Forma.ai Closes USD$45 Million Series B Funding!
Forma.ai, the Sales Performance Management solution (SPM) revolutionizing how sales compensation is designed, managed and optimized, today announced it has raised USD$45 million in Series B funding. The round is led by ACME Capital, along with Crosslink Capital, Golden Ventures, Uncork Capital, Xfund and Gaingels. With 400% revenue growth in 2021 and rapid enterprise adoption of its revolutionary SPM platform, Forma.ai plans to use the capital to expand its product development and go-to-market capabilities to meet growing demand in the SPM market.
Today’s business world demands an agile, responsive sales organization, but sales compensation – a $1T annual cost center – remains a decades-old bottleneck. Dozens of software and services companies have tried to solve this complex problem, yet the many processes required to design, administer and optimize compensation plans remain broken; over-worked and over-stressed teams are still working with spreadsheets, manual tracking and calculations and building formulas.
Forma.ai handles billions in annual managed commissions for market leaders like Stryker and Autodesk and CareerBuilder. The company has upended the current cloud spreadsheet paradigm by uniting previously siloed incentive processes in a single, high-performance, instantly scalable, and infinitely flexible environment. The company’s platform automates taskwork that extends far beyond the scope of traditional incentive compensation management (ICM) tools by breaking down sales comp to its fundamental building blocks of functions, rules, and workflows. These building blocks are then reused across customers to automate redundant tasks consistently.
“Sales compensation management processes are broken. Companies are trapped doing the same things they’ve always done, which stifles growth and profitability,” said Nabeil Alazzam, founder and CEO of Forma.ai. “We help companies grow by bringing together all the components of compensation management into a single AI-supported platform, eliminating existing process constraints and bottlenecks. This funding will allow us to continue to rapidly scale operations and lead the market forward with our transformational approach to sales comp.”
Using automated workflows to unite the compensation effort across the organization, Forma.ai brings Finance, HR, Sales, Sales Operations and IT together within a single collaborative environment.
Forma.ai facilitates higher-impact incentives and faster execution to drive optimal sales team behavior by removing the constraints of rigid, disjointed comp processes. As a result, Forma.ai is building a world where high-value compensation resources spend time on driving better sales behaviors through incentive design—not fussing over formula building.
“We are excited to lead Forma.ai’s Series B as they deliver an entirely new paradigm for how sales compensation is designed and executed within large enterprises,” said ACME Capital Partner Brian Yee. “Their unified data platform significantly reduces the manual and administrative work required to maintain comp plans while providing real-time transparency to empower sales teams to maximize their output. One customer said, “Forma.ai‘s technology is 3-5 years ahead of the industry.”
“We have a firm belief that getting sales compensation right can be one of the most significant revenue drivers for a business,” said Phil Boyer, Crosslink Capital partner. “What past attempts to solve this problem have gotten wrong is that they placed the administrative burden of managing sales comp on the customer. Forma.ai eliminates broken and disconnected internal processes and empowers its users to focus on optimizing sales comp using live data as a force multiplier. As early investors in Forma.ai, we’re thrilled with the progress of the company. This is why we have enthusiastically participated in this Series B round to help the company double down on its success and move towards an ambitious vision of revolutionizing how companies deploy sales compensation.”