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Confetti, a team-building platform used by Apple, Google and Microsoft, raises $16 million

There aren’t many startups Apple, Google, Microsoft, Amazon, and Meta can claim to be paying customers, but Confetti can. The list doesn’t stop with the five companies with a combined market capitalization of $10 trillion — the New York-based company said it joins Zoom, Netflix, Stripe, TikTok, Shopify, Adobe, LinkedIn, HubSpot and 30% of cooperate. Fortune 500.

There are approximately 8,000 companies in total. Not bad for an events and team-building startup caught unawares by a pandemic that forced much of its target market to stay behind closed doors, forcing Confetti to rebuild its business model in a matter of weeks. good.

Most companies would be happy that Confetti only has a few multi-trillion-dollar tech giants on its client list, which is why it’s especially noteworthy that a fairly low-profile startup can boast so many big-name logos.

“These companies use confetti dozens, and in some cases hundreds, of times each year for a variety of use cases.” CEO and co-founder Lee Rubin told TechCrunch. “Things like Halloween, Black History Month, seasonal occasions like holiday parties, or goal-driven events like contests, networking, or wellness.”

Today, Confetti claims a revenue run rate of $12 million and expects to grow to $15-20 million by the end of the year. To fuel this growth, the company announced a $16 million Series A funding round led by Israel’s Entrée Capital and IN Ventures.

how it works

Confetti product page example

Confetti product page example Image Source: Confetti

Companies use Confetti to bring team-building experiences to remote teams, with hybrid support.

Want to foster camaraderie through virtual baking or cocktail making? Confetti organizes everything, including liaising with local suppliers and delivering ingredients directly to employees. Prefer some interactive games like quizzes, coloring books or word puzzles? Once again, Confetti has it all sorted – all games are designed in-house from conception to creation.

“The platform takes care of the entire event execution process,” Rubin said.

But that wasn’t always the case – Confetti started out more as a marketplace to connect companies with event providers. However, this still places a huge responsibility on organizers to connect the dots and ensure a memorable event for everyone involved – which is why Confetti is becoming more of an end-to-end platform, Get everything sorted from start to finish.

“Markets can only solve the problem of finding ideas and suppliers, but the entire burden of quality assurance and campaign execution still falls on the client, who must communicate directly with suppliers,” Rubin said. “Additionally, most event providers are not corporate-focused and offer the same content to any group for any purpose. We know our clients need content tailored to the cultural challenges they face in their work environment .”

Rubin also drew an analogy with Netflix, one of its customers, which started out as a content aggregator and later transformed into a content producer in order to have more control over the products it sells.

“[It’s all about] Content is created from the ground up to be consistent across all of our experiences and tailored to building a remote or hybrid work culture,” said Rubin.

Complexity

Rubin said that in a previous job, she was tasked with organizing a team-building event, which proved to be more difficult than she initially thought.

“At first, I thought it would be easy, but then I realized there was a lot involved – coming up with ideas, finding suppliers online, negotiating with them – all with the hope that my team would have a great time,” Rubin explained . “So I asked myself: Is there an easier way to create meaningful events that are easy to plan?”

So Rubin and her CTO co-founder Eyal Hakim launched Confetti in 2017 to take the complexity out of organizing team events and experiences. But that was seven years ago—a lifetime ago in terms of the world’s attitude toward remote work. The pandemic forced nearly every company to embrace remote work, which meant Rubin and Hakeem had to make changes quickly.

When we started, we were only focused on in-person events, helping companies organize events in the office,” Rubin said. “When the pandemic hit, we had to pivot quickly, and after an exhausting two weeks, our prototype was Up, running and ready to sell. I believe this rapid transformation is proof that startups must be able to remain agile and see challenges as opportunities beyond their original boundaries. “

Additionally, the shift appears to be a net benefit for Confetti, as it will be able to tap into a larger market.

“After switching to virtual events, we realized this path was more scalable—you could serve clients around the world without having to rely on a physical presence,” Rubin said. “So, to some extent, we’ve really taken advantage of the constraints that the pandemic has placed on our business.”

Confetti has previously raised approximately $2 million in various seed, angel and venture capital rounds, with backers including Correlation Ventures, Entrepreneurs Roundtable Accelerator and Delivery Hero co-founder and CEO Niklas Ostberg. With $16 million left in the bank, Confetti has ample capital to “shape the future of remote work culture,” which, as the company puts it, will involve building products around a recurring revenue model and supporting multi-team companies.

company account

As Confetti started working with more companies, it began to realize that, especially larger companies, there might be multiple different people from different teams using the Confetti platform. This is a result of the product-led growth strategy it has adopted from the start, and part of the reason why it moved to a dedicated sales team to ensure a more cohesive “corporate” experience, replete with different pricing structures and packages to keep They are back.

“Now that we have thousands of customers, we realize that within each company we often have many different employees who come to us individually and book with us entirely individually,” Rubin said. “In order to provide more value to our customers, we decided to establish for the first time a sales team that will talk to decision-makers at these companies to provide them with Confetti as a company-wide solution for team building strategies. As a result, we have launched our new Company Plan, which provides companies with many additional benefits and incentives compared to our pay-as-you-go plan. “

Confetti: Business Account Example

Confetti: Business Account Example Image Source: Confetti

Today, a big part of Confetti’s product is automation—configured workflows that eliminate many of the manual steps involved in organizing an event or team-building experience. For example, once the company provides all the details required for a reservation, the host is scheduled to move in (and paid upon completion); a virtual event room is set up; the kit is scheduled to be shipped and invitations sent out; and feedback is solicited.

Rubin believes this automation is one of the things that sets it apart from other players. However, it’s worth noting that competitors such as Luna Park; Teambuilding.com; Outback Team Building; and Marco Experiences also have some of the same high-profile clients as Confetti, meaning organizations don’t put all their team-building eggs in the same in the basket.

So despite the competition, Confetti is certainly working to position itself as a stickier proposition for businesses – especially in the enterprise space. While most of its experiences have historically been charged per event based on attendance, Confetti is driving a more sustainable recurring revenue stream.

“We’ve given companies the option to purchase confetti points that can be used to purchase experiences on our platform,” Rubin said. “Additionally, we offer Confetti Points subscriptions (with rewards), allowing planners and companies to seamlessly plan and execute year-round virtual team building strategies. Through 2024, we will increasingly rely on packages and subscriptions, especially When we extend SLG [sales-led growth] sports. “

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