The Numbers Don’t Lie
One of our competitors (who shall remain unnamed) recently announced that they raised $25M. This on top of $32M raised earlier. They have around 700 customers now.
Let’s assume for a moment that they actually need this latest investment. Then, it would seem they needed $32M of investment to get to 700 customers, which works out to over $45,000 per customer.
Starting much later than they did, we have over 160 customers and it took us just $2.5M to get here. This works out to a little over $1,500 per customer. Comparable functionality, since we have competitive wins against them.
So if you are a customer of a marketing automation vendor that has raised far too much money, you can bet that you are overpaying. After all, your vendor’s investors need a big return on their expensive investment.