Bainbridge Growth, a Boston-based software startup that provides data, analytics and financial modeling to e-commerce companies, has raised $4 million in seed funding.
Ben Trego and Austin Gardner-Smith started the company in January 2021 after meeting at Nannigans, an advertising automation software company.
Trego, the CEO, told TechCrunch that brands like Casper, Peloton and Warby Parker are realizing that they are building big data systems and changing revenues per customer as they understand how to do more effective Facebook advertising. This left them wondering what else they could do with the data.
“We started talking to a lot of founders and kept hearing the same thing – everyone was struggling with financial planning, forecasting and figuring out what the real lifetime value of their customers is,” he said.
Bainbridge started with a financial model and added analytics to help the financial model make better assumptions and then a data system. The company collects data from places like Shopify, QuickBooks and Google Analytics and provides each customer with its own data warehouse backed by managed data pipelines.
The company has built dashboards for clients such as Geology, Branch Furniture and Mad Rabbit to track progress, show projected value and actual cost in real-time.
Bainbridge targets clients with annual sales between $5 million and $100 million. And as e-commerce sales in the U.S. continue to grow to $1 trillion by 2023, knowing where a brand stands will become even more important, Trego said.
“We help companies see their gross margins, contribution margins and variable costs,” he said. “Now they can see why their fulfillment costs are out of line. We observed a customer being overcharged by their shipping partner. That adjustment set them back $350,000 in one quarter.
The new investment closed on August 31 and was led by Las Olas and Vinyl VC with participation from Bling Capital and Industrial Ventures. The company has now raised $6.4 million in total, with an undisclosed pre-seed round due in March 2021 led by Billings Capital and Industry Ventures.
“The customer reference calls are the best I’ve ever heard and that’s why I wrote the biggest check to date,” TJ Mahoney, founder and partner at Vinyl VC, said in a statement.
Trego said the company has six employees and intends to increase the new funding in engineering, sales and marketing and customer success.
And while Bainbridge is still in the early stages, he says the company has 18 customers and is “well on its way to $1 million in annual recurring revenue, which would be 10x a year.”
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