Toronto-based Canopy Labs has raised $1.5 million. The funding round was led by the BDC Venture Capital IT fund and saw participation from Peter Thiel's Valar Ventures as well as several undisclosed angel investors.
The Canadian startup, which helps mid-sized businesses build predictive customer models to prioritize sales leads and identify high-value customers, is a recent graduate of the Y Combinator program. The company says it will use the funds to scale operations and launch new analytics products.
“Mid-sized businesses don’t need expensive, customized solutions to analyze and segment their customer records,” said Canopy Labs CEO Wojciech Gryc. “We offer our clients insights into their customer data that marketing or sales analysts can understand and use right away to make customers happier and increase their sales. We’ve launched analytics capabilities for our clients in under 24 hours.”
Canopy Labs helps consumer and retail enterprises with a large customer base prioritize efforts and deliver different marketing messages to different customers. The startup says that its self-serve platform creates customer models by importing all of the interactions that a business has with its customers—everything from email, social media, voicemail and call center recordings are analyzed with the products that customers buy and how much they paid for these products. Clients are then provided recommended actions for each customer without a sales rep having to reflect upon each customer, thus saving time for the company while decreasing customer churn and increasing customer spend, according to Canopy.
“Many analytics companies say they can solve tough problems but most IT projects in enterprises fail or end up stagnating,” said Ron Warburton, managing partner at the BDC Venture Capital IT Fund. “Canopy Labs has found a way to address a very clear problem for enterprises that don’t want to hire consultants or create customized customer modeling programs - streamlining their analytics process and delivering smart, usable data in a very short timeframe.”
According to industry analyst IDC, the overall worldwide big data technology and services market is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015, representing a compound annual growth rate of 40%. Canopy Labs estimates there are approximately 90,000 mid-sized businesses that could use the company’s analytics platform.
Canopy Labs was founded by Wojciech and Jorge Escobedo. Wojciech is a former McKinsey consultant and Rhodes Scholar while Jorge, whose role at Canopy is chief scientist, has a PhD in theoretical physics.