Automated sales commission platform Spiff gets $46 million
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Spiff, an automated commission platform for businesses, today announced that it has raised $46 million in a Series B funding round from Lightspeed Ventures Partners, Salesforce Ventures, Stripes and Norwest Venture Partners. .
Founded in Sandy, Utah in 2017, Spiff is one of many platforms designed to automate sales commission payments, a greater challenge for businesses that must deal with complexities such as geographic distribution and multiple commission plan structures, Spiff said.
How it works
Companies connect Spiff to their customer relationship management (CRM) platform, business intelligence (BI) tools, or accounting and payment systems to automatically glean real-time sales data. While its prebuilt integrations include Salesforce, Looker, Snowflake, Quickbooks, and Stripe, the company also follows an API-centric philosophy that opens things up to almost any data conduit.
It should be noted that Spiff also recently announced a tie-up with Netsuite, Oracle’s suite of enterprise management tools covering enterprise resource planning (ERP), CRM, and more.
“If you think about commissions, they sit at the center of CRM, ERP, HRIS, BI and Data Lake systems,” Spiff founder and CEO Jeron Paul told VentureBeat. “These are not ‘Excel oriented’ systems. They are object-oriented systems. Spiff is therefore perfectly positioned to connect to these systems [and] Transform data using Excel-like syntax to perform complex mathematical and logical modeling and automate processes.
With Spiff’s no-code commission designer dashboard, companies can combine rules, variables, and conditions for commission payments so that when an employee meets certain pre-defined criteria, they automatically receive their contribution. This can support any number of commission structures, including trade splits, ramps, and team bundling.
Managers can assign or unassign reps to commission plans, with Spiff automatically adjusting the commission to be paid based on the dates they were assigned to a deal.
The Salesforce Factor
The addition of Salesforce to Spiff’s investor list is particularly noteworthy, given that nearly 70% of Spiff’s customers use Salesforce as their CRM. Along with today’s funding, Spiff also announced the launch of a new Spiff iframe for Salesforce.com, allowing customers to view their commissions and calculations without leaving the CRM.
Spiff has now raised approximately $60 million since its inception, and while its latest Series B has ushered in some notable venture capital backers, it has also attracted individual investors, including UiPath CEO Daniel Dines, and Alteryx CEO Mark Anderson.
With its latest cash injection, Paul said the company is prioritizing items on the roadmap that “restore confidence in incentive compensation,” including adding new sales performance management features and making its product basic design “more powerful and easier to use”. Other investments will include machine learning, sales forecasting and scheduling integrations, deeper integrations with payroll, and more.
The increase also comes shortly after rival CaptivateIQ also raised $46 million, suggesting there is strong demand for the technology to help companies manage their commissions.
“As far as what’s driving investor interest, it’s a combination of factors – it’s a big market that’s in desperate need of innovation with a lot of old-school legacy vendors,” Paul said. “Commissions make up 10% of a typical company’s budget, and investing in sales reps is still one of the best ways to increase revenue. So there’s no doubt that sales commissions are a critical area to get it right. So many people in finance are tearing their hair out with manual intensive, error-prone processes that end up demotivating sales teams.
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