QuotaPath Gains $41M to Demystify Sales Compensation
Sales compensation is notoriously complicated. Trying to calculate a commission, bonus and other variables requires way more effort than is feasible for an account executive hustling to meet their quota.
QuotaPath, a software tool that allows sales teams to automatically track commissions, has helped demystify sales compensation for tens of thousands of users.
The company, which is headquartered in both Austin and Philadelphia, announced Tuesday that it plans to take its software to the next level with a $41 million capital raise.
The Series B round, which comes about nine months after a $21.3 million Series A round, brings the company’s total funding to $67.3 million.
Since its Series A funding, the company has increased its paid users by 335 percent, increased its year-over-year revenue by 480 percent and more than tripled its headcount from about 20 employees to nearly 70.
QuotaPath CEO AJ Bruno previously founded TrendKite, a platform that measures the impact of public relations campaigns. That company was acquired by Cision in 2019 for $225 million.
While scaling his sales team at TrendKite, Bruno said he and his team had trouble adopting the dominant sales compensation software at that time.
Bruno, along with co-founders Eric Heydenberk and Cole Evetts, decided in 2018 to launch their own software to help salespeople better calculate their commissions and track their progress toward reaching their quota.
QuotaPath also allows companies to create team leaderboards that show the progress each team member has made toward reaching their goal.
Finance teams also appreciate the software. Customers have said the software saves an average of 17 hours they would have spent running commission payouts.
QuotaPath also pulls in revenue data that might not be included in Salesforce, HubSpot or another CRM. Many companies have pieces of data that live in a spreadsheet, QuickBooks or NetSuite.
“We pull that data in through integrations and help reconcile it so that we are the source of truth for getting paid correctly as a sales rep,” Bruno said.
QuotaPath already has integrations with HubSpot, Salesforce and other CRMs, and it plans to continue integrating with additional CRMs, ERPs and payroll programs to encapsulate the entire commission process.
QuotaPath also plans to partner with customers on compensation plan strategy and design.
“The idea of ‘right compensation right now,’ which is a point of view that we’ve taken pretty seriously, means that any person that has some level of a variable compensation plan should be able to discover and share other compensation plans,” Bruno said. “We’re really excited to help organizations do that.”
The recent funding round was led by Tribe Capital and joined by existing investors Insight Partners, ATX Venture Partners, Stage 2 Capital and Integr8d Capital.
Sri Pangulur, a partner at Tribe Capital, said in a statement that it was an easy decision to support QuotaPath.
“In today’s rapidly evolving talent markets, streamlining incentives is more important than ever to provide unified visibility across sales teams,” he said. “As the only major player in the space with a product-led-growth sales motion, we believe QuotaPath can become the dominant commission tracking software for companies of all sizes while growing alongside its customer base.”