Amperity Raises $ 100 Million on Over $ 1 Billion Valuation to Help Companies Build Better Customer Profiles – TechCrunch
Cookies and other third-party data sources are a dodo bird’s-eye view for many companies, regulators, and platforms, emphasizing technology that will help businesses manage their customer data better by them- same. Today, one of the companies that builds tools for this purpose announces a big round table, highlighting its growth.
Amperity, which provides a customer data platform for its businesses, has raised $ 100 million in funding for a valuation of over $ 1 billion. The startup typically works with large consumer-focused companies like Starbucks, Wyndham Hotels & Resorts, Patagonia, and a hundred others, helping them better leverage and organize their own data to develop better customer profiles.
Series D funding – led by HighSage Ventures with participation from previous funders Tiger Global Management, Declaration Partners, Madrona Venture Group and Madera Technology Partners – brings the total raised by Amperity to $ 187 million and comes two years later the company’s $ 50 million Series C. .
The last year of increased online activity and online shopping has placed much more emphasis on the data businesses are accumulating on their users and how they can best leverage that information to grow. more. Amperity said that in 2020, annual recurring revenue increased by 100%, in part because of this growing interest in how to mine customer data, not least because the old way of doing things has fallen. obsolete.
Indeed, Kabir Shahani, the CEO who co-founded the company with CTO Derek Slager, believes the trend to move from third-party data to proprietary data has played and will play a much bigger role in Amperity’s long-term growth. .
“COVID has definitely ‘helped’,” Shahani said, “but for me the story is less about that and more about how our idea was validated.”
The idea he and Slager had come up with was the addiction and problems with third-party cookies, an issue that has persisted “for decades,” he said.
“When this idea started to trickle down, when we looked to start the business, we thought it had to be solved already. It was mind-boggling that not. The reason why: The data is in too many silos, and it is not connected, which makes it impossible or at least very difficult to use.
Amperity’s approach has been to create the connectivity to bring data together out of their silos, and then create ways to merge it and make it useful. In this regard, it’s no different from another company that also got funding today, Quantexa, which originally built something similar to track fraud, but is now also tackling customer data platform activity.
As with Quantexa, Amperity has taken the approach of treating this as a big data problem that AI can help solve.
“At the root of this is a tough IT problem, all the disparate data is running from different keys,” he said. Some customer IDs are based on phone numbers, some on physical addresses, some on emails, etc. “To connect all you need a single key, but no one had done it before. So we thought to ourselves: what if we try to do it using machine learning? They hired “the world’s greatest probabilistic data scientist,” who built the Amperity models, and that’s what powers the service today.
It’s a huge market worth over $ 114 billion, so it’s no surprise to see investors like Tiger Global looking to get involved.
“Amperage represents the future of how customer data can benefit both consumers and businesses by delivering the most comprehensive AI-based CDP on the market today, ”said John Curtius, Partner at Tiger Global Management. “The company’s technology brings disproportionate value to the world’s biggest and most admired consumer brands. In addition, they continue to attract exceptional talent at all levels of the company to advance their mission, including the addition of Starbucks CEO Kevin Johnson to its board of directors last year. “