Phoenix-based business-to-business software startup Pidgi has joined PHX Launch venture studio where it will receive funding and mentorship to grow and build its product.
Pidgi founder and CEO Zack Cox said he was motivated to join the venture studio because of its expertise in rapid product development and success in the B2B software-as-a-service industry.
“Their experience and pre-seed capital will accelerate our path to product-market fit,” Cox said.
PHX Ventures founder and managing partner Gregg Scoresby opened PHX Launch in October to start, fund and grow new SaaS companies through early stages of product and market validation.
“As former operators ourselves, we saw the potential in what (Zack) was doing to really drive revenue growth for companies,” Chris Chumley, PHX Launch director, said. “By bringing Pidgi into the studio, we're providing some pre-seed funding for Zack and his team. Then, our venture studio brings a wealth of product development and go-to market experience to accelerate what he's doing.”
Scoresby is the founder and former CEO of edtech firm CampusLogic, which he sold to Virginia-based Ellucian last year. Chumley was former president and chief operating officer for CampusLogic..
PHX Launch is backed by a $5 million fund used solely for pre-seed investments in the venture studio, which is expected to write $250,000 to $500,000 checks for 12 to 15 new software companies in the coming years, the company said in an announcement.
In addition to Pidgi, PHX Launch hosts ActiveClass, a startup that focuses on increasing student engagement and building virtual campus communities.
What Pidgi does
Pidgi, founded in October 2021, helps businesses expand their client base by analyzing data and identifying new leads that have an existing relationship with the company.
Chumley declined to disclose the specific pre-seed funding amount awarded to Pidgi, but said it was “several thousands of dollars.”
Pidgi will be using the pre-seed funds for sales and marketing as well as building out its software platform and introducing it to the market, Cox said.
The idea for Pidgi was sparked while Cox was working at SAP Concur, a SaaS company that provides travel and expense management services to businesses.
“During my time at SAP, members of the revenue team found that our strongest sales opportunities included past buyers and product users,” Cox said. “But, unfortunately, these were the hardest leads for us to find. The process was extremely manual.”
Cox thought that if businesses prioritized prospects with whom they have an established relationship, it sets the company apart from its competition.
Since PHX Launch opened in October, it has been approached by more than 20 startups that expressed interest in joining the venture studio, Chumley said.
“We think Phoenix and Arizona in general should be a hub for business-to-business SaaS companies,” Chumley said. That's our mission here at PHX Ventures — to be a huge contributor to the ecosystem here. A lot of great B2B companies are already here. We think this is something Arizona should become known for.”
