The world of enterprise software sales has long been plagued by inefficiencies and frustrations. Founders Sahil Khanna and Kevin Hughes knew this all too well when they started working at early-stage enterprise software startups. They were shocked to find that companies were still relying on outdated methods like repeated cold emails and calls to sell their innovative tech. In response, they decided to create a better way.
The Problem with Traditional Sales Methods
Company executives are frustrated, their email is destroyed,’ Khanna, Sagetap’s CEO, told TechCrunch. In their own words, there are way too many vendors to keep track of. They don’t know who is credible.
For context, the enterprise tech space is vast and growing, with nearly 400 enterprise tech unicorns alone and countless other smaller startups (CB Insights). This makes it increasingly difficult for buyers to navigate and find the right solutions.
The Birth of Sagetap
Khanna and Hughes launched Sagetap to address these issues. Initially, the platform focused on providing a place for buyers to research and explore options. The first year was successful, with Sagetap hitting $1 million in ARR (Annual Recurring Revenue). However, they soon realized that Sagetap should be more than just a research platform.
From Research to AI-Powered Marketplace
Sagetap decided to build an AI-powered marketplace on top of the research platform. This allows potential customers to browse a vetted database of software vendors and access valuable intel, including publicly available information, buyer demographics, and tech endorsements. The marketplace uses AI and anonymized sales call data to match buyers with sellers that fit their specific needs.
The Vision Behind Sagetap
This industry is huge, it’s a $1 trillion-business,’ Khanna said. It’s broken. Buyers and sellers, there is a lot of friction.
Inspired by the success of marketplaces like Uber and Airbnb, Khanna and Hughes believe that Sagetap can bring efficiency to the enterprise sales industry.
Revenue Streams
Sagetap generates revenue through vendor subscriptions and meetings booked on the platform. The company has announced a $6.8 million seed round led by NFX with participation from VCs like Uncorrelated Ventures and Emergent Ventures.
The Role of Customers in Funding Sagetap
We weren’t initially going out for funding,’ Khanna said. This round was primarily driven by our existing customers, who saw the value in what we’re building.
This approach highlights the importance of customer relationships and validation in the startup ecosystem.
Growing Demand for AI-Powered Solutions
The increasing adoption of AI-powered solutions is driving demand for more efficient and effective sales processes. Sagetap is well-positioned to capitalize on this trend, with its innovative platform addressing the needs of both buyers and sellers.
Conclusion
Sagetap’s approach is a breath of fresh air in an industry plagued by inefficiencies. By leveraging AI and providing valuable insights, the company has created a more streamlined sales process that benefits both parties. As the demand for AI-powered solutions continues to grow, Sagetap is poised to be at the forefront of this revolution.
