Bainbridge Growtha Boston-based software startup that provides data, analytics, and financial modeling for ecommerce businesses has inked $4 million in seed funding.
Ben Tregoe and Austin Gardner-Smith started the company in January 2021 after meeting at Nanigans, an advertising automation software company.
Tregoe, CEO, told londonbusinessblog.com that while helping brands like Casper, Peloton and Warby Parker understand how to create more effective Facebook ads, they realized they were building big data systems and modeling revenue per customer. That got them thinking about what else they could do with the data.
“We started talking to a lot of founders and kept hearing the same thing – everyone was struggling with financial planning, forecasting and trying to figure out what their true lifetime value from customers was,” he added.
Bainbridge started with a financial model and added analytics to help the financial model make better assumptions and then a data system. The company collects data from places like Shopify, QuickBooks, and Google Analytics and gives each customer their own data warehouse, backed by managed data pipelines.
The company has also built a dashboard so customers such as Geology, Branch Furniture, and Mad Rabbit can track progress, show planned value, and then rate in real time.
Bainbridge targets customers who sell between $5 million and $100 million annually. and if e-commerce sales in the US continuing to climb toward $1 trillion in 2023, knowing where a brand stands will be even more important, Tregoe said.
“We help companies see their gross margins, their contribution margins and variable costs,” he said. “Now they can see why their fulfillment costs were so outrageous. For one customer, we saw that they were overcharged by their shipping partner. With that solution, they got $350,000 back in a quarter.”
The new investment closed on August 31 and was led by Las Olas and Vinyl VC with participation from Bling Capital and Industry Ventures. The company has now raised a total of $6.4 million, including an unannounced pre-seed round in March 2021 led by Bling Capital and Industry Ventures.
“The customer reference calls were the best I’d ever heard, which is why I wrote my biggest check yet,” said TJ Mahony, Founder and Partner at Vinyl VC, in a statement.
Tregoe says the company has six employees and plans to use the new funding to add to that in engineering, sales and marketing, and customer success.
And while Bainbridge is still in its early stages, he said the company has 18 customers and is “well on its way to $1 million in annual recurring revenue, which would be 10x year over year.”