Swedish startup Salesbox brings in $300.000 from Rite Ventures. The CRM-company is aiming for a turnover of $1 billion within five years.
According to documents from the Swedish Companies Registration Office (SCRO) investment company Rite Ventures takes an owner share in Salesbox of just above 11 percent, which means that the company is valued at $2.6 million.
Salesbox co-founder Andreas Lalangas says that the company, like most startups, has used most of the capital for further product development.
“If you compare the service today with how it looked beginning of this year, it’s like an entirely new product. We’ve also invested in exploring various marketing strategies and established our sales processes”, he says.
The company has built a customer relationship management system, also referred to as CRM-system, which helps the sales people to keep track of who they have contacted. One of the purposes with a CRM-system is to avoid several employees working the same customer.
Salesbox CRM-system is, at least according to Andreas Lalangas, one of a kind.
“If you look at how other CRM-companies work, they’re really a product for the company management. It becomes a surveillance and control tool to track sales people, even though 95 percent of those using a CRM are the sales people themselves. The sales staff usually sees no point in using the CRM beyond being ordered to do so by their boss. We want to change this with Salesbox”, he says.
“Using other CRM’s is like driving a car by looking in the rear-view mirror.”
To create an extra incentive for sales staff, the service has a built in coaching function. It learns from the sales person’s behavior and can send reminders and suggestions of what the next action in the sales process should be.
The app also serves as a digital notepad.
“When the service gives something back to the salesperson there is a much greater chance of them entering data in the CRM. In other systems, the salespeople add data from their meetings maybe once in a week and at that point the information might not even be complete. Many companies are hence sat with unreliable and old information regarding their sales. It’s like driving a car by just looking in the rear-view mirror” Andreas Lalangas says.
Another difference that Andreas Lalangas mentions is that the service has been developed for mobile use first and foremost.
“We have a browser version as well, but we’re a mobile first company. As a sales person you spend most of your day outside the office, and it has to be easy to update in the CRM from your phone or tablet”, he says.
The company has received venture capital from Rite Ventures now, who are somewhat of a reclusive within the Swedish venture capital scene. The investment firm, which was founded by financiers Peter Lindell and Christoffer Häggblom, has however invested in a number of successful internet companies – among them Mathem, gaming company Paradox Interactive and finetech company Modular Finance.
Salesbox was founded in 2014 and turned over a meager $5.000 last year. Now the company has 15.000 clients in 180 countries. The business model has also changed from a so called freemium service, where you pay for premium features but the core service is free of charge, to a pre-pay service.
“Our next milestone is to reach break-even, which we achieve in the beginning of 2016. Our long term goal is to get 4 million customers and a $1 billion turnover”, Andreas Lalangas says.