Penny AI raises $27M Series B
The oversubscribed funding round for the company’s AI-powered sales software is an affirmation that ‘there must be a better way.’
Penny AI, a Squamish-born, Vancouver-based software company developing tools for salespeople, announced a USD $27 million (CAD $33.9 million) Series B round of funding. The investment was led by PSG, a growth equity firm, but also featured participation from Acronym Venture Capital and ScaleUP Ventures.
Why it matters: Consider this another win for the gospel of matrimonial bliss: “happy wife, happy life.” David Abbey, CEO and co-founder of Penny AI, detailed the origin of the company on LinkedIn and wrote of how the startup — an AI-powered virtual assistant to sales consultants that provides contact management, prospecting, and communication solutions on a single platform — was inspired by his wife, Terri Lynn.
She built a network marketing business with Rodan + Fields, a multi-level marketing company and skincare manufacturer, but found it challenging to maintain the growth of that business as her family grew. Exasperated, she remembers presenting David with a not-so-rhetorical statement after the birth of their third child: “There must be a better way.” He got building what would become Penny AI with co-founder and CTO Chris Noble. David, with the company now $27 million richer, must be happy he responded to Terri Lynn so empathically.
A Penny for your thoughts: “We’re witnessing the transition from traditional channels and e-commerce to a people-powered retail revolution where the social seller and influencer now own the audience and customer relationship,” said Abbey in a release. “Since day one, our mission has been to empower the seller with simple-to-use, intelligent, and powerful solutions that help create an incredible experience for their customers.”
PSG’s two cents: “In our view, Penny AI is one of the most comprehensive and effective sales enablement platforms serving direct sales organizations and can solve critical pain points experienced at every level, from sales consultants to corporate teams,” said Tom Reardon, PSG’s managing director. “We look forward to partnering with the Penny AI team as they continue to innovate and grow to support more businesses throughout the global direct sales industry.”
What’s next: Penny AI’s objective is for the investment to accelerate the platform’s expansion into areas that are underserved by existing sales enablement technologies, yet are critical for sellers’ business growth and quality of life. The company outlined three pillars for this growth: Engagement Based Micro-Learning (a learning platform), insights and data visualization, and e-commerce tools to monitor social platforms.
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