Crossbeam, the Philadelphia software-as-a-service startup backed by Andreessen Horowitz, has merged with Paris-based Reveal.
The combined company will operate under the Crossbeam name, be helmed by Crossbeam co-founder and CEO Bob Moore, and maintain its headquarters in Philadelphia. Reveal co-founder and CEO Simon Bouchez will step into the role of chief operating officer, with executives from both companies taking leadership roles across the new firm.
Financial terms of the all-stock transaction, which closed Monday, were not disclosed.
With the merger, the company now has nearly 30,000 customers and 143 employees.
Crossbeam's software-as-a-service technology uses data to create a network for sales teams to identify potential partners and grow their existing relationships. Reveal's technology serves a similar purpose but largely had a separate network of companies using it. The merger will break down the walls between the two platforms, combining the thousands of companies on each into one network.
Despite the similarities in their businesses, merging wasn't an initial topic of conversation when Moore and Bouchez met at a conference in Miami in 2022. Instead, they connected over their shared histories as repeat founders.
The two kept in touch and found they were "living these very bizarre parallel lives where we never really intersect but we're doing the same thing," Moore said. From there, they had a "healthy, competitive relationship."
That changed late last year when they "started a conversation about whether we could actually create something better for our customers together than we could apart," Moore said.
Moore described both Crossbeam and Reveal as "LinkedIn for data" where the platform is predicated on a network of potential leads. But many of Crossbeam's customer companies had potential partners on Reveal, and vice versa, making it difficult for customers to get the full value out of each. Moore said the number one request that both companies got from their customers was to find a way to combine the two networks.
"The only solution was for us to talk about merging," Moore said. "That's how the conversation started. And we're both ambitious entrepreneurs with aggressive investors who care a lot about winning and getting fair terms when we do deals, but we worked over the course of the last six months or so to arrive at and finalize a deal."
Crossbeam, which was founded in 2018, brought a customer base of 20,000 while Reveal, which launched in 2020, had some 12,000 users. In merging, the companies found they had about 3,800 overlapping customers, Moore said.
The companies' combined headcount includes 82 employees from Crossbeam and 61 from Reveal. The companies made cuts to about 10% of jobs, primarily due to redundancies. The cuts were made proportionally across both companies.
Crossbeam plans to maintain Reveal's Paris office, where about 30 employees are based.
Moore said the company is well capitalized and isn't looking to fundraise at the moment. Crossbeam most recently closed a $76 million Series C in 2021 from a host of venture capital giants including Andreessen Horowitz, Redpoint Ventures and FirstMark Capital. Since the Series C, it has grown revenue by a factor of 10, Moore said, though he declined to disclose specific figures. In total, Crossbeam has raised some $117 million in funding.
Reveal is similarly equity-backed, having raised about $50 million, most recently through a Series A in 2022 that was led by Insight Partners. Moore said its growth trajectory has been similar to Crossbeam's.
Moore's focus for Crossbeam now will be a "heads down" approach to keeping up with its rapid growth. He didn't rule out an initial public offering or a private acquisition in the future, noting that "those are not things that are a priority right now, but we do want to create optionality for those kinds of things."
He added that an IPO is "absolutely a potential path for us," but given the current market that could be several years away.
"We have all the raw ingredients here that we need to be a top decile performer from a SaaS growth standpoint, and at our scale that means we should be working hard to at least double the scale of the business annually. That's what good performance would look like," Moore said.
As part of the merger, Crossbeam's board will expand to include both Moore and Bouchez. Sarah Wang of Andreessen Horowitz, Brad Fiedler from Insight Partners, Logan Bartlett from Redpoint Ventures and Matt Turck from FirstMark Capital will also hold board positions.
This is the latest M&A activity for Crossbeam, which acquired New York-based Partnered in 2022.
