Zomentum announces funding round to build on momentum with MSPs

Zomentum has signed up hundreds of MSPs since their tool became available last fall, despite the pandemic's shutting down their activities around trade shows.

Zomentum CEO Shruti Ghatge and channel leader Ted Roller

San Francisco-based Zomentum charged into the managed services space last fall with a product that enables MSPs to easily manage their sales funnel throughout its lifecycle. Since then, the company has seen strong momentum, and has signed up hundreds of partners despite the significant handicap of the trade shows where vendors typically meet new partner prospects being shut down. Now they are looking to build on that momentum further, by raising $4.1 million in new financing to expand both their product development and their channel-building initiatives.

“MSPs have not had the ability to manage from soup to nuts what happens from the time a lead comes in until the time they close the sale,” said Ted Roller, who runs Zomentum’s channel strategy. “Zomentum provides a toolset for MSPs to manage their sales funnel and client engagements.

“We are bringing a tool to people who have an understandable sales process but who don’t have the tools to execute it effectively – which is why our adoption rates are insane,” he stressed. “What we are announcing now is the raising of $4.1 million to continue the mission.”

The funding comes from two VCs, Accel Ventures, their original investor, and SAIF Partners.

Roller said the new capital will be divided fairly equally between product development and Go-to-Market initiatives.

“We will be able to accelerate our Go-to-Market dramatically, as well as our speed to market with the product,” he indicated. “We have some game changing features for MSPs on the road map, and now we can accelerate bringing them to market.”

Roller said that MSPs have reacted very positively and many have signed up since the product became available last fall.

“Hundreds of MSPs are leveraging Zomentum every day to drive their sales funnel process,” he stated. “We are overjoyed at the adoption. We have seen channel partners from all walks of operational maturity, from people who are just starting their IT service provider business, who don’t really understand it well, through to very mature MSPs.”

MSPs have continued to sign up through the spring, despite the fact that the pandemic has shut trade shows and their face-to-face networking opportunities down completely.

“We are definitely hampered by the lack of events,” Roller said. “On the other hand, the virtual events we have been able to do have let us reach many MSPs. I feel that Zoom is my second home. In spite of the fact that we don’t see the partners in booths, we are still able to explain what we are doing and why it is important to them.”

Roller emphasized that the ability to make the kind of incremental savings that Zomentum provides has great advantages for MSPs in today’s market.

“MSPs pay attention to this because the channel space is becoming more competitive all the time,” he said. “They can no longer count on organic word of mouth growth to sustain their business. There are more operational MSPs than there were five years ago, and they WILL take away an immature MSPs business if they are not set up right to grow and to take care of their customers.”

Roller indicated that Zomentum is also talking with resellers who have not yet added managed services, but who are thinking about adding them.

“Most partners have added MSP functionality today, but we think its important to take care of partners with legacy models who want to move in to this as well,” he said.

Zomentum has been busy adding integrations and features since the fall.

“Last week, we launched a Syncro integration, and ConnectBooster and Infusionsoft are right around the corner,” Roller said. “A month ago. we fully automated CRM functionality. We have turned it into a fully automated system which is utterly configurable by the MSP.”

Zomentum has also added the ability for MSPs to send out videos containing quotes and proposals.

“COVID has certainly driven attention around this,” Roller said. “A lot of partners are now sending out quotes with a video description. Really creative partners are sending out proposals en masse to prospects doing this.”