Born Out Of A Cisco Consulting Gig, Predictive Sales Tool 6Sense Raises $12M

6Sense Raises $12M for Predictive Sales Intelligence

Introduction to Predictive Sales Intelligence

The article discusses the growing impact of big data analytics on business, particularly in the realm of predictive intelligence. This field focuses on using data to forecast future actions and trends. A key player emerging in this space is 6Sense, a startup that originated from a consulting project at Cisco.

6Sense's Funding and Core Offering

6Sense has successfully raised $12 million in Series A funding, led by Battery Ventures and Venrock, with participation from Silicon Valley Bank. The company claims its platform can identify potential business customers with an impressive 80% accuracy. This funding will likely support its growth and market expansion.

The Problem: The "Hidden" Buyer

A significant challenge in B2B sales and marketing is that a large portion of purchasing decisions (estimated between 60% and 90%) are made before a potential customer actively engages with a company's sales or marketing systems. Traditional methods often focus on leads that have already shown interest (the "bottom of the funnel"), missing a vast opportunity to capture buyers earlier in their journey.

6Sense's Unique Approach

Amanda Kahlow, CEO and founder of 6Sense, highlights several key differentiators for her company:

Early Buyer Identification: Unlike services that focus on the later stages of the sales cycle, 6Sense aims to identify "net-new customers ready to buy" and prioritize existing prospects much earlier. This targets the crucial 90% of the market that makes decisions before actively reaching out.
Rich Data Insights: 6Sense provides more than just lead scores. It offers detailed information about what potential customers want and where they are in their buying cycle. This is achieved by combining data from thousands of B2B publisher sites, directories, and communities with the customer's own activity data and descriptive attributes.
Addressing the "In-Market" Need: While descriptive data (like company size or industry) is important, it doesn't indicate if a buyer is ready to purchase now. 6Sense's approach combines descriptive data with behavioral signals to determine current market readiness. For example, knowing someone needs routers because they're moving offices is different from knowing they are actively researching and comparing router solutions for immediate purchase.

Market Landscape and Competition

The predictive intelligence market, especially for sales, is becoming increasingly competitive. Other notable startups in this space include Clari and InsideSales.com, the latter having recently raised $100 million at a $1 billion valuation. These companies also utilize machine learning algorithms and behavioral data, making differentiation crucial.

Origin Story: From Cisco Consulting to Scalable Product

The genesis of 6Sense is a compelling story. Kahlow was consulting for Cisco to revamp their sales process for networking products. During a presentation, a Cisco executive pointed out that her insights could predict customer purchases before the customers themselves were fully aware. This realization sparked the idea for a scalable, product-based solution rather than a modest services business. Cisco is now a customer but not an investor.

Customer Traction and Future Potential

6Sense already boasts a strong customer base, including major IT companies like NetApp, Xactly, Pure Storage, Blue Jeans, and CBS Interactive, in addition to Cisco. One customer reportedly closed $300 million in new business attributed to 6Sense's predictions.

While the current customer list is IT-heavy, Kahlow believes the platform's applicability extends to various verticals. The company plans to use its Series A funding to expand into sectors such as hospitality, manufacturing, healthcare, and financial services, targeting businesses with "high considered purchases."

Conclusion

6Sense represents a significant advancement in using AI and data analytics to optimize B2B sales and marketing. By focusing on identifying and understanding potential buyers early in their decision-making process, the company offers a powerful tool for businesses seeking to gain a competitive edge in a data-driven world.