Since the early 2000s, Battery clearly saw that several trends were transforming the marketing function from being a hard-to-measure-ROI, single channel function into a measurable, targeted, and multi-channel function.
A new category of marketing automation and sales effectiveness software was emerging to meet the CMOs’ demand for data and measurability. The bet: online marketing is nascent and promising enough to drive a major reallocation of dollars.
Battery had tracked Marketo, a pioneer and clear market leader, for years; it was one of the fastest growing SaaS companies it’d seen. When the opportunity to invest arose, the team executed quickly – measured in days not weeks or months – to lead a $50M growth round.
A number of Battery portfolio companies were Marketo customers, and the team had extensive market knowledge from investments in success stories such as Omniture (2006 IPO, then acquired by Adobe), Bazaarvoice (2012 IPO) and ExactTarget (2012 IPO, then acquired by Saleforce.com).
The Battery Difference
Battery’s capital was used to give the company enough ammunition to super-charge its growth through 2012, expand internationally, and evaluate potential M&A opportunities.
Battery joined the Board and used its deep domain expertise and relevant investment experience to provide meaningful guidance in strategic areas such as product direction, M&A and the IPO process.
The team also supported the senior level recruiting effort, with a particular focus on bringing on board seasoned, enterprise-oriented sales executives.
NASDAQ: MKTO ~ May 2013.
Battery bought an additional 500k shares in the IPO, becoming an anchor tenant in the order book and supporting the company’s long term vision to dominate its category.