Enable, a startup developing a cloud-based software tool for business-to-business rebate management, announced Wednesday a $45 million Series B funding round.
The round is led by Norwest Venture Partners with participation from existing investors Menlo Ventures and Sierra Ventures, and a group of angel investors. Including the new round, the company has raised a total of $62 million, which includes a $13 million Series A raised in 2020.
The company, which started in the U.K. and moved to San Francisco in 2020, was co-founded by Andrew Butt and Denys Shortt in 2015 but launched fully in 2016. Its technology automates how distributors and manufacturers create, execute and track rebates. These types of trading programs are a common industry practice and are relied on by distributors as a way to turn a profit.
Since raising its Series A last year, Butt, chief executive officer, moved to the Bay Area, grew its North American operations to 60 people, tripled revenue and more than tripled its customer base, he told TechCrunch. The new funding will be used for product innovation and building sales and go-to-market teams.
“The Series A was proving traction in the U.S. and Canada and gave us the ability to hire a U.S. leadership team,” he added. “When we saw that momentum, the market size was large and the opportunity was now getting bigger and bigger, we started scaling up the business.”
As customer needs changed and incentives were growing in terms of revenue and profitability, Enable saw that they were more critical to manage; the incentives needed to be more dynamic and easy to make targeted and personalized. In a sense, incentives have “gone from being blunt instruments to very sharp in size and volume,” Butt said.
Reaching the year over year revenue doubling was a milestone for the company, and his immediate next steps are to get a fully ramped team so Enable can continue on that growth trajectory. The market for incentives is big, but “there is no credible competition,” so the company is also working to build that distribution and sales team now, he added.
It was also over the past year that Butt met Sean Jacobsohn, partner at Norwest Venture Partners, who, as part of the investment, joined Enable’s board of directors.
Jacobsohn had noticed Enable and asked for an introduction to the company when it hired Jerry Brooner as its president of global field operations. Jacobsohn was tracking Brooner’s next moves after leaving Scout, a Workday company, and the hire got his attention.
Enable checks all of the boxes Jacobsohn said he looks for in a company: strong CEO, a good team and good customer feedback — many of them were dissatisfied with the legacy software, he said.
“I also love companies going after a big market where there is no credible competition,” Jacobsohn added. “There is a lot of greenfield space here. What’s great about a player like that is they can come in, create a category and be the new generation cloud player. This isn’t something someone can wake up and start. You need deep domain expertise.”