DiscoverOrg is a leading subscription-based B2B information services company providing proprietary data and integrated insights 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, VP of Customer Success, and Chief of Staff
- Recruit three independent board directors
- Identify, source, finance, and execute four acquisitions, including RainKing, DiscoverOrg’s largest and closest competitor
- Conduct four debt recapitalizations and a debt-financed share repurchase
- Grow >6x in revenue and >6x in profits since the time of investment
DiscoverOrg is a leading subscription-based B2B information services company providing proprietary data and integrated insights that enable B2B Sales and Marketing organizations to identify, connect, and sell to target buyers. The Company serves top technology, consulting, staffing, telecom, and services companies targeting IT, Sales, Marketing, Human Resources, Engineering, C-Suite, Finance, Legal or Operations departments of Fortune-ranked, mid-market, and SMB companies in North America and internationally. DiscoverOrg offers 12 proprietary datasets covering 20 million contacts across over 500,000 companies. Since TA’s investment, DiscoverOrg has become increasingly automated in its sourcing and cleansing of data. This combined with over 4x growth of its customer base and more robust integrations into the CRM and marketing automation systems of its customers have created strong network effects. DiscoverOrg receives over 5 million data points each week from its contributory data model that cleanse and grow the database, enabling the Company to scale at a faster pace while maintaining accuracy in a real-time, automated fashion.
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 lent 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, VP of Customer Success, 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 four strategic add-on acquisitions, leading to significant cost synergies, enhanced service offerings and customer value proposition, and a larger addressable market.
Today, DiscoverOrg employs approximately 550 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 4,400 companies from 1,000, and increased ending Annual Contract Value and Run-Rate EBITDA by approximately 6x and 6x, respectively. DiscoverOrg has also been named a Deloitte Fast 500 company for four consecutive years and an Inc. 5000 fastest-growing company eight times.
All statistical and financial metrics are as of December 31, 2018.
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.