Coho AI is a product-led revenue optimization platform created to assist organizations, particularly software-as-a-service (SaaS) businesses, access insights for upselling and growth. Coho AI was founded by Ariel Maislos, who in 2012 sold semiconductor startup Anobit to Apple for $400 million.
TechAviv, Eight Roads, and other angel investors led an $8.5 million seed investment round for Coho AI, which the company disclosed today. The funding, according to CEO Falcon, will be used for product R&D and growing Coho AI’s workforce, which has 17 employees as of now.
In an interview, Falcon told TechCrunch, “Coho AI has developed a unique data consolidation platform that models the business value of a software-as-a-service company and maps it to the behavior of the customers in real-time using machine learning and advanced analytics. Coho AI’s behavioral modeling allows the crafting of personalized customer journeys that improve conversion metrics and help revenue teams, from sales and customer success, together with product teams, achieve higher growth and sales efficiencies.”
The sales, product, and customer success team within business-to-business (B2B) SaaS enterprises are Coho AI’s target market. The platform offers AI models to identify what makes a product “sticky” and what encourages users to upgrade to a paid B2B SaaS subscription plan. It also offers real-time usage models to highlight upsell opportunities and churn risks as well as segmentation models to identify different users based on their behavior.
Falcon further says that models are trained with the help of anonymized data from Coho AI’s customer base. “By doing so, we are creating a network effect that each of our customers gets the benefits of a larger dataset, which results in a more accurate model.”
He further goes on to say, “There is skepticism among SaaS leaders about whether an external tool can model their unique product value and turn it into actionable insights for go-to-market teams. [But] Coho AI truly helps companies improve metrics such as net revenue retention rate and sales efficiency, which have become more crucial in the current economic climate.”
Falcon asserts that Coho AI already has “dozens” of clients and partners despite being in direct competition with companies like Endgame and Correlated. However, he opted not to share any revenue information.