Contentsquare Lands $500M Round to Take Digital Experiences to the Next Level
by Jim Lundy
Contentsquare, a firm that is transforming the digital experience landscape by allowing enterprises to quickly understand and then adapt customer journeys, announced a massive funding round of $500M on May 25th. The round was led by the Softbank Vision fund 2 and Softbank’s Michel Combes becomes a member of the Contentsquare board. This blog analyzes the deal and the potential for this emerging market.
Analysis of the Contentsquare Deal
Contentsquare has been growing due to its intuitive digital experience analytics that provides insights into online customer journeys. This funding round, one of the largest in the last two years, will help it to expand globally as well as continue its acquisition spree. Given the depth of analysis Contentsquare delivers and the fact that business professionals can use it, Aragon sees this market as an emerging new category that Contentsquare has a solid grip on.
Digital Experience Analytics—A Market that is growing
Aragon sees a growing market for all customer experience offerings – often which falls into the tech stack owned by the Chief Marketing officer – but now sometimes the Chief Digital Officer.
While many marketers lean in on single dimension analytics offerings like Google analytics, the growth of Digital Experience analytics has not gone unnoticed. A number of emerging providers compete with Contentsquare including Acoustic, AirKit, FullStory and Glassbox.
We’d note that Contentsquare has caught the attention of more than a few global brands and counts customers such as BMW, Dell, Disney, IKEA, and Microsoft as customers.
Of course, the growing market for Content Experience platforms means that Adobe AEM and others such as Contentful and Contentstack cannot be left out of the conversation – and with AEM all of the Adobe analytics offerings.
With this round, Contentsquare will draw the attention of many of the CXP vendors, who could become resellers of Contentsquare – to help them compete better against Adobe.
More Investors will now Jump in
This round is one of the largest single rounds in the last eight quarters, solidifies Contentsquare as one of the largest providers. As a result of just this one event, Aragon expects to happen is a flood of additional investment in current and new players that will enter this market. We also expect that as quickly as new entrants enter this market, many will be acquired as larger firms see the market potential and don’t want to miss out.
Contentsquare has zeroed in on a market that will help to streamline and accelerate customer journeys. Understanding behaviors is never easy and given the ease of use and the sophistication of the offering, we feel Contentsquare is positioned very well for growth, as is the emerging category overall. While we have used the term digital experience analytics, we feel there may be a better category name that develops over time. Developing…