Fundraising news is interesting, but it's even more interesting when it's about a company that powers a large number of massive retail brands. That is the case for Bluecore, which counts Staples, Cabelas and BCBG among its 160 or so blue-chip retail customers. The company is adding $1 million in annual recurring revenue every 45 days, an incredibly impressive feat and one part of the reason for the eagerness with which people (both customers and investors) are giving Bluecore cash.
If you want another performance metric, Bluecore's customer base has grown threefold in less than 10 months.
All of that apparently sounds pretty good to investors, since the company is today announcing that it has raised a $21 million Series B funding round. This round will bring Bluecore’s total funding to $28.2 million since 2013. Georgian Partners is leading the round, with participation from previous investors, including FirstMark Capital and Felicis Ventures.
“Fundamentally, most components found in the enterprise marketing stack were never conceived to handle the behavioral data volumes customers produce nor the ways marketers need to leverage these insights,” said Fayez Mohamood, co-founder, and CEO of Bluecore. “Georgian Partners’ focus around Applied Analytics and the addition of Justin LaFayette to our board will play a pivotal role in our expansion plans in the coming years.”
This molding of more transactional functionality with an overlay of behavioral analytics is going to be the typical approach that software vendors take in the future. No longer will demographic segmentation suffice. Rather, demographics with an overlay of reactive and responsive behavioral triggers will be necessary to increase the effectiveness of these sort of marketing tools in what is an increasingly competitive commercial landscape.
Bluecore obviously faces stiff competition from companies looking to apply behavioral analytics either as a stand-alone overlay or as an integrated part of a specific technology offering. What place, if any, Bluecore can carve in that busy world remains to be seen.
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