Most businesses go nowhere without an effective sales team. If you don’t have representatives efficiently reaching out to potential customers you know you can serve, your product is a hobby, not a business.
Groove is a platform built to help sales teams sell smarter, grow their pipeline, and drive revenue. Their software helps teams improve productivity by enhancing communication with their accounts, tracking results, and making data-driven decisions.
How much is Groove doing in ARR?
Groove is a pure-play SaaS business that charges its customers on an annual subscription basis. According to CEO Chris Rothstein, the average customer pays Groove around $13k per year right now.
With 400 total customers, Groove has grown to north of $5M in ARR at this point in time. The company has more than doubled revenue year over year and is up from $2M in ARR twelve months ago.
What is Groove’s churn?
Rothstein explained that growth has come from both expansion revenue within their existing cohorts and adding new customers. The company is currently exhibiting 102% net revenue retention monthly and has been able to double ACV in year two.
Customer acquisition for Groove has come mostly through their inside sales team. Rothstein explained their intricate incentive structure on The Top Entrepreneurs Podcast and shared that the company spends around $8k to land a new deal, receiving payback in around 9 months.
How much has Groove raised?
Launched in 2014, Groove bootstrapped initially before raising a small $800k seed round. To date, the company has raised $3.8M in total outside capital and is contemplating another raise in the near future. If so, the company would look to raise $5M on a pre-money valuation of around $30M.
Groove’s team of 35 full-time employees is headquartered in San Francisco with employees in San Diego and Seattle.