3 years ago when we led the round in SimilarWeb, I wrote a blog post, which was kind of an investment memo, explaining why I believed “SimilarWeb has all of the ingredients required for a growth company to excel”: A product that customers around the world need; proprietary data that creates large barriers to entry; a fantastic team with a track record of execution and a culture that attracts top talent.
3 years later, SimilarWeb is delivering on this promise, closing a $120M financing round, further cementing its status as the leading digital intelligence solution empowering businesses around the globe to make better decisions. Since our investment, the company executed on an aggressive growth plan, tripling revenues.
Analyzing what enabled the company to experience this growth, it was interesting to see that these are the same 3 factors we spotted 3 years ago:
1) Product transformed into a set of vertical solutions
3 years ago, SimilarWeb offered one product that allowed customers to compare website traffic. It has since strategically transformed from this general-purpose measurement platform to a set of vertical solutions serving specific use cases.
This shift has allowed SimilarWeb not only to increase value for its customers but also to expand its market and create new growth engines.
The promise to build a product that everyone wants – only expanded.
2) Proprietary data as a strong moat
More than half of the Fortune 100 rely on SimilarWeb for digital insights, including companies like Walmart, P&G, Adidas and Google. Jeff Bezos even cited the company in a recent letter to his shareholders.
Guided by a commitment to provide the most reliable data, SimilarWeb built a deep technological engine that aggregates hundreds of sources that are then coupled with advanced machine learning algorithms. This moat enabled the company to strengthen its position as the industry standard for measuring online behavior.
3) Building a world class management team
SimilarWeb has a unique combination of home-grown and hired global talent. The ability to cultivate talent from within, combined with the ability to attract global talent, makes for a world-class leadership team. The company recently hired accomplished executives to the company’s C-suite – Ron Asher (CTO) who has experience leading global-scale R&D operations, and Kevin Spurway (CMO) who has led marketing for a NASDAQ-traded technology company. I welcome both of them.
SimilarWeb’s executive team
So what’s in store for the future? Here’s my investment memo for the next 3 years:
The opportunity is huge: Digital transformation is ever-increasing. The global pandemic is accelerating digital transformation, and digital data is – and will be – an absolute essential for any company that wants to win in the digital world.
Fast and aggressive growth: The new funding will accelerate the company’s growth plans to fulfill its potential, organically and inorganically. I’m excited to welcome ION Crossover Partners to the board – they bring a track record of supporting high-growth Israeli companies.
Category leadership: SimilarWeb is an early mover in measuring the digital world, and has now emerged as the category leader in this important segment. I expect the company to win the majority of this important market.
Viola Growth: Increasing our holdings
As we are confident in the success of SimilarWeb, we at Viola Growth have co-led this milestone round and increased our investment and holdings in the company significantly.
If you want to join a winning team, SimilarWeb is now recruiting over 200 new employees. I encourage you to check out their open positions and become part of their rapid growth.