London-based Kluster, a platform that enables companies to beat their revenue targets with its revenue strategy AI platform, announced on Tuesday that it has raised $5M (approximately €4.53M) in a Series A round of funding.
Kluster says it will use the money to accelerate its product development and revenue expansion, as well as expand its go-to-market team. The funds will also help the company to expand its presence in the American market and hire executives between 2023 and 2024.
The Series A round follows the company’s earlier funding of $1M in April 2020 led by SuperSeed and Newable Ventures.
Investors in this round
The current round was led by Foresight Group, a leading listed infrastructure and private equity investment manager that operates in eight countries across Europe, Australia and the US with an AUM of £12.2B.
The round also saw participation from existing investor SuperSeed and strategic angels, including Cognism CEO James Isilay.
Jack Eadie, MD at Foresight, says, “They (Kluster) have a strong product-market fit, and I’m relieved to see a platform that enables companies to forecast revenue more accurately. Kluster’s team is shaping the future of sales, and I am eager to see what they develop next.”
A revenue analytics and forecasting platform
According to Kluster, venture capital spending decreased by 35 per cent in 2022. Since then, over 70 per cent of businesses have failed their sales targets, and close to 300,000 tech workers have been let go. For investors, profitability has become a key consideration.
Dan Thompson, CEO of Kluster, says, “It has never been more important to plan and execute revenue strategy than it is today. With the recent VC bubble, the metrics that mattered went from growth, burn and margins to growth, growth and growth.”
“The bubble burst, and companies have now rediscovered the importance of rigorous planning, robust strategy and comprehensive revenue reporting. Which is why I am delighted to partner with Foresight and deepen our relationship with SuperSeed, to bring our solution to this problem to the global market,” adds Thompson.
Founded in 2016 by Dan Thompson and Rory Brown, Kluster is a revenue analytics and forecasting platform for scaling technology businesses.
By giving revenue leaders the playbook to plan, develop, and carry out their revenue strategy like the top technology firms in the world, Kluster helps them meet goals every quarter by utilising the advanced modelling technologies available.
Kluster’s platform is used by hundreds of revenue teams to provide accurate predictions, increase the efficiency of their sales teams, and develop go-to-market strategies. Sales data is transformed into useful insights especially aimed towards financial advantage by the Kluster Intelligence Platform.
How does Kluster help the sales team?
Kluster benefits sales executives in two ways.
First, it aids in the development of the sales plan. This is a thorough plan of everything that must occur over the course of the quarter and the year, including the number of salespeople to employ, the number of sales calls to conduct, the prospects to speak with, the chances to develop, etc.
Everyone is aware of what has to be done because everything has been broken down into KPIs.
Second, Kluster keeps track of performance, updates the forecast, and adjusts the strategy as necessary. Its technology gives a real-time projection of company performance based on activities throughout the sales force.
This enables sales executives to identify potential performance gaps and the levers they should use to enhance results.
Currently, Kluster supports growing companies across North America and Europe, including CurrencyCloud, ExtraHop, OysterHR, SEON, TrueLayer, and TigerConnect.