As we wrote last week in How Salesforce paved the way for the SaaS platform approach, the ability to build extensions, applications and even whole companies on top of the Salesforce platform set the stage and the bar for every SaaS company since. Vlocity certainly recognized that. Targeting five verticals, it built industry-specific CRM solutions on the Salesforce platform, and today it announced a $60 million Series C round on a fat unicorn $1 billion valuation.
The round was led by Sutter Hill Ventures and Salesforce Ventures. New investors Bessemer Venture Partners and existing strategic investors Accenture and New York Life also participated. The company has now raised $163 million.
Company co-founder and CEO David Schmaier whose extensive career includes stints with Siebel Systems and Oracle, says he and his co-founders (three of whom helped launch Veeva) wanted to take the idea of Veeva, which is a life sciences-focused company built on top of Salesforce, and extend that idea across five verticals, instead of just one. Those five verticals include communications and media, insurance and financial services, health, energy and utilities and government and non-profits.
The idea he said was to build a company with a market that was 10x the size of life sciences. “What we’re doing now is building five Veevas at once. If you could buy a product already tailored to the needs of your industry why wouldn’t you do that,” Schmaier said.
The theory seems to be working. He says that the company, which was founded in 2014, has already reached $100 million in revenue and expects to double that by the end of this year. Then of course, there is the unicorn valuation. While perhaps not as rare as it once was, reaching the $1 billion level is still a significant milestone for a startup.
In the Salesforce platform story, co-founder and CTO Parker Harris addressed the need for solutions like the ones from Veeva and Vlocity. “…Harris said they couldn’t build one Salesforce for healthcare and another for insurance and a third one for finance. “We knew that wouldn’t scale, and so the platform [eventually] just evolved out of this really close relationship with our customers and the needs they had,” he told TechCrunch. In other words, Salesforce made the platform flexible enough for companies like these to fill in the blanks.
“Vlocity is a perfect example of the incredible innovation occurring in the Salesforce ecosystem and how we are working together to provide customers in all industries the technologies they need to attract and serve customers in smarter ways,” Jujhar Singh, EVP and GM for Salesforce Industries said in a statement.
It’s also telling that of the three strategic investors in this round — New York Life, Accenture and Salesforce Ventures — Salesforce is the biggest investor, according to Schmaier.
The company has 150 customers including investor New York Life, Verizon (which owns this publication), Cigna and the City of New York. It already has 700 employees in 20 countries. With this additional investment, you can expect those numbers to increase.
“What this Series C round allows us to do is to really put the gas on investing in product development, because verticals are all about going deep,” Schmaier said.