616898c5710dbdaf94af9049 Unnamed

NextRoll Gathers No Moss

To our Valued Investors:

October, so far, has been a busy month for San Francisco-based NextRoll, Inc.

As the company announced the installation of a new President of the RollWorks division (Mihir Nanavati was elevated from Executive Vice President to replace Robin Bordoli, who will stay on as CEO of the parent company), they shared details of increasing business momentum and continuing triple-digit growth.

Before we go deeper into this very encouraging news, let’s review exactly what NextRoll (and, more specifically, RollWorks) does to “make it rain” in such grand fashion. To understand RollWorks, one first must be familiar with Account-Based Marketing (ABM). This focused approach to Business-to-Business (B2B) marketing demands that a corporation’s marketing team and sales team work together with the common goal of targeting accounts that are most likely to benefit from the company’s products or services, and then turning those accounts into customers. Capturing potential customers’ attention is a game of increasing difficulty as the proliferation of free and readily accessible information has boomed throughout the internet era. Because of this, companies that want to make the most of their marketing dollars must place the bulk of their attention on high-value accounts, trying to maintain high levels of account penetration and marketing penetration. To accomplish all of this, marketing teams must borrow from the expertise of sales teams to locate, engage with, and close deals with high-value accounts that matter the most. The effective implementation of an ABM strategy can dramatically boost marketing ROI, deliver more qualified leads and then convert those leads, and enhance a company’s internal symmetry by aligning sales with marketing. ABM has dispensed with the notion that marketing can be a “one-way street” in which prospects are inundated with one-size-fits-all promotions and offers. Plainly stated, there is a lot at stake in the realm of B2B marketing. In an increasingly competitive landscape, these things must be personalized in order to gain meaningful traction. The importance of getting this right cannot be overstated. Without the augmented customer base that an effective marketing approach will deliver, the revenue simply redirects to the competition until survival of the fittest kicks in.

The concept of account-based marketing has, of course, been around for quite a while, but innovations in Artificial Intelligence (AI) and machine learning have breathed much new life into ABM. RollWorks has been a decisive leader in incorporating these powerful mechanisms into the practice. As a B2B specialist, RollWorks assists advertisers who don’t typically need to seize the attention of individual public consumers. They help give voice to chip manufacturers who want to land a contract with massive computer hardware companies, or to produce distributors who would like to be known among supermarket chains. If your company makes tires, RollWorks will help you land the Ford, Toyota, or Tesla account. This kind of marketing requires an elevated level of finesse and ingenuity, as the companies being pitched are generally a much savvier clientele than your average Jane or Joe. The companies targeted in B2B campaigns know all the tricks. They have their own marketing departments, stocked with hyper-educated consumers whose business is not easily won. Still, the same approach of figuring out over time what works and what doesn’t work pays off in much the same way as it does for traditional (and more familiar to most) Business-to-Consumer marketing. This is where the AI and machine learning come in. The RollWorks platform uses it to create, implement, and perpetually refine the “secret sauce” that generates and converts the greatest number of leads.

These rapidly improving technologies make it easier and more affordable for NextRoll to scale ABM to a variety of organizations, and marketers across the board are implementing RollWorks marketing to drive higher value outcomes. RollWorks reportedly captures a return on investment (ROI) approximately five times greater than that of other account-based marketing vendors. In 2018, NextRoll acquired lead generation & outbound sales automation specialist Growlabs.com. With this addition, RollWorks benefits from an additional 325 million contacts and 18 million company accounts. With such an abundant pool of potential customer conversions, RollWorks has the means to put any B2B vendor in touch with the right people to move inventory. Beyond making a plethora of connections, RollWorks figures out how to position the seller in the most attractive light.

Since the RollWorks platform launched only three years ago, it has not only been at the forefront of the ABM movement, but it has taken the driver’s seat in redefining the marketing approach. With the company’s leveraging of their proprietary core data and machine learning technology, RollWorks ABM has simply been the defining standard of market innovation and implementation. The numbers that summarize the year that RollWorks has been having clearly show the benefits of seizing this kind of leadership position. RollWorks customers like Auditoria, BetterCloud, Dialpad, Goverlan, and Snowflake have driven an astounding 247% year-over-year growth in annually reccurring revenue. RollWorks has also enjoyed 40% year-over-year employee growth as their increasingly visible reputation for ABM excellence has attracted the top talent from across the country. RollWorks solidified their hybrid work model this year, thereby retaining that best-in-class workforce by allowing employees to work where they live.

Figures that tell the story of such massive growth momentum are strikingly encouraging regarding how bright a company’s future might be. At Iron Edge VC, though, we take things a little further with a preference to look at every aspect of positive news events like the ones that began the month of October for NextRoll. The internally promoted RollWorks President, Mihir Nanavati, boasts twenty-five years of experience in technology with an emphasis on Software as a Service (SAAS). He has been with the RollWorks division since its inception, so he understands the product intimately. He is perfectly suited to captain RollWorks through an exciting phase, and to help it to continue to gain steam. Nanavati’s new control of the division’s reins, meanwhile, will allow NextRoll CEO Robin Bordoli to dedicate a greater proportion of his focus on the parent company’s larger corporate needs. If this lends itself to more venture capital funding and an eventual debut on the public markets, this rising star and its shareholders stand to benefit greatly.

NextRoll (including both the RollWorks B2B and the AdRoll business-to-consumer divisions) has been generating revenue since 2012, and they brought in $175 million in 2020. They are projecting record EBITDA into the eight figures, growing more than 400 percent year-over-year. Numbers like these would prompt any shrewd investor to look into scooping up a few NextRoll shares in their Morgan Stanley brokerage account, but that simply cannot be done at the moment. NextRoll, you see, is a private company, and as such its shares cannot be bought on any public stock exchange. Iron Edge VC can, nonetheless, provide you with access to our Fund that has ownership interests in this company that applies cutting-edge AI and machine learning to the very business of creating commerce. If you would like to learn more, or if you know anybody else who would, please don’t hesitate to contact us by clicking “Get in Touch” below.

If you have enjoyed this article, visit the Iron Edge Blog for past updates on pre-IPO opportunities and commentary on early-stage investment in general.

As always, shares are available on a first come, first served basis.

All the Best,

Paul Maguire
Founder & Managing Partner

5f6e0d464e388c4975685025 Paul Min

Paul Maguire

Founder And Managing Partner