Business Canvas, a Korea-based document management SaaS company, closes $2.5M seed round

Business Canvas, a South Korean document management SaaS company behind Typed, announced today it has raised a $2.5 million seed round led by Mirae Asset Venture Investment, with participation from Kakao Ventures and Nextrans Inc.

The seed round will be used for accelerating product development and global launch of open beta for its AI-powered document management platform. The company opened an office in Santa Clara, California this year to spur its global expansion.

People are bombarded with information thanks to advances in technology that opens the doors to a wealth of information, but at the same time, too much information and a huge amount of data at one time leave the users confused and/or unable to make timely decisions.

Business Canvas, founded in July 2020 by CEO Woojin Kim, Brian Shin, Seungmin Lee, Dongjoon Shin and Clint Yoo, is hoping to solve the challenge that every knowledge worker and writer faces: spending more time on research and file organization than the actual content output they need to create.

“In fact, people commit over 30% of their working hours trying to search for that file we once saved in a folder that we just cannot find anymore,” Business Canvas CEO and co-founder Kim said.

Through a network that intelligently tracks and organizes files based on the user’s interactions, Typed brings all the knowledge from different websites and applications into one simple-to-use and quick-to-learn digital workspace.

Strictly keeping its users’ information and their confidential files uninterrupted, Typed does not access the content of users’ documents but utilize them as machine learning data in order to protect their information and data, Kim told TechCrunch. It simply collects users’ action driven data point and publicly available metadata of documents and resources under users’ permission, Kim added.

“Modern document writing has not changed since the 1980s,” Business Canvas co-founder Clint Yoo said. “While we have more knowledge at our fingertips than ever before, we use the same rudimentary methods to organize and make sense of it. We want any writer – from lawyers and entrepreneurs to researchers and students – to focus on creating great content instead of wasting time organizing their source material. We achieved this by making knowledge management more like the way our brain operates.”

Since the launch of the closed beta test in February 2021, Typed saw significant user growth including more than 10,000 users on the waitlist, with 25,000 files uploaded and 350% month-over-month active user growth, the company said in its statement. Typed will be available through a freemium model and is currently accepting beta registrations on its website.

“When we’ve tested our closed beta, our metrics show top traction among students as well as journalists, writers and lawyers, who require heavy research and document work on a frequent basis. We opened up access earlier this month for the waitlists in over 50 countries. These are primarily B2C users,” Kim told TechCrunch. “As for B2B, we are currently in the process of proof-of-concept (POC) for one of the largest conglomerates in South Korea. Smaller teams like startups, boutique law, consulting firms, venture capitals and government institutions also have been adopting Typed as well.”

“While the company is still in its nascent stage in its development, Typed has the potential to fundamentally change how we work individually or as a team. If there is a business to take on our outdated way of writing content, it’s them [Typed],” Shina Chung, Kakao Ventures CEO said.

The global market size for social software and collaboration SaaS is estimated at $4.5 billion in 2021, increasing over 17% year on year, Kim said.

Slack releases Clips video tool, announces 16 Salesforce integrations

Slack has been talking about expanding beyond text-based messaging for some time. Today at Dreamforce, the Salesforce customer conference taking place this week, it announced Clips, a way to leave short video messages that people can watch at their leisure.

Slack CEO Stewart Butterfield sees Clips as a way to communicate with colleagues when a full 30 minutes meeting isn’t really required. Instead, you can let people know what’s going on through a brief video. “Clips are a way to record yourself on your screen. And the idea is that a lot of the meetings shouldn’t require us to be together in real time,” Butterfield said at a Dreamforce press event yesterday.

He added that these video clips provide more value because you can still get the point that would have been delivered in a full meeting without having to actually attend to get access to that information. What’s more, he says the videos create an audit trail of activity for archival purposes.

“It’s easily shareable with people who weren’t in attendance, but [still] get the update. It’s available in the archive, so you can go back and find the answers to questions you have or trace back the roots of a decision,” he said. It’s worth noting that Slack first introduced this idea last October, and announced an early customer beta last March, at which point they hadn’t even named it yet.

He admitted that this may require people to rethink how they work, and depending on the organization that may be harder in some places than others, but he believes that value proposition of freeing up employees to meet less and work more will eventually drive people and organizations to try it and then incorporate into the way that they work.

Clips builds on the Huddles tool released earlier this year, which is a way via audio to have serendipitous water cooler kinds of conversations, again as a way to reduce the need for a full-fledged meeting when people can get together for a few minutes, resolve an issue and get back to work. Butterfield says that Huddles has had the fastest adoption of any new capability since he first launched Slack.

In March, in a Clubhouse interview with SignalFire investor Josh Constine (who is also a former TechCrunch reporter), Butterfield said that the company was also working on a Clubhouse tool for business. The company did not announce any similar tool this week though.

The company also announced 16 integrations with Salesforce that span the entire Salesforce platform. These include the sales-focussed deal room and the customer support incident response called swarms announced earlier this month, as well as new connections to other tools in the Salesforce family of product including Mulesoft and Tableau and industry-specific integrations for banking, life sciences and philanthropy.

In case you had forgotten, Salesforce bought Slack at the end of last year in a mega deal worth almost $28 billion. Today, as part of the CRM giant, the company continues to build on the platform and product roadmap it had in place prior to the acquisition, while building in integrations all across the Salesforce platform.

Blackbird.AI grabs $10M to help brands counter disinformation

New York-based Blackbird.AI has closed a $10 million Series A as it prepares to launched the next version of its disinformation intelligence platform this fall.

The Series A is led by Dorilton Ventures, along with new investors including Generation Ventures, Trousdale Ventures, StartFast Ventures and Richard Clarke, former chief counter-terrorism advisor for the National Security Council. Existing investor NetX also participated.

Blackbird says it’ll be used to scale up to meet demand in new and existing markets, including by expanding its team and spending more on product dev.

The 2017-founded startup sells software as a service targeted at brands and enterprises managing risks related to malicious and manipulative information — touting the notion of defending the “authenticity” of corporate marketing.

It’s applying a range of AI technologies to tackle the challenge of filtering and interpreting emergent narratives from across the Internet to identify disinformation risks targeting its customers. (And, for the record, this Blackbird is no relation to an earlier NLP startup, called Blackbird, which was acquired by Etsy back in 2016.)

Blackbird AI is focused on applying automation technologies to detect malicious/manipulative narratives — so the service aims to surface emerging disinformation threats for its clients, rather than delving into the tricky task of attribution. On that front it’s only looking at what it calls “cohorts” (or “tribes”) of online users — who may be manipulating information collectively, for a shared interest or common goal (talking in terms of groups like antivaxxers or “bitcoin bros”). 

Blackbird CEO and co-founder Wasim Khaled says the team has chalked up five years of R&D and “granular model development” to get the product to where it is now. 

“In terms of technology the way we think about the company today is an AI-driven disinformation and narrative intelligence platform,” he tells TechCrunch. “This is essentially the efforts of five years of very in-depth, ears to the ground research and development that has really spanned people everywhere from the comms industry to national security to enterprise and Fortune 500,  psychologists, journalists.

“We’ve just been non-stop talking to the stakeholders, the people in the trenches — to understand where their problem sets really are. And, from a scientific empirical method, how do you break those down into its discrete parts? Automate pieces of it, empower and enable the individuals that are trying to make decisions out of all of the information disorder that we see happening.”

The first version of Blackbird’s SaaS was released in November 2020 but the startup isn’t disclosing customer numbers as yet. v2 of the platform will be launched this November, per Khaled. 

Also today it’s announcing a partnership with PR firm, Weber Shandwick, to provide support to customers on how to respond to specific malicious messaging that could impact their businesses and which its platform has flagged up as an emerging risk.

Disinformation has of course become a much labelled and discussed feature of online life in recent years, although it’s hardly a new (human) phenomenon. (See, for example, the orchestrated airbourne leaflet propaganda drops used during war to spread unease among enemy combatants and populations). However it’s fair to say that the Internet has supercharged the ability of intentionally bad/bogus content to spread and cause reputational and other types of harms.

Studies show the speed of online travel of ‘fake news’ (as this stuff is sometimes also called) is far greater than truthful information. And there the ad-funded business models of mainstream social media platforms are implicated since their commercial content-sorting algorithms are incentivized to amplify stuff that’s more engaging to eyeballs, which isn’t usually the grey and nuanced truth.

Stock and crypto trading is another growing incentive for spreading disinformation — just look at the recent example of Walmart targeted with a fake press release suggesting the retailer was about to accept litecoin.

All of which makes countering disinformation look like a growing business opportunity.

Earlier this summer, for example, another stealthy startup in this area, ActiveFence, uncloaked to announce a $100M funding round. Others in the space include Primer and Yonder (previously New Knowledge), to name a few.

 

While some other earlier players in the space got acquired by some of the tech giants wrestling with how to clean up their own disinformation-ridden platforms — such as UK-based Fabula AI, which was bought by Twitter in 2019.

Another — Bloomsbury AI — was acquired by Facebook. And the tech giant now routinely tries to put its own spin on its disinformation problem by publishing reports that contain a snapshot of what it dubs “coordinated inauthentic behavior” that it’s found happening on its platforms (although Facebook’s selective transparency often raises more questions than it answers.)

The problems created by bogus online narratives ripple far beyond key host and spreader platforms like Facebook — with the potential to impact scores of companies and organizations, as well as democratic processes.

But while disinformation is a problem that can now scale everywhere online and affect almost anything and anyone, Blackbird is concentrating on selling its counter tech to brands and enterprises — targeting entities with the resources to pay to shrink reputational risks posed by targeted disinformation.

Per Khaled, Blackbird’s product — which consists of an enterprise dashboard and an underlying data processing engine — is not just doing data aggregation, either; the startup is in the business of intelligently structuring the threat data its engine gathers, he says, arguing too that it goes further than some rival offerings that are doing NLP (natural language processing) plus maybe some “light sentiment analysis”, as he puts it.

Although NLP is also key area of focus for Blackbird, along with network analysis — and doing things like looking at the structure of botnets.

But the suggestion is Blackbird goes further than the competition by merit of considering a wider range of factors to help identify threats to the “integrity” of corporate messaging. (Or, at least, that’s its marketing pitch.)

Khaled says the platform focuses on five “signals” to help it deconstruct the flow of online chatter related to a particular client and their interests — which he breaks down thusly: Narratives, networks, cohorts, manipulation and deception. And for each area of focus Blackbird is applying a cluster of AI technologies, according to Khaled.

But while the aim is to leverage the power of automation to tackle the scale of the disinformation challenge that businesses now face, Blackbird isn’t able to do this purely with AI alone; expert human analysis remains a component of the service — and Khaled notes that, for example, it can offer customers (human) disinformation analysts to help them drill further into their disinformation threat landscape.

“What really differentiates our platform is we process all five of these signals in tandem and in near real-time to generate what you can think of almost as a composite risk index that our clients can weigh, based on what might be most important to them, to rank the most important action-oriented information for their organization,” he says.

“Really it’s this tandem processing — quantifying the attack on human perception that we see happening; what we think of as a cyber attack on human perception — how do you understand when someone is trying to shift the public’s perception? About a topic, a person, an idea. Or when we look at corporate risk, more and more, we see when is a group or an organization or a set of accounts trying to drive public scrutiny against a company for a particular topic.

“Sometimes those topics are already in the news but the property that we want our customers or anybody to understand is when is something being driven in a manipulative manner? Because that means there’s an incentive, a motive, or an unnatural set of forces… acting upon the narrative being spread far and fast.”

“We’ve been working on this, and only this, and early on decided to do a purpose-built system to look at this problem. And that’s one of the things that really set us apart,” he also suggests, adding: “There are a handful of companies that are in what is shaping up to be a new space — but often some of them were in some other line of work, like marketing or social and they’ve tried to build some models on top of it.

“For bots — and for all of the signals we talked about — I think the biggest challenge for many organizations if they haven’t completely purpose built from scratch like we have… you end up against certain problems down the road that prevent you from being scalable. Speed becomes one of the biggest issues.

“Some of the largest organizations we’ve talked to could in theory product the signals — some of the signals that I talked about before — but the lift might take them ten to 12 days. Which makes it really unsuited for anything but the most forensic reporting, after things have kinda gone south… What you really need it in is two minutes or two seconds. And that’s where — from day one — we’ve been looking to get.”

As well as brands and enterprises with reputational concerns — such as those whose activity intersects with the ESG space; aka ‘environmental, social and governance’ — Khaled claims investors are also interested in using the tool for decision support, adding: “They want to get the full picture and make sure they’re not being manipulated.”

At present, Blackbird’s analysis focuses on emergent disinformation threats — aka “nowcasting” — but the goal is also to push into disinformation threat predictive — to help prepare clients for information-related manipulation problems before they occur. Albeit there’s no timeframe for launching that component yet.

“In terms of counter measurement/mitigation, today we are by and large a detection platform, starting to bridge into predictive detection as well,” says Khaled, adding: “We don’t take the word predictive lightly. We don’t just throw it around so we’re slowly launching the pieces that really are going to be helpful as predictive.

“Our AI engine trying to tell [customers] where things are headed, rather than just telling them the moment it happens… based on — at least from our platform’s perspective — having ingested billions of posts and events and instances to then pattern match to something similar to that that might happen in the future.”

“A lot of people just plot a path based on timestamps — based on how quickly something is picking up. That’s not prediction for Blackbird,” he also argues. “We’ve seen other organizations call that predictive; we’re not going to call that predictive.”

In the nearer term, Blackbird has some “interesting” counter measurement tech to assist teams in its pipeline, coming in Q1 and Q2 of 2022, Khaled adds.

Alternative financing startup Pipe snaps up Stripe and HubSpot execs, expands to UK

Pipe, a two-year-old startup that aims to be the “Nasdaq for revenue,” announced today it has snagged former Stripe EIC Sid Orlando and HubSpot’s ex-Chief Strategy Officer Brad Coffey to serve on its executive team.

The Miami-based fintech also revealed today its first expansion outside of the United States with its entry into the U.K. market.

It’s been a good year for Pipe. The buzzy startup has raised $300 million in equity financing this year from a slew of investors, such as Shopify, Slack, Okta, HubSpot, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, Chamath Palihapitiya, MaC Ventures, Fin VC, Greenspring Associates and Counterpoint Global (Morgan Stanley), among others.

Since its public launch in June 2020, over 8,000 companies have signed up on the Pipe trading platform. That’s double from the reported “over 4,000” that had signed up at the time of the company’s last raise in May — a $250 million round that valued the company at $2 billion.

Orlando has left her role as editor-in-chief of fintech giant Stripe, where she has worked for over four years, to head up content for Pipe. She was also previously manager of curation and content at Kickstarter. Coffey left HubSpot — where he worked for over 13 years and most recently served as chief strategy officer for nearly 5 — to serve as Pipe’s chief customer officer, where he will be responsible for driving continued growth and expansion of verticals beyond Pipe’s initial launch market of SaaS. Coffey was one of HubSpot’s first employees and witnessed the progression of the company from a startup with $1 million in ARR to a publicly traded company with $1 billion in annual recurring revenue. 

CEO Harry Hurst, Josh Mangel and Zain Allarakhia founded Pipe in September 2019 with the mission of giving SaaS companies a way to get their revenue upfront, by pairing them with investors on a marketplace that pays a discounted rate for the annual value of those contracts. (Pipe describes its buy-side participants as “a vetted group of financial institutions and banks.”)

The goal of the platform is to offer companies with recurring revenue streams access to capital so they don’t dilute their ownership by accepting external capital or get forced to take out loans.

Pipe’s platform has evolved to offer non-dilutive capital to non-SaaS companies as well. In fact, today over 50% of the companies using its platform are non-SaaS companies, compared to 25% in May.

Notably, Coffey led HubSpot’s investment into Pipe last spring and that’s how he first became familiar with the company.

“When I first came across Pipe, I realized they had the opportunity to be a company that not only transforms but also helps a generation of founders get access to the growth capital they’ve never had access to at scale before,” he wrote in an email to TechCrunch. “This was even more obvious when I led HubSpot’s investment in Pipe…where HubSpot provides the software and education, and Pipe can provide the capital. As I got to know the founders and the team through that process, I realized it was an opportunity I didn’t want to miss and had to be a part of.”

Orlando expressed similar sentiments around her decision to join the company.

“Pipe has such an intriguing opportunity to recontour aspects of the funding landscape, providing alternative financing option to founders looking to grow and scale companies on their own terms,” she wrote via email. “Being a part of the early team to build such an impactful product in the market was no doubt a compelling mandate! I’m also struck by Pipe’s team and mission, of pursuing the ambitious vision for leveraging a new asset class with both humility and immense motivation, in service of greater flexibility, agency, equitability and growth opportunities for founders and their teams.”

For Pipe’s Hurst, the new hires signal a new chapter for the company, which continues to grow at a rapid rate.

“There are lots of days on Pipe where tens of millions [of dollars] are traded in a single day. Tens of millions of dollars were being traded every month last time we spoke [in May], he told TechCrunch. “And it’s across a diversified set of customers and different verticals. We are even increasingly helping finance M&As. Growth has been explosive.” 

Tradable annual recurring revenue (ARR) on the Pipe platform is in excess of $2 billion and trending toward $3 billion, according to Hurst.

The company’s expansion into the United Kingdom is significant because while the region has a growing venture ecosystem, capital is not nearly as available to founders as it is in the U.S. Pipe’s availability in the region will give those founders an alternative means of financing, Hurst believes.

“There are a lot of fundamentally healthy companies that don’t have access to financing, period,” he told TechCrunch. “So we believe in the U.K., Pipe will be incredibly impactful and that is evidenced from what we’ve seen already.”

The move also represents a return to the CEO’s roots. 

“I left the U.K. for the United States seven years ago as it provided the best funding environment to build my first technology company, and it is enormously gratifying to bring those same opportunities to the burgeoning ecosystem of technology companies in the U.K.,” he said. “If Pipe existed a decade ago and offered company friendly financing options, I might never have left the U.K. … Now, I’m bringing it home and really excited to be launching in the U.K.” 

With the move, Pipe has opened a microhub in London and 10% of its 55-person team will be based there.

Toast raises IPO price range, providing a Monday bump to fintech valuations

U.S. technology unicorn Toast filed a new S-1 document this morning detailing a higher IPO price range for its shares. The more expensive range indicates that Toast may be worth more in its debut than it initially expected, a bullish sign for technology companies more broadly.

Toast’s rising valuation may provide a boon to two different subsectors of technology: software and fintech. The restaurant-focused Toast sells software on a recurring basis (SaaS) to restaurants while also providing financial technology solutions. And while it is best known as a software company that dabbles in hardware, Boston-based Toast generates the bulk of its aggregate top line from financial services.

Software revenues are valuable thanks to their high margins and recurring structure. Toast’s financial-services revenues, by contrast, are largely transaction-based and sport lower gross margins. The company’s IPO price, then, could help the private markets more fairly price startups offering their own blend of software-and-fintech incomes.

The so-called “vertical SaaS” model, in which startups build software tailored to one particular industry or another, has become a somewhat two-part business effort; many startups today are pursuing both the sale of software along with fintech revenues. Toast’s IPO, then, could operate as a bellwether of sorts for a host of startups.

To see Toast raise its range, therefore, got our eyebrows up. Let’s talk money.

Toast’s new IPO range

From a previous range of $30 to $33, Toast now expects to price its IPO between $34 and $36.

Toast now expects its IPO price to clear its previous upper-end guidance at the low end of its new range. That’s bullish — and indicative of a thus-far receptive market for the company’s equity.

Bzaar bags $4M to enable US retailers to source home, lifestyle products from India

Small businesses in the U.S. now have a new way to source home and lifestyle goods from new manufacturers. Bzaar, a business-to-business cross-border marketplace, is connecting retailers with over 50 export-ready manufacturers in India.

The U.S.-based company announced Monday that it raised $4 million in seed funding, led by Canaan Partners, and including angel investors Flipkart co-founder Binny Bansal, PhonePe founders Sameer Nigam and Rahul Chari, Addition founder Lee Fixel and Helion Ventures co-founder Ashish Gupta.

Nishant Verman and Prasanth Nair co-founded Bzaar in 2020 and consider their company to be like a “fair without borders,” Verman put it. Prior to founding Bzaar, Verman was at Bangalore-based Flipkart until it was acquired by Walmart in 2018. He then was at Canaan Partners in the U.S.

“We think the next 10 years of global trade will be different from the last 100 years,” he added. “That’s why we think this business needs to exist.”

Traditionally, small U.S. buyers did not have feet on the ground in manufacturing hubs, like China, to manage shipments of goods in the same way that large retailers did. Then Alibaba came along in the late 1990s and began acting as a gatekeeper for cross-border purchases, Verman said. U.S. goods imports from China totaled $451.7 billion in 2019, while U.S. goods imports from India in 2019 were $87.4 billion.

Bzaar screenshot. Image Credits: Bzaar

Small buyers could buy home and lifestyle goods, but it was typically through the same sellers, and there was not often a unique selection, nor were goods available handmade or using organic materials, he added.

With Bzaar, small buyers can purchase over 10,000 wholesale goods on its marketplace from other countries like India and Southeast Asia. The company guarantees products arrive within two weeks and manage all of the packaging logistics and buyer protection.

Verman and Nair launched the marketplace in April and had thousands users in three continents purchasing from the platform within six months. Meanwhile, products on Bzaar are up to 50% cheaper than domestic U.S. platforms, while SKU selection is growing doubling every month, Verman said.

The new funding will enable the company to invest in marketing to get in front of buyers and invest on its technology to advance its cataloging feature so that goods pass through customs seamlessly. Wanting to provide new features for its small business customers, Verman also intends to create a credit feature to enable buyers to pay in installments or up to 90 days later.

“We feel this is a once-in-a-lifetime shift in how global trade works,” he added. “You need the right team in place to do this because the problem is quite complex to take products from a small town in Vietnam to Nashville. With our infrastructure in place, the good news is there are already shops and buyers, and we are stitching them together to give buyers a seamless experience.”

 

Inside GitLab’s IPO filing

While the technology and business world worked towards the weekend, developer operations (DevOps) firm GitLab filed to go public. Before we get into our time off, we need to pause, digest the company’s S-1 filing, and come to some early conclusions.

GitLab competes with GitHub, which Microsoft purchased for $7.5 billion back in 2018.

The company is notable for its long-held, remote-first stance, and for being more public with its metrics than most unicorns — for some time, GitLab had a November 18, 2020 IPO target in its public plans, to pick an example. We also knew when it crossed the $100 million recurring revenue threshold.

Considering GitLab’s more recent results, a narrowing operating loss in the last two quarters is good news for the company.

The company’s IPO has therefore been long expected. In its last primary transaction, GitLab raised $286 million at a post-money valuation of $2.75 billion, per Pitchbook data. The same information source also notes that GitLab executed a secondary transaction earlier this year worth $195 million, which gave the company a $6 billion valuation.

Let’s parse GitLab’s growth rate, its final pre-IPO scale, its SaaS metrics, and then ask if we think it can surpass its most recent private-market price. Sound good? Let’s rock.

The GitLab S-1

GitLab intends to list on the Nasdaq under the symbol “GTLB.” Its IPO filing lists a placeholder $100 million raise estimate, though that figure will change when the company sets an initial price range for its shares. Its fiscal year ends January 31, meaning that its quarters are offset from traditional calendar periods by a single month.

Let’s start with the big numbers.

In its fiscal year ended January 2020, GitLab posted revenues of $81.2 million, gross profit of $71.9 million, an operating loss of $128.4 million, and a modestly greater net loss of $130.7 million.

And in the year ended January 31, 2021, GitLab’s revenue rose roughly 87% to $152.2 million from a year earlier. The company’s gross profit rose around 86% to $133.7 million, and operating loss widened nearly 67% to $213.9 million. Its net loss totaled $192.2 million.

This paints a picture of a SaaS company growing quickly at scale, with essentially flat gross margins (88%). Growth has not been inexpensive either — GitLab spent more on sales and marketing than it generated in gross profit in the past two fiscal years.

Zoom looks beyond video conferencing as triple-digit 2020 growth begins to slow

It’s been a heady 12-18 months for Zoom, the decade-old company that experienced monster 2020 growth and more recently, a mega acquisition with the $14.7 billion Five9 deal in July. That addition is part of a broader strategy the company has been undertaking the last couple of years to move beyond its core video conferencing market into adjacencies like phone, meeting management and messaging, among other things. Here’s a closer look at how the plan is unfolding.

As the pandemic took hold in March 2020, everyone from businesses to schools to doctors and and places of worship moved online. As they did, Zoom video conferencing became central to this cultural shift and the revenue began pouring in, ushering in a period of sustained triple-digit growth for the company that only recently abated.

Demand Curve: How to get social proof that grows your startup

When people are uncertain, they look to others for behavioral guidance. This is called social proof, which is a physiological effect that influences your decisions every day, whether you know it or not.

At Demand Curve and through our agency Bell Curve, we’ve helped over 1,000 startups improve their ability to convert cold traffic into repeat customers. We’ve found that effectively using social proof can lead to up to 400% improvement in conversion.

This post shares exactly how to collect and use social proof to help grow your SaaS, e-commerce, or B2B startup.

Surprisingly, we’ve actually seen negative reviews help improve conversion rates. Why? Because they help set customer expectations.

How businesses use social proof

Have you ever stopped to check out a restaurant because it had a large line of people out front? That wasn’t by chance.

It’s common for restaurants to limit the size of their reception area. This forces people to wait outside, and the line signals to people walking past that the restaurant is so good it’s worth waiting for.

But for Internet-based businesses, social proof looks a bit different. Instead of people lining up outside your storefront, you’re going to need to create social proof that resonates with your target customers — they’ll be looking for different clues to signal whether doing business with your company is “normal” or “acceptable” behavior.

Social proof for B2B

People love to compare themselves to others, and this is especially true when it comes to the customers of B2B businesses. If your competitor is able to get a contract with a company that you’ve been nurturing for months, you’d be upset (and want to know how they did it).

Therefore, B2B social proof is most effective when you display the logos of companies you do business with. This signals to people checking out your website that other businesses trust you to deliver on your offer. The more noteworthy or respected the logos on your site, the stronger the influence will be.

Social proof for SaaS

Depending on the type of SaaS product or service you’re selling, you’ll either be selling to an individual or to a business. The strategy remains the same, but the channels will vary slightly.

The most effective way to generate social proof for SaaS products is through positive reviews from trusted sources. For consumer SaaS, that will be through influential bloggers and YouTubers speaking highly of your product. For B2B SaaS, it will be through positive ratings on review sites like G2 or Capterra. Proudly display these testimonials on your site.

Social proof for e-commerce brands

E-commerce brands will typically sell directly to an individual through ads, but because anyone can purchase an ad, you’re going to need to signal trust in other ways. The most common way we see e-commerce brands building social proof is by nurturing an organic social media following on Instagram or TikTok.

This signals to new customers that you’ve gotten the seal of approval from others like them. Having an audience also allows you to showcase user-generated content from your existing customers.

How to collect social proof

There are five avenues startups can tap to collect social proof:

  1. Product reviews
  2. Testimonials
  3. Public relations and earned media
  4. Influencers
  5. Social media and community

Here are a few tactics we’ve used to help startups build social proof.

Defy Partners leads $3M round into sales intelligence platform Aircover

Aircover raised $3 million in seed funding to continue developing its real-time sales intelligence platform.

Defy Partners led the round with participation from Firebolt Ventures, Flex Capital, Ridge Ventures and a group of angel investors.

The company, headquartered in the Bay Area, aims to give sales teams insights relevant to closing the sale as they are meeting with customers. Aircover’s conversational AI software integrates with Zoom and automates parts of the sales process to lead to more effective conversations.

Aircover’s founding team of Andrew Levy, Alex Young and Andrew’s brother David Levy worked together at Apteligent, a company co-founded and led by Andrew Levy, that was sold to VMware in 2017.

Chatting about pain points on the sales process over the years, Levy said it felt like the solution was always training the sales team more. However, by the time everyone was trained, that information would largely be out-of-date.

Instead, they created Aircover to be a software tool on top of video conferencing that performs real-time transcription of the conversation and then analysis to put the right content in front of the sales person at the right time based on customer issues and questions. This means that another sales expert doesn’t need to be pulled in or an additional call scheduled to provide answers to questions.

“We are anticipating that knowledge and parsing it out at key moments to provide more leverage to subject matter experts,” Andrew Levy told TechCrunch. “It’s like a sales assistant coming in to handle any issue.”

He considers Aircover in a similar realm with other sales team solutions, like Chorus.ai, which was recently scooped up by ZoomInfo, and Gong, but sees his company carving out space in real-time meeting experiences. Other tools also record the meetings, but to be reviewed after the call is completed.

“That can’t change the outcome of the sale, which is what we are trying to do,” Levy added.

The new funding will be used for product development. Levy intends to double his small engineering team by the end of the month.

He calls what Aircover is doing a “large interesting problem we are solving that requires some difficult technology because it is real time,” which is why the company was eager to partner with Bob Rosin, partner at Defy Partners, who joins Aircover’s board of directors as part of the investment.

Rosin joined Defy in 2020 after working on the leadership teams of Stripe, LinkedIn and Skype. He said sales and customer teams need tools in the moment, and while some are useful in retrospect, people want them to be live, in front of the customer.

“In the early days, tools helped before and after, but in the moment when they need the most help, we are not seeing many doing it,” Rosin added. “Aircover has come up with the complete solution.”