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ChurnZero Raises $25 Million in JMI Equity-Led Series B Funding
New resources to help market-leading Customer Success platform expand its ecosystem, team, and product development capabilities.
ChurnZero, the highest-rated and fastest-growing Customer Success platform for subscription businesses, today announced that it has received $25 million in Series B funding led by JMI Equity, a growth equity firm focused on investing in leading software companies. Returning investors in the round include Baird Capital and Grotech Ventures. To date, this investment brings the total funding that ChurnZero has raised to $35 million.
The investment will be used to support ChurnZero’s mission to drive Customer Success throughout subscription businesses, helping them to drive adoption, expand accounts, and fight churn. With the added resources from JMI and existing investors, the ChurnZero team will continue to invest in growing the Customer Success ecosystem, expanding the team, fueling go-to-market programs, and accelerating and deepening product development in the award-winning ChurnZero platform.
“The last 12 months have brought extraordinary challenges for all of us, but we have seen firsthand from our customers the inextricable link between Customer Success and the resilience of subscription businesses,” said You Mon Tsang, Co-founder and CEO of ChurnZero. “We expect Customer Success to gain even more strength as a department as a result of this increased attention on the customer and revenue retention, and we are steadfast in providing our customers with a strong return on investment.”
The growth of Customer Success software has been driven by the accelerating adoption of Customer Success teams, the prevalence of subscription-based revenue models, and the increased focus on retention and upsell as key business metrics. As the system of record for Customer Success, ChurnZero integrates customer account data from multiple sources and enables Customer Success teams to be proactive in managing customer relationships and identifying renewal issues or upsell opportunities.
“At Mailchimp, we pride ourselves on making innovative products that empower businesses to gain and retain customers,” said Erica Swint-Williams, Senior Manager, Customer Success at Mailchimp. “When looking for a provider to partner with us on our Customer Success efforts, we expected the same level of dedication in both product and service – we have found that in ChurnZero. Being able to have a single source of truth for our Customer Success Managers is immensely valuable and has enabled them to be proactive and more productive for the good of our subscribers.”
“ChurnZero has made impressive strides to become a leading provider of Customer Success software,” said Larry Contrella, General Partner at JMI Equity, who has joined ChurnZero’s board of directors in connection with the investment. “As growth software investors, we have seen firsthand the rise of Customer Success as a function, and the power of software to help Customer Success teams better engage and retain their end customers. We are excited to partner with You Mon and his team to continue to enhance the ChurnZero platform.”
ChurnZero helps subscription businesses fight customer churn. Its software solutions allow businesses to understand how their customers use their product, asses their health and their likelihood to renew, and give businesses the means to personalize the customer experience through timely and relevant touchpoints. ChurnZero is headquartered in Washington, D.C. and is backed by leading investment firms such as JMI Equity, Baird Capital, Grotech Ventures and Middleland Capital. For more information visit https://churnzero.com/.
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software companies. Founded in 1992, JMI has invested in over 155 businesses in its target markets, successfully completed over 105 exits and raised more than $6 billion of committed capital. JMI partners with exceptional management teams to help build their companies into industry leaders. For more information visit https://jmi.com/.
About Baird Capital
Baird Capital makes venture capital, growth equity and private equity investments in strategically targeted sectors around the world. Having invested in more than 320 companies over its history, Baird Capital partners with entrepreneurs and, leveraging its executive networks, strives to build exceptional companies. Baird Capital provides operational support to its portfolio companies through teams on the ground in the United States, Europe and Asia, a proactive portfolio operations team and a deep network of relationships, which together strive to deliver enhanced shareholder value. Baird Capital is the direct private investment arm of Robert W. Baird & Co. Incorporated. For more information, please visit https://bairdcapital.com/.
About Grotech Ventures
Founded in 1984, Grotech seeks innovative, early-stage investments across the IT landscape and continues to invest and add value throughout the life cycle of each portfolio company. The firm has a strong combination of financial backing, industry relationships and deep domain and operational expertise to accelerate growth. With more than $1.0 billion in committed capital, Grotech supports early-stage companies through investments starting at $500,000. For more information, visit https://www.grotech.com/.