How to Invest in Outreach Stock in 2024
Outreach is a prominent company at the intersection of artificial intelligence (AI) and customer relationship management (CRM) software. It provides a semi-automated sales engagement platform designed to enhance sales efficiency by automating repetitive tasks, personalizing communications through AI, and tracking sales statistics. This approach has proven effective, with companies using Outreach experiencing a 387% return on investment (ROI) over three years and a payback period of fewer than three months. With over 6,000 customers and a tripling of revenue in 2023, Outreach is a significant player in the sales technology space.
How to Buy Outreach Stock
Currently, Outreach is a private company, meaning it does not trade on public exchanges and lacks a stock symbol. However, accredited investors can purchase shares through Hiive, a platform for investing in private companies.
Accreditation Requirements
To qualify as an accredited investor, you must meet one of the following criteria:
- An individual annual income of $200,000 or a joint income of $300,000.
- A net worth exceeding $1,000,000, excluding the primary residence.
- Status as a qualifying financial professional.
On Hiive, investors can browse listings of Outreach stock, negotiate prices, or accept asking prices set by sellers, who may be current or former employees, venture capitalists, or angel investors.
Can Retail Investors Buy Outreach Stock?
Retail investors cannot currently purchase Outreach stock while the company remains private. They will need to wait for an initial public offering (IPO) to invest. Although there is no confirmed timeline for an IPO, Outreach’s growth and investor backing suggest a public offering could occur soon, especially as the IPO market warms up.
Alternatives to Investing in Outreach
For those interested in the CRM and AI sectors, several publicly traded alternatives exist:
- Salesforce (CRM): The leading CRM vendor with a significant market share.
- HubSpot (HUBS): Offers a comprehensive business platform with tools for marketing, sales, and content management.
- monday.com (MDNY): Known for its work management tools, including a sales CRM.
Investors can also consider the iShares Expanded Tech-Software Sector ETF (IGV), which includes major tech companies like Microsoft, Oracle, Adobe, Salesforce, and Intuit.
Outreach’s Growth and Valuation
Outreach has raised $489 million across multiple funding rounds, with its most recent round in June 2021 valuing the company at $4.4 billion. This valuation was driven by 100% year-over-year growth in annual recurring revenue (ARR) and widespread adoption of its technology by top public software companies.
Founders and Company Background
Outreach was founded in Seattle in 2014 by Manny Medina, Gordon Hempton, Wes Hather, and Andrew Kinzer, all former Microsoft employees. Today, Manny Medina remains as CEO, while the other founders have pursued new ventures.
Major Investors
Outreach’s notable investors include Sequoia Capital, Tiger Global Management, Vista Equity Partners, Salesforce Ventures, DFJ Growth, Mayfield Fund, Trinity Ventures, Investlink Holdings, Sands Capital, and Lone Pine Capital.
FAQs About Investing in Outreach
What is Outreach?
Outreach is a sales engagement platform that leverages AI and machine learning to automate sales tasks, personalize communications, and improve sales efficiency.
How can I invest in Outreach before it goes public?
Accredited investors can purchase shares through Hiive, a marketplace for private company investments.
When is Outreach expected to go public?
There is no confirmed timeline for an Outreach IPO, but its growth and investor backing suggest a public offering could occur soon.
What are the risks of investing in private companies like Outreach?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.
Who are the major investors in Outreach?
Major investors include Sequoia Capital, Tiger Global Management, Vista Equity Partners, and Salesforce Ventures, among others.