Observe.ai Receives $54m in Series B Financing

Transaction Details

• On September 15, 2020, Observe.ai, a startup developing AI-powered call center software, announced its $54m Series B financing
• Menlo Ventures led the Series B round, with participation from Next47 Ventures and NGP Capital. This week’s announcement raises Observe.ai’s total funding to $88m, following a $26m funding round in December 2019
• This funding will allow Observe.ai to accelerate R&D to add new capabilities in the areas of real-time coaching, omnichannel support and interaction analytics as it looks to continue its growth and expand its go-to-market efforts

Observe.ai’s Solution

• Artificial intelligence (AI) is the future of enterprise software, with the market size of AI software expected to reach $126B by 2025. The rate of proliferation of data in the new digital age is far outpacing human abilities to absorb, interpret and execute complex decisions using that data, outlining that the importance of AI will only continue to grow
• Problems can be solved better and more efficiently with AI, so there is a real application opportunity for Observe.ai within the $300B voice customer service space to address inefficiencies and pain points within existing customer support solutions that aren’t AI-powered
• Many support teams monitor just 1-2% of calls and use 3 or more systems to access conversational insights and to enable agents
• Observe.ai addresses this pain point by using advanced speech, natural language processing (NLP) and deep learning technologies to analyze 100% of customer conversations, while completely automating some stages of the QA and compliance tracking processes

COVID-19 is Accelerating the Demand for AI-Powered Contact Center Messaging

• With the pandemic forcing a global adoption of work-from-home and other remote working models, companies are turning to AI to bridge the resulting service gaps
• Cloud-native communications software, like Zoom, has become critical to businesses trying to maintain their operations during the pandemic
• There is a massive market opportunity, with the voice customer service market being valued at around $300B (pre-pandemic), and companies are taking notice. For instance, Amazon recently launched Contact Lens, an AI-powered contact center messaging product, while Google has continued to expand its Contact Center AI, a virtual customer service software
• This opportunity calls for unique approaches and solutions. 3CLogic, whose Series B was led by TBP, offers a cloud based, “call center-as-a-service” within the ServiceNow ecosystem that fills in the voice functionality gap found within many CRM systems’ omnichannel approaches

True Blue Partners’ Investment in Observe.ai

• True Blue Partners was part of a group of seed stage co-investors in Observe.ai

TBP was NOT an advisor to this transaction.