Bainbridge Growth , a Boston-based software startup that provides data, analytics and financial models for e-commerce companies, has secured $4 million in seed funding.
Ben Trego and Austin Gardner-Smith started the company in January 2021 after meeting at an advertising automation software company called Nanigans.
While helping brands like Casper, Peloton and Warby Parker understand how to make Facebook ads more effective, they realized they were building big data systems and modeling revenue based on customer, CEO Trego told Technology Flow. So they wondered what else they could do with the data.
“We started talking to a lot of entrepreneurs and kept hearing the same thing — everyone was struggling with financial planning, estimating and trying to figure out what their true lifetime value of customers is,” he added.
Bainbridge started with financial modeling and added analytics to help the financial model generate better forecasts and data systems. The company collects data from places like Shopify, QuickBooks and Google Analytics and provides its own data warehouse backed up by managed data pipelines to each customer.
The company also built a dashboard, so customers like Geology, Branch Furniture and Mad Rabbit can track progress, show planned value and real-time value.
Bainbridge targets customers with annual sales between $5 million and $100 million. And as e-commerce sales in the US continue to reach $1 trillion by 2023, knowing where a brand stands will become even more important, Trego said.
“We help companies look at their gross margins, their contribution margins and variable costs,” he says. “Now they can see why their fulfillment costs aren’t as high. For one customer, we saw that they were being overcharged by their shipping partner. That solution set them back $350,000 in one quarter.
The new investment closed on August 31 and was led by Las Olas and Vinyl VC in partnership with Bling Capital and Industry Ventures. The company has now raised a total of $6.4 million, including an unannounced pre-seed round in March 2021 led by Bling Capital and Industry Ventures.
“The customer reference calls were the best I’ve ever heard and that’s why I wrote my biggest check to date,” Vinyl VC founder and partner TJ Mahoney said in a statement.
The company has six employees and plans to use the new funding to add to the areas of engineering, sales and marketing and customer success, Trego said.
And while Bainbridge is still in its infancy, the company has 18 customers and is “on our way to $1 million in annual recurring revenue at 10x year over year,” he said.