecto is part of a long-standing thesis we’ve been developing centered around partnering with businesses that have demonstrated an ability to drive specific, tangible outcomes and significant performance improvement for marketers amidst an incredibly noisy vendor landscape and increasingly uncertain environment related to data privacy and global compliance mandates,” said Matt Melymuka, co-founder & managing partner, PeakSpan Capital.
“Macroeconomic pressure is forcing companies to be more efficient as budgets are slashed across the board, while still satisfying an expectation to execute at the highest level and generate attractive and continuously improving performance. That is obviously a tall order. The value that Konnecto’s platform has delivered to large, demanding organizations across the globe is astounding. The company is paving the way in supporting a new approach to value creation for marketing organizations today, shifting focus from reactive monitoring to prescriptive action suggestions. The rapid growth and overall performance Konnecto has demonstrated to date is among the best we’ve ever seen and we’re privileged to partner with the team in this next phase of development and expansion.”
“Management teams, boards, and VCs want their companies to stop spending marketing dollars wastefully, while market uncertainty is causing businesses of all sizes to need rapid results while spending less,” said Erez Nahom, Konnecto CEO and co-founder. “Konnecto uniquely addresses rapidly-changing market conditions and the demand they place on enterprises by providing both insight on the touchpoints that move the needle, but also what actions to take to drive conversion – maximizing revenue in a quickly changing market. We look forward to our latest funding helping to scale our product for organizations that look to stop the customer acquisition guessing game and improve their marketing efficiency significantly.”