Toplyne, a California-based business that provides a platform to assist product-led businesses improve their conversion rates, has today announced that it has raised $15 million in a series A round of funding.
Over the past decade, software-as-a-service (SaaS) has evolved into a significant market segment, expanding from $31 billion in 2015 to $152 billion in 2021. However, there are still many other, lesser-known individuals that are solving key challenges across the industry through software. They are increasing VC funding and increasing their product on a constant basis.
However, even with all of the growth, one major problem continues to halt most SaaS enterprises'' conversion. Businesses can draw users through their freemium offerings, but they are struggling to convert them into paying or premium customers. Despite this, most hyper-growth product-led businesses are seeing conversion rates below 1-2%. This is far from optimal and has a significant impact on revenue growth.
Toplyne identifies users to target
Toplyne was founded in 2021 and has developed a platform that identifies which users are most likely to convert and shares that information directly with sales teams so they may act immediately.
The offering comes as a significant upgrade to the current conversion methods, where internal teams make random calls to accounts or try to develop their own software to identify those with the greatest conversion intentions. Both techniques take a lot of time and effort, especially the latter where data engineers and scientists must work together to extract and transform product usage data, iterate on models, and then sync insights from them with CRMs.
Where work is done, one simple technique to visualize Toplyne is that we are in between your data (product usage, billing, support, etc.) and end applications. Ruchin Kulkarni, the founder of Venturebeat, has productized and generalized what lies between the two ends of the stack.
The solution connects directly to an analytics infrastructure (Snowflake, Amplitude, etc.) and analyzes user signals such as product usage and paywall interactions to classify users into three groups of high intent users, low intent users, and fence-sitters. Then, the information about these is then sent to sales teams CRMs (Salesforce, Outreach, etc.), allowing them to convert those leads through the appropriate intervention at the right time. They may also use personalized calls with discounts for fence-sitters, and
While Kulkarni previously served with Sequoia India, he did not disclose the exact growth figures, but noted that the company has partnered with key SaaS players in recent months, including Canva, InVideo, Grafana, BrowserStack, and GatherTown.
Customers like InVideo are using Toplyne to sync their most important leads into their CRM systems, from where the sales team drives conversions. According to the study, Toplyne has seen a 1.8 increase in sales conversion rates since he went live.
PLG CRMs that show user journeys through activity charts (unter other things) do not provide insights to this level to assist product-driven organizations aggressively identify potential customers and sell to them. In fact, the company claims that its intent methods can identify 50% or more conversions by limiting the search to only the top 1-2% of the highest intent users.
Toplyne will focus on expanding its team and delivering on the product roadmap in the next three months. This includes the introduction of a fully self-service product to onboard waitlisted SaaS players, and scaling key business functions such as sales, growth, product marketing, and customer success.
According to Fortune Business Insights, the global SaaS market will exceed $700 billion by 2028. Companies may expect to see further development of these tools in the next years.