Coro’s Revenue Grew $100M in 4 Years
- $1M ARR in 2020
- $6M ARR in 2022
- $12M ARR in 2023
- $100M ARR in 2024
Dror Liwer, co-founder and Chief Marketing Officer of Coro, attributes the company’s explosive growth to a strategic shift.
Over the past three years, Coro has experienced three hundred percent year-over-year growth, expecting another two to three hundred percent increase this year.
This trajectory is impressive, given the size of their revenue leaps. In March 2024, Coro announced a $100 million Series D round led by OnePeak out of London, positioning them to end the year around $100 million in revenue and on track to build a billion-dollar ARR company in the cybersecurity space.
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Launching a Product That No One Else Has
Coro made waves in the cybersecurity market by being the first to introduce a modular cybersecurity platform targeting the mid-market.
“Coro is the world’s first and only modular cybersecurity platform that is targeting the mid-market”
-Dror Liwer, Co-Founder of Coro
This innovative approach set them apart from competitors who were trying to push enterprise-level solutions onto mid-market companies or offering consumer-grade products to SMBs.
Liwer explains the fact that if you look at the cybersecurity industry, they are trying to push an enterprise product to a mid-market company’s, SMB’s, or a consumer, and Coro “came to the table and we said enough of that”.
Coro’s solution was built from scratch to meet the unique needs of mid-market companies, covering all aspects of cybersecurity in one simple, comprehensive SaaS product.
“We’re going to build something that is unique to this market and target this market in a way nobody else has”
-Dror Liwer, Co-Founder of Coro
The platform offers modular solutions, allowing companies to choose the specific cybersecurity services they need, such as email security or endpoint security, and expand their usage as required.
This flexibility and focus on the mid-market have been key drivers of Coro’s rapid growth.
Moving from Direct Sales to Channel-First
The decision to pivot from a direct sales model to a channel-first approach was pivotal in Coro’s transition from moderate growth to explosive revenue acceleration.
Don’t Skip Direct Sales
Initially, Coro launched its product in 2020 with a traditional direct sales model, cold-calling organizations to sell their comprehensive cybersecurity solution. Dror explained how they started fresh and built something they thought people would need.
While this approach generated some traction, it became clear that direct sales alone wouldn’t suffice.
“You need to sell direct. But you also need to build an aggressive channel program, which means other people are going to sell your stuff.”
-Jim Tarantino, CRO of Coro
This insight led Coro to try out channel partnerships, despite fear of relinquishing control.
All Channel Partners Are Not Alike
Jim brought in Tom Turner, a channel chief, who built a robust channel program for Coro. They discovered that while their all-in-one concept was appealing, it was challenging to sell due to existing cybersecurity investments.
In 2023, Coro reimagined its product as a modular platform, allowing customers to consume it module by module. This allows customers the flexibility to select only the specific cybersecurity modules they need. For example, they can opt for just email security or endpoint security without having to purchase the entire suite. This modular approach makes it easy for businesses to tailor their security solutions to their unique requirements.
This modular approach facilitated a more accessible entry point for new customers, making the product easier to sell through channel partners.
The Right Channel = Force Multiplier
Coro’s presence at the Channel Partners Expo in Vegas underscored their commitment to the channel strategy.
Transitioning from a predominantly direct sales model in 2020 to seventy percent channel in 2023, with expectations of reaching eighty-five percent in 2024, highlights the success of this shift.
Direct sales remain crucial for market testing new products and concepts before introducing them to channel partners.
Coro’s channel strategy involves three types of partnerships, each offering unique benefits.
1. Lead Exchange
Some companies provide leads to Coro in exchange for a commission on closed deals. These partners don’t engage in the actual selling, simplifying the process for both parties.
2. Service Providers
MSPs and MSSPs form the largest segment of Coro’s channel partners. These service providers already have relationships with mid-market businesses, making it easier to integrate Coro’s cybersecurity solutions into their existing offerings.
3. Extension Partners
These partners extend Coro’s services while leveraging their customer base for mutual growth. For instance, collaboration emails from SaaS Open Conference attendees led to opportunities for shared access to customer bases, significantly amplifying business growth.
What is the Right Channel? 3 Key Elements
The ideal partners lie at the intersection of three key elements: audience, incentive, and reason.
1. Audience
Partners must sell to Coro’s ideal customer profile (ICP). If they don’t share the same target audience, the partnership is unlikely to succeed.
2. Incentive
Clear incentives are vital for motivating partners to sell Coro’s products. While financial incentives are common, other forms of motivation can also be effective.
3. Reason
End customers must have a compelling reason to purchase through the channel partner. Without this, the partnership becomes a mere formality, failing to generate significant revenue.
Revenue Growth Through Partnerships
Partnerships have driven Coro’s revenue growth, addressing regulatory requirements and leveraging strategic collaborations.
Regulatory Requirements Drive Need
New FTC regulations mandated cybersecurity programs for any business with electronic financial dealings. This rule affected a wide range of businesses, including car dealerships.
Coro’s partnership with ComplyAuto, a SaaS compliance company, provided a rapid solution. Partner retention and engagement are key indicators, Dror says.
SaaS Partnership with ComplyAuto
ComplyAuto, serving over 4,500 car dealerships, collaborated with Coro to offer cybersecurity compliance. “Their customers needed this because if they hadn’t done this, they couldn’t have offered loans to their customers,” explained Dror. This partnership rapidly onboarded thousands of dealerships, showcasing the power of strategic alliances.
Coro’s partnership strategy has resulted in tens of thousands of seats being added in under a year by focusing on mid-market businesses and making sure their channel partners have the right audience.
Measuring Success in Partner Programs
How Do You Measure a Partner Program?
Success in channel partnerships can be measured by the number of partners, their activation rate, partner retention, and engagement. These metrics indicate the effectiveness of the partnership and its contribution to revenue growth.
How Do You Measure Your Partners?
Coro evaluates partners based on sourced revenue, influenced revenue, active deals, and the cost of acquisition. Financial incentives are tied to these KPIs, ensuring a mutually beneficial relationship.
Learnings
“When you approach another SaaS company, us, for example, don’t think about selling us on your software. Think about how we can leverage each other well beyond that one sale. SaaS companies are the most ripe for this kind of collaboration.”
-Dror Liwer
This approach has been instrumental in Coro’s journey from a startup with zero revenue in 2019 to a leading cybersecurity firm on track to reach $100 million in revenue.
Coro’s channel-first strategy has not only accelerated its growth but also established it as a formidable player in the cybersecurity market. By choosing the right partners and fostering mutually beneficial relationships, Coro continues to scale new heights in revenue and market presence.