The Problem with Traditional Methods
When Sahil Khanna and Kevin Hughes, the co-founders of Sagetap, started working at early-stage enterprise software startups, they were surprised to find that their companies were trying to sell their innovative technology through outdated methods like repeated cold emails and calls. Khanna, a former product marketer, and Hughes, a former sales manager, knew these approaches weren’t effective in selling software or helping buyers get the solution they needed.
"We’re seeing that company executives are frustrated," Khanna said. "Their email is destroyed. They have way too many vendors to keep track of. They don’t know who is credible." With nearly 400 enterprise tech unicorns and countless smaller enterprise startups, according to CB Insights, it’s no wonder that buyers feel overwhelmed.
The Solution: Sagetap
Khanna and Hughes decided to try and build a better way. They launched Sagetap to address these issues and provide a more efficient solution for both buyers and sellers. Initially, the platform focused on giving buyers a place to research and explore options. With this strategy, they hit $1 million in ARR (Annual Recurring Revenue) but soon realized that Sagetap should be more than just a research platform.
The AI-Powered Marketplace
Sagetap spent the first year of its life as a research platform, but it soon became apparent that there was a need for something more. They built an AI-powered marketplace on top of the research platform. This marketplace allows potential customers to browse Sagetap’s database of software vendors, which are both vetted and verified to be on the platform.
How It Works
- Buyers can access intel about each vendor, including publicly available information, buyer demographics, and tech endorsements.
- The marketplace uses AI and anonymized sales call data to match buyers to sellers that fit their criteria.
"The industry is huge," Khanna said. "It’s a $1 trillion-business, but it’s broken. There’s a lot of friction between buyers and sellers." They looked at how companies like Uber and Airbnb brought efficiency through marketplaces and thought the same could happen in the enterprise sales industry.
A New Model for Enterprise Software Sales
Sagetap is not the first enterprise software marketplace, but they believe their approach stands out. Unlike other platforms that focus on automating an aspect of the existing model, Sagetap uses AI to analyze its sales calls and provide recommendations.
"We’re doing something materially different," Khanna said.
Fundraising and Growth
Sagetap has been successful in fundraising, with a significant amount raised in recent rounds. They have also seen impressive growth, with a large team working on the platform.
The Future of Enterprise Software Sales
With Sagetap’s innovative approach to enterprise software sales, it will be exciting to see how they continue to grow and evolve. Their focus on efficiency, transparency, and credibility is exactly what the industry needs.
Related Links:
- Sagetap Website: www.sagetap.com
- Sagetap LinkedIn: linkedin.com/company/sagetap
About the Author:
Rebecca Szkutak is a senior reporter at TechCrunch, covering venture capital trends and startups. She previously covered the same beat for Forbes and the Venture Capital Journal.
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