Funding to accelerate sales, marketing and ongoing product innovation
RALEIGH, N.C.— (Jan. 11, 2021)—marGo, an innovator in digital marketing and CRM technology for the direct sales industry, announced today that it has completed a $4-million seed round investment from Rapp Ventures and tech venture fund Cofounders Capital, bringing its total funding to $8 million. The company will use the additional funding to grow its sales and marketing operation, continue to drive product innovation and build a world-class customer success team.
marGo’s digital marketing and CRM solution arms direct sales companies with the most innovative technology available that creates an accessible and connected network between corporate leaders, sellers and customers. marGo’s technology produces more efficient operations, stronger seller engagement and success, improved customer relationships, increased revenues, and stronger analytics and insights to better navigate a changing marketplace while building and maintaining the human connections that make the direct selling industry so unique.
Dean Yellets, marGo’s founder and CEO, recognized that technology purpose-built for the direct sales industry could be developed to help direct sellers optimize their time, make their sales efforts more efficient, and boost revenues as result.
“Direct sales is all about empowering people to make money doing something that they are passionate about, whether that be a side-gig for a few hours a week or as a full-time job,” said Yellets. “I just knew there had to be a better way to not only inspire direct sellers by giving them the tools to automatically and easily launch personalized, digital marketing programs, but also to create a truly intelligent, interconnected ecosystem between direct sales organizations, the field and their customers.”
Yellets joined forces with Alex Withers 18 months ago to drive both the investment and go-to-market strategy for marGo. Withers, chief operating officer at marGo, is a seasoned digital marketing and software executive, having previously held senior roles at LexisNexis, ESPN and the United States Golf Association.
“The direct sales industry has historically done a great job of launching strong products, then recruiting and training independent sellers,” said Withers. “However, in the modern retail environment, they also need to embrace digital marketing and customer-centric CRM programs in order to survive and thrive. The capital raised will help fuel our growth in the market and accelerate the deployment of our solution to help direct sellers elevate their marketing game.”
Ed Rapp of Rapp Ventures will become executive chairman at marGo and Tim McLoughlin, partner at Cofounders Capital, will join its board of directors.
“In our almost six-year history, this is our largest initial investment to date,” said Tim McLoughlin, partner at Cofounders Capital. “Of course, this investment starts with marGo’s exceptional management team. On top of that, we recognized a rapid shift in this market. The direct sales industry saw hyper-growth in 2020, partly due to the pandemic propelling virtual selling, more people entering the gig economy, and consumers shifting from traditional retail to online direct channels. The team at marGo understands the industry’s challenges—and opportunities—and the company is well-positioned to serve the direct sales industry and help these innovative companies lean into the digital future.”
marGo is an innovator in digital marketing and CRM technology for the direct selling industry with the only solution that creates an intelligent, interconnected network between direct sales organizations, their sellers and customers. Harnessing the power of Salesforce, marGo delivers personalized, multi-channel marketing programs at scale within seconds. Headquartered in the emerging technology corridor of Raleigh, N.C., marGo helps direct sales organizations across the globe increase productivity, drive sales, boost replenishment and increase revenues through a single, easy-to-use and feature-rich technology platform built on machine learning as well as dedicated professional services and marketing teams. Visit margo.me for more information on how to improve customer relationships and engagement at your direct sales organization, and follow us on Twitter at @MargoCRM and LinkedIn.
About Cofounders Capital
Cofounders Capital is investing out of its second $31M early-stage seed fund focused on B2B software ventures in North Carolina. Cofounders Capital is managed by serially successful entrepreneur, David Gardner, and his partner, Tim McLoughlin. Cofounders has a local team of over one hundred advisers and volunteer mentors who are investors in the fund, eager to support entrepreneurship in the state and to help their portfolio companies and entrepreneurs succeed.
About Rapp Ventures
Rapp Ventures is a private equity company based in Cary, North Carolina. The company focuses on startup and growth capital investments in small and middle-market companies across a range of industries. Founded in 2018 by Ed Rapp and Jay Rapp, the team’s investment philosophy takes into account the ability of its portfolio companies to positively impact people and industries.