Gong I.O. Ltd., a startup that uses artificial intelligence to help companies generate more revenue, today said that it has raised $200 million in funding at a $2.2 billion valuation.

The investment follows a year in which the San Francisco-based startup says it has grown its revenue by 250%, though on an undisclosed base. Gong now boasts more than 1,300 customers, including PayPal Holdings Inc., Microsoft Corp.’s LinkedIn and other big names from the tech industry.

Gong provides an AI-infused analytics service that is used by business-to-business companies to help their sales teams acquire more customers. It works by recording sales representatives’ conversations with buyers and analyzing those interactions to find areas for improvement. Gong’s service then gives representatives suggestions on how they can become more persuasive.

For example, Gong can identify if a salesperson should spend more time explaining the benefits of their company’s products. The service also flags more specific items of interest such as if mentioning a certain selling point increases the chance of a deal being signed.

Another use case Gong targets is revenue forecasting. Using the data it collects from recorded customer interactions, the startup’s service provides information on how likely a given deal is to close and how far along are the negotiations. Gong says its algorithms can also flag potential issues that may reduce the deal of a customer buying a product. 

It’s a value proposition that has enabled the startup not only to acquire 1,300 customers but alsto win the backing of several blue-chip investors. The $200 million funding round announced today was led by Coatue, which is known for its investments in companies such as Box Inc. The investment firm was joined in the round by Salesforce.com Inc.’s venture capital arm, Sequoia Capital, Index Ventures, Battery Ventures and others. 

“With global sales teams switching to remote work and field sales teams grounded for the foreseeable future, we are seeing substantial demand for Gong’s solution even in a challenging business environment,” said Gong Chief Executive Officer Amit Bendov.

Others in the venture capital community also see an opportunity for tools that can help remote sales teams become more productive. Qualified.com Inc., the maker of an analytics platform that helps companies target potential customers visiting their websites, closed a $12 million funding round this month. And last month, Gong competitor Chorus.ai Ltd. closed a $45 million round of its own that was led by Georgian Partners. 

Photo: Gong