It is estimated that over 1 billion people worldwide use Microsoft Excel today, a large proportion of which are small businesses, and 80% rely on spreadsheet software to track their finances. Now we’re announcing a startup called DataRails, which has created a suite of financial planning and analysis tools so users can get more out of their numbers in Excel (or whatever spreadsheet application they use).
This New York-Israeli company has raised $50 million in Series B funding, which it plans to use to add more features to its existing product, including more predictive modeling capabilities; And start building new features for other non-financial spreadsheet teams such as marketing, sales, and HR. DataRail focuses exclusively on small and medium businesses.
“Predictive Analysis, Modeling” [is] The holy grail,” said Didi Gurfinkel, co-founder and CEO of SMB’s Priorities, because it gives them access to functionality that has been available to large companies for a long time, but is usually available to companies as a product. . Which can have a minimum of 50 employees. “When we meet potential clients and ask them about it, we understand what they want and we know that they will become our clients.”
Kumra Capital is leading the round with new sponsors La Maison Partners and Cleartec and previous sponsors Zeev Ventures, Vertex Ventures Israel, Innovation Endeavor, Vintage Investment Partners, ORYZN and Icon Ventures also participating. Gurfinkel, co-founder of the company with Eyal Cohen (CPO), said DataRail would not disclose the valuation, noting only that the figure had tripled since the last $43.5 million round, opened in June, closed in 2021. And that big goal was to be a billion dollar company.
For more context, the company’s revenue has quadrupled over the past year and it has “hundreds” of customers, Gurfinkel said, declining to give exact numbers on any of those metrics.
Before DataRails shifted its focus to financial planning and analysis, as we described earlier, DataRails saw an opportunity to provide the tools to advance Excel, knowing that it was heavily budgeted. and month. -Ultimate reporting, but not quite in its functionality, especially when it comes to calculations to answer specific questions for certain teams (eg finance).
Interestingly, the initial focus was not on SMEs and financial planning, but on organizations of all sizes and providing tools to help them manage financial reporting and auditing for purposes such as taxation and compliance. This functionality is still present on the platform, but DataRail has been completely expanded because “analysis has become more interesting,” as Gurfinkel puts it.
“When a CFO or CFO wakes up in the morning, their motivation is to see something new and understand something they might not have understood the day before. Compliance tools are part of their job but not really part of it. His desire is to be the smartest person in the room. ,
It’s also a very attractive targeting area, Gurfinkel says, valued at $7.8 billion a year in the US market alone. And I might add that it still relies on the same set of data as the original product, which gives the company a more diverse set of products using the same connections and information.
The company, according to Gurfinkel, is not going to reinvent the wheel and create its own spreadsheet software, instead preferring to use the most popular packages today, including not only Excel, but also Google. and more. This may prevent DataRails from relying too heavily on Microsoft on the platform, but also positions it as an attractive startup to be acquired by one of these platform providers as they offer value-added services, engagement and long-term growth. keep looking for stickiness. their user base.
“DataRail is leading the transformation of finance teams by empowering them with deep business intelligence (BI) capabilities in every organization. For the first time, all financial data has been uploaded to the cloud, enabling ongoing flexibility and content sharing,” Sivan Shamri Dahan, managing partner of Kumra Capital, said in a statement. “DataRail has become one of the fastest growing SaaS companies we have ever seen and we look forward to partnering with the company as it continues its excellent market expansion.”