Getting An Assist Shortens Time To Raise Series C Funding

In a new product category, it’s easier to be the first product in than to replace a product that has already carved a niche. Crimson Hexagon was experiencing excellent organic growth, but the competition had larger sales teams and the ability to make more sales calls. To maximize it’s potential, Crimson Hexagon needed to ramp up sales and marketing. It needed to raise venture capital. Crimson Hexagon combines social media posts with sales and media spending levels to provide meaningful insights, not just about the brand but the product category.

Stephanie Newby, CEO Crimson Hexagon, photo courtesy of Crimson Hexagon

Hindsight is 20/20. “It’s never easy to raise money,” said Stephanie Newby, CEO of Crimson Hexagon. The venture capital market was already showing signs of slowing last summer. So it seems particularly insightful that Newby made the decision to raise Crimson Hexagon’s C round with the help of an investment banking firm, Shea & Company, to shorten the length of the process. Due to the cost, most companies at this stage choose to raise the money themselves.

“Using an investment banker brought a sense of urgency to the raise,” said Newby. “They corralled investors and managed the entire process.” The due diligence process is particularly intense. Using an investment banker ensures every ‘i’ is dotted and ‘t’ is crossed.

On March 8, 2016, Crimson Hexagon announced it raised $20 million in growth equity financing in a round let by Sageview Capital. The company had previously raised $17.5 million in funding.

The company’s growth has been phenomenal. No longer do business-to-consumers companies need to conduct focus groups. Entertainment, consumer packaged goods, automobiles, financial services and technology companies are using big data social media analytics to take the pulse of the market. Even companies that manage investments are using Crimson Hexagon to make buy, sell and hold decisions.