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

Confetti, a team-building platform used by Apple, Google and Microsoft, raises $16M post thumbnail image

Not many startups can declare Apple, Google, Microsoft, Amazon, and Meta as paying clients, however Confetti can. And the checklist doesn’t cease at a quintet with a collective market worth of $10 trillion — the New York-based firm says it really works with Zoom, Netflix, Stripe, TikTok, Shopify, Adobe, LinkedIn, HubSpot, and 30% of the Fortune 500.

That’s some 8,000 firms in complete. Not unhealthy going for an occasions and team-building startup blindsided by a pandemic that pushed a lot of its goal market to hunker down behind closed doorways, forcing Confetti to rebuild its enterprise mannequin in a matter of weeks.

Most firms can be glad to have simply a few the trillion-dollar tech giants on Confetti’s buyer checklist, which is why it’s notably notable {that a} pretty under-the-radar startup can lay declare to so many big-name logos.

“These firms use Confetti dozens — some even a whole lot — of instances a 12 months, for an unlimited array of use-cases,” CEO and co-founder Lee Rubin instructed TechCrunch. “Corresponding to seasonal events like Halloween, Black Historical past Month, vacation events, or goal-driven actions like competition-building, communication or wellness.”

In the present day, Confetti claims a income run-rate of $12 million, which it initiatives will enhance to $15-$20 million by year-end — and to energy this progress, the corporate has introduced a $16 million Collection A spherical of funding led by Israel’s Entrée Capital & IN Ventures.

The way it works

Example Confetti product page

Instance Confetti product web page. Picture Credit: Confetti

Firms use Confetti to convey team-building experiences to their distant groups, with assist for hybrid too.

Need to foster camaraderie by way of digital baking or cocktail-making? Confetti kinds all of it out, together with liaising with native suppliers and transport components direct to workers. Fancy some interactive games comparable to quizzes, Pictionary, or charades? Once more, Confetti kinds all of it out — all video games are designed in-house, from ideation by means of to creation.

“The platform takes care of all the occasion execution course of,” Rubin mentioned.

This wasn’t at all times the case although — Confetti began out extra as a market connecting firms with occasion suppliers. Nevertheless, that also bestowed an enormous duty on the organizer to hitch the dots and guarantee a memorable occasion for all involved — because of this Confetti segued into extra of an end-to-end platform that kinds all of it out from begin to end.

“A market solely solves the problem of discovering concepts and distributors to doubtlessly present them, however all the burden of high quality assurance, and occasion execution, nonetheless falls on the client having to speak straight with the seller,” Rubin mentioned. “Moreover, most occasion suppliers usually are not company centered, they provide the identical content material to any group for any objective. We perceive that our clients want content material that’s tailor-made to the cultural challenges they face in a piece atmosphere.”

Rubin additionally attracts analogies with how Netflix — certainly one of its clients — began out as a content material aggregator that transitioned right into a content material producer to offer it higher management of the product it sells.

“[It’s all about] creating the content material from scratch, in a constant approach throughout all our experiences that’s tailor-made to constructing a distant or hybrid work tradition,” Rubin mentioned.

Complexities

In a previous job, Rubin says she was tasked with organizing a team-building occasion, an endeavor that proved harder than she initially envisaged.

“At first, I assumed it will be simple, however then I noticed what number of issues go into it — arising with concepts, in search of distributors on-line, negotiating with them — all with fingers-crossed that my staff may have a very good time,” Rubin defined. “So I requested myself: is there a better approach to create significant occasions which can be easy to plan?”

And so in 2017, Rubin and her CTO co-founder Eyal Hakim launched Confetti, designed to take away the complexities of organizing staff occasions and experiences. However that was seven years in the past — a lifetime away when it comes to the place the world was at with attitudes towards remote-working. The pandemic compelled just about each firm to embrace distant work, which means that Rubin and Hakim needed to change issues up fairly rapidly.

Once we began, we have been solely centered on in-person occasions, serving to firms arrange occasions within the workplace,” Rubin mentioned. “When the pandemic hit, we rapidly needed to pivot, and after two exhausting weeks, our prototype was already up, working and able to promote. I consider this fast shift is a testomony to how startups should be capable of keep agile and have a look at challenges as alternatives to develop past the unique boundaries.”

Furthermore, the pivot appears to have been a internet profit for Confetti, when it comes to enabling it to faucet a a lot bigger market.

“After switching to digital occasions, we realized that this path was far more scalable — you’ll be able to serve clients all over the world with out counting on a bodily presence,” Rubin mentioned. “So in a approach, we actually took probably the most out of the constraints the pandemic imposed on our enterprise.”

Before now, Confetti had raised round $2 million throughout numerous seed, angel, and enterprise rounds, with backers together with Correlation Ventures, Entrepreneurs Roundtable Accelerator, and Supply Hero co-founder and CEO Niklas Ostberg. With one other $16 million within the financial institution, Confetti is well-financed to “form the way forward for distant work tradition,” as the corporate places it, and this may contain constructing merchandise round a recurring income mannequin with assist for multi-team firms.

Firm account

As Confetti started working with extra firms, it got here to comprehend that — with greater firms specifically — there could also be a number of totally different individuals from totally different groups utilizing the Confetti platform. This was a consequence of the product-led progress technique it had used from the get-go, which is partly why it has turned to devoted gross sales groups to make sure a extra cohesive “firm” expertise, replete with totally different pricing buildings and packages to maintain them coming again.

“Now that we now have 1000’s of consumers, we realized that inside every firm we frequently have many alternative workers who discovered us individually and are reserving from us fully individually,” Rubin mentioned. “To supply our clients much more worth, we determined to determine a gross sales staff for the primary time who would converse to decision-makers at these firms to supply them Confetti as a company-wide resolution for his or her team-building technique. With this, we launched our new ‘firm plan,’ which, in comparison with our pay-as-you-go plan, gives firms many extra advantages and incentives.”

Confetti: Company account example

Confetti: Firm account instance. Picture Credit: Confetti

In the present day, an enormous a part of Confetti’s providing is automation — workflows configured to take away most of the handbook steps concerned in organizing an occasion or team-building expertise. As an illustration, as soon as an organization has supplied all of the required particulars for the reserving, hosts are scheduled in (and paid on completion); digital occasion rooms are arrange; kits are scheduled for transport and invitations despatched out; and suggestions solicited.

It’s this automation that Rubin believes is among the components that units it aside from different gamers. Nevertheless, it’s price noting that opponents comparable to Luna Park; Teambuilding.com; Outback Team Building; and Marco Experiences additionally declare among the exact same prestigious clients that Confetti does, which means that organizations aren’t placing all their team-building eggs in the identical basket.

So whereas there’s competitors, for certain, Confetti is pushing to place it as a stickier proposition for companies — notably within the enterprise section. Whereas most of its experiences have been traditionally charged on a per-event foundation based mostly on headcount, Confetti is pushing for extra sustainable recurring income streams.

“We’re already offering firms with choices to buy Confetti Credits, which can be utilized to purchase experiences on our platform,” Rubin mentioned. “Moreover, we provide subscriptions to Confetti Credit (with incentives), enabling planners and firms to plan and execute their year-round digital team-building technique seamlessly. In 2024, we’ll more and more depend on packages and subscriptions, notably as we scale our SLG [sales-led growth] movement.”


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