AI-powered lead engagement startup Conversica has closed a staggering $34 million Series B funding round led by Providence Strategic Growth (PSG) with Toba Capital joining the investment. PSG’s Gopi Vaddi and Toba’s Wilder Ramsey will be the partners joining the startup’s board.
Conversica’s founders have developed a technology developed the AI Sales Assistant intent on finding new customers through automated contacting and follow-ups by two-way email conversation.
They claim 16,000 salespeople use their system across 1,000 clients including IBM and Epson. They add that they have generated an immense data set of 180 million emails and texts, though they didn’t give a more exact breakdown. Other customers mentioned by the company include SelectQuote, Coolfront, Cake (Sysco), and Talend.
“We are confident that our unique AI technology will be deployed across a broad spectrum of customer engagement functions to automate and improve many important business conversations,” wrote Conversica CEO Alex Terry in a press statement.
The most astounding figure they claim is a 35 percent response rate, more than one new lead for every three tries through cold emailing. That would be remarkable if it’s true.
Another interesting technological feat might be in their natural language processing (NLP), which PSG’s Vaddi called “powerful.”
“The natural language generation capability crafts each outbound email automatically. The emails are short and text-based (no links or HTML),” CEO Alex Terry communicated to Geektime.
“This boosts deliverability and response rate. The relies from the leads can be quite lengthy and require lots of NLP to understand.”
For now, the service is only in English, but Terry told Geektime that part of the new funds will let them open the technology to other languages.
Conversica maintains headquarters in Forest City, California. Existing investor Kennet Partners plus newcomers Wellington Financial and Recruit Holdings also joined the round.