Loops.ai Launches With $14M Seed

SAN FRANCISCO & TEL AVIV, Israel, Nov. 15, 2022 — Loops.ai, a new company that has developed the first Product Growth Platform, today announced its public launch with $14 million in Seed funding. Scale Venture Partners led the round, with participation from Cardumen Capital and several prominent product and growth leaders, including Brian Balfour (Founder/CEO of Reforge, former VP of Growth at Hubspot), Lenny Rachitsky (owner of Lennysnewsletter and former product lead at Airbnb), Casey Winters (Former CPO of Eventbrite and Growth Lead at Pinterest), Darius Contractor (Former Chief Product and Engineering Officer of Vnder and VP of Growth at Airtable) and Ben Shanken (VP of Product at Discord). The company will use the funds to continue refining its proprietary insights engine and scaling its team.

Loops enables product and growth teams to improve their key performance indicators (KPIs) by automatically identifying concrete opportunities from their data. Using Loops, early customers have already experienced an average of 20-30% uplift across all topline metrics. Early success has translated to 8x revenue growth for Loops over the last seven months as it rapidly expands its customer base. Companies such as Monday, Replit and Taboola recently chose Loops, with market enthusiasm building.

“Companies are doubling down on profitability and efficiency, so metrics like conversion rate, retention and upsell opportunities are top priorities for them,” said Ariel Tseitlin, Partner at Scale Venture Partners. “Loops uniquely unlocks the answers that drive rapid, yet smart, growth. We see tremendous potential for the product in the market, and the founding team has strong credibility to go after it.”

You’ve Got Data– Now What Do You Do With It?

Over the last 10 years, the tech ecosystem has repeatedly emphasized the importance of making data-driven decisions. Many analytics solutions came to market, but in attempting to address one problem, they created another: they democratized data, not opportunities. In today’s world, both B2B and B2C companies should be able to rely on their mountains of data to fuel their PLG motion and effectively meet their customers’ needs. Instead, product teams are flooded with dashboards and data sources that can be overwhelming. They’re required to find hidden insights and pull them from massive collections of raw data.

Loops debuts at a time when the global product analytics market is expected to reach $30B by 2027, but aside from all of the data companies gather, nearly 70% of companies don’t have a dedicated product analytics function within their organization. With more data being collected than ever before, companies simply are not leveraging it effectively. McKinsey found that only 1% of generated data have even been analyzed, while Splunk noted that 55% of all data collected by businesses is “dark data,” or information that is collected but never used.

Loops no-code solution plugs into data sources and automatically runs thousands of proprietary analyses and ML models that examine millions of data points to reveal exactly what product and growth teams need to know. Applying unique ML models to examine the root of particular outcomes, versus simply looking at relationships between things, Loops maps cause and effect directly to the company’s KPIs. It identifies and prioritizes the most impactful opportunities and pushes recommended actions to teams, eliminating guesswork about the steps they should take moving forward. Loops also measures the impact of actions and refines its recommendations over time so that teams consistently build better and more profitable products.

“Most of the AI models in the industry are based on correlation, not causation. As companies try to make data-driven decisions, they’re actually relying on potential misleading insights,” said Tom Laufer, co-founder and CEO of Loops. “By contrast, our models are based on causal inference methodology, enabling product teams to understand what leads to a certain increase or drop in a company’s KPIs. It’s a totally different approach that doesn’t waste resources on strategies and tactics that don’t work.”

Built by Experts

Laufer experienced the full range of data analytics issues first-hand, previously leading the growth and analytics team at Google.

“With the amount of data collected, landing someone on hundreds of dashboards and hoping that they find the biggest growth opportunities is very challenging,” noted Laufer. “This is a problem I knew we had to fix.”

To make data truly useful, Laufer left Google and connected with Ido Adiv, a serial entrepreneur who successfully built and sold two companies. Adiv is also an established developer who focused on building big data and AI products, equipping him with deep understanding of existing problems. Together, they built Loops.

To find out more about what Loops can do with your data, please visit https://getloops.ai.

About Loops.ai

Loops is a revolutionary analytics tool that helps product and data teams find impactful growth opportunities hidden across product data. Customers can get up and running on the Loops platform almost immediately, with Loops connecting directly to all a company’s different analytics solutions and its data warehouse– and they can do so with confidence in Loops’ privacy-first mindset. Loops doesn’t store any user-level data.

Founded in 2020 by a group of data addicts who learned the ropes at Google and elite IDF technological units, Loops is on a mission to transform data into a growth driver for every organization. Learn more at https://getloops.ai.

Source: Loops.ai