Business Intelligence Startup RJMetrics Raises $6.25M From Trinity Ventures For Ecommerce Boom

Posted: May 15, 2013 in Business, Enterprise, GT

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In the big new world of business intelligence,
RJMetrics has found a market helping ecommerce
companies easily analyze operations data and make
smarter decisions as a result. Big startups have
signed on, including Fab, Bonobos, Threadless and
thousands of smaller businesses. Today, the momentum has landed the Philadelphia enterprise
startup a $6.5 million first venture round led by Trinity
Ventures. SaaS BI, as online business analysis software is
called within the industry, is full of competitors.
Tableau Software, which is planning to IPO, along
with Good Data, Domo and others, have been
successfully selling to big companies who need
complex integrations to best analyze their own data. On the low end, Datahero and Chartio provide quick
and inexpensive ways for a small business to get
some quality integrations. RJMetrics has focused on what ecommerce
companies need, Moore explains, although he notes
that its clients range from online gaming companies
to nonprofits. The secret isn’t some magical new type
of BI software, but a better focus on lucrative online
transactions businesses. If an online retailer wants to analyze how colors of different types of hats are
selling against each other, for example, a non-
technical sales analyst at the company could go into
RJMetrics and quickly create a visual explaining
what’s happening. The company promises to replicate client data to
hosted, secure servers and optimize it for analysis
within seven days, versus the months required for
more complex products, with a set of APIs developed
around systems that ecommerce companies are
already using. Then it makes a dashboard of data visuals available to the company, including key stats
for transaction businesses, like customer lifetime
value, repeat purchase probability, and cohort
analysis on database segments. This lets a company
answer questions like which types of customers are
likely to regularly buy red fedora hats. For clients with technical staffers, it provides access for them to run
their own queries on more complex data sets hosted
on its own servers. Prices for the basic version of the
online service start at $500 per month. Fab cofounder Jason Goldberg has written effusively
about his experience with RJMetrics, and how its
analysis helped him prove Fab’s worth to investors
when it raised $40 million in 2011. From a fundraising standpoint, providing access
to the RJ data basically said to the VC’s, “here
we are, here’s the data, we’ve got nothing to
hide, take a look and decide for yourself if you
want to pursue investing in Fab.” Effectively, we
turned the pitching on its head. Since the RJ data updates several times per day directly from
our database, it was many times more powerful
than providing powerpoints and excel
spreadsheets. This was the real stuff, auto-
updating! And, since RJ enables all the data to
be downloaded into excel, the analysts at the VC firms were able to do all of their own analysis
on the front end of the investment process. The core RJMetrics product grew out of Moore’s own
data analysis work (which has separately resulted in
some great guest posts for TechCrunch, like this
formative 2009 analysis of Twitter user behavior). The
new funding round, which includes participation from
existing investor SoftTech VC, will go towards sales and marketing. With the overall growth in the Saas BI
industry, Moore says it’s time to focus on the
ecommerce part of it.

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Comments
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