Companies are increasingly looking at product-driven growth, where the product drives market expansion. If you give people what they want, they will spend more money, so the theory goes, but how do you actually measure progress?
That’s where an early-stage startup called loops comes in. It announced a $14 million seed, a hefty sum by today’s standards, to help companies look at different data sources and answer specific questions about how they’re performing.
Company co-founder and CEO Tom Laufer says he ran a similar operation at Google before starting his company, and he saw smaller companies without Google’s resources struggle to pull the data together to understand how well they did against their product goals.
“This much [product-led growth] Enterprises today struggle to make data-driven decisions because of the deluge of data [and struggle to turn that into] real insights and real opportunities,” Laufer told londonbusinessblog.com.
He says this is not a dashboard with up and down lines. Instead, it’s a solution that offers very specific suggestions designed to answer individual questions and improve things like conversion, retention, engagement, and monetization.
Loops connects to various data sources and uses machine learning models to provide answers to the product team on how to improve their metrics based on the data Loops finds – and most importantly, they can do it without a team of data scientists to pull the data together.
And this was a big reason that Ariel Tseitlin, a partner at lead investor Scale Venture Partners, was attracted to the company.
“Loops gives you the ability to essentially package those insights in a way that is repeatable and automated without really having to incur the cost of [building a data science team]. So there’s a really powerful cost-cutting element there as well,” he said.
The startup currently has about 20 people with plans to add more with the new funding, which recently closed. As he grows his workforce, Laufer says building a diverse business is a key factor for him. “We’re literally doubling down on diversity, including minorities, and not just because it’s the right thing to do, it protects the future of the company through better brainstorming and better collaboration,” he said.
Today’s round was led by Scale Venture Partners with participation from Cardumen Capital and a host of industry angels.