DiscoverOrg is a leading subscription-based B2B information services company providing proprietary data to B2B Sales and Marketing organizations.
When interviewing private equity firms, many start sounding the same and there is always a fear that they won't deliver on their promise to be partners with entrepreneurs – Todd Crockett, Jason Werlin and Jason Mironov delivered.
TA has helped DiscoverOrg:
- Recruit a CFO, CMO, SVP of Data and Research, General Counsel and Chief of Staff
- Recruit three independent board directors
- Identify, source, finance and execute three acquisitions, including RainKing, DiscoverOrg’s largest and closest competitor
- Conduct four debt recapitalizations and a debt-financed share repurchase
DiscoverOrg is a leading subscription-based B2B information services company providing proprietary data that improves the efficacy and efficiency of B2B Sales and Marketing organizations by offering a greater level of visibility into the organizations they target. The company serves top technology, consulting, staffing, telecom and services companies targeting IT, Sales and Marketing, Human Resources, Finance, Legal or Operations departments of Fortune-ranked, mid-market and SMB companies in North America and internationally. DiscoverOrg offers 11 proprietary datasets covering three million unique contacts across 125,000 companies with a 95% accuracy guarantee. The company has become increasingly automated in its sourcing and cleansing of data. Combined with increased integrations into the CRM and marketing automation systems of its clients, this has created network effects and the beginnings of a contributory data model.
The Investment Opportunity
TA takes a great deal of pride in partnering and collaborating with entrepreneurs and founders to help accelerate growth and build leading companies. In particular, our firm maintains a deep history of investing across a broad range of business services sectors, including information services. TA had closely followed the development and growth of DiscoverOrg for nearly a decade and identified it as an attractive investment opportunity as the need for higher quality information has grown increasingly important in the wake of the rise of investment in CRM and marketing automation systems, inside sales and account-based marketing. TA completed an investment in DiscoverOrg in May 2014.
Adding Value to Scale Growth
TA believed that DiscoverOrg possessed the proprietary data, technology-enabled processes and insight to succeed but needed guidance and support to capitalize on and accelerate its strategic vision. We worked alongside DiscoverOrg’s management team to develop an in-depth strategy that leant itself to opportunistic growth opportunities. Utilizing TA’s network of relevant industry contacts, we introduced DiscoverOrg to prospective customers; recruited three independent board directors; played a large role in recruiting new management, including the Company’s CFO, CMO, SVP of Data and Research, General Counsel and Chief of Staff; and helped the company create and implement ways to track retention, upsell and customer engagement.
Accretive acquisitions have historically been a key value-add for TA’s portfolio companies. Since our investment, TA has helped DiscoverOrg identify, source, negotiate and debt finance three strategic add-on acquisitions, leading to significant cost synergies, enhanced service offerings and a larger addressable market.
Today, DiscoverOrg employs approximately 500 employees based across three U.S. offices in Vancouver, Washington (headquarters), Bethesda, Maryland and Philadelphia, Pennsylvania. Since partnering with TA, DiscoverOrg has significantly grown its customer base to over 4,000 companies from 1,000, and increased ending Annual Contract Value and Run-Rate EBITDA by approximately 4x and 5x, respectively1. DiscoverOrg has also been named a Deloitte Fast 500 company for two consecutive years and an Inc. 5000 fastest-growing company seven times.
All statistical and financial metrics are as of December 31, 2017.
Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.