Klaus Closes $1.9 Million Seed Round with Creandum!
Klaus (previously known as Qualitista), an Estonian startup focused on improving customer service quality, has now finalised their $1.9M seed round with Creandum, the most successful VC to come out of the Nordics which is “backing the companies of tomorrow”.
Founded in 2003, Creandum has invested in over 70 startups so far having backed companies such as Spotify (IPO of $30 billion), iZettle (acquired at $2.2 billion by PayPal), Klarna (valued IPO of $2.5 billion), and more recently, the Swedish electric scooter sharing service you’ve probably seen whizzing past you around Helsinki and other cities around Europe, Voi. Icebreaker.vc invested in Klaus in Q2/2018 in a pre-seed round. Klaus will be the first Baltic company that Creandum has invested in making this a momentous occasion for the Estonian startup scene, following the likes of Skype or, more recently, Pipedrive. The investment is also the first to come from the recently announced $300M Creandum V fund where Creandum are planning to continue targeting more early-stage investments in Seed and Series A rounds.
Klaus was founded by a group of people with long experience in the customer service industry and in scaling a high speed startup, Pipedrive. Pipedrive is an Estonian cloud-based sales software company which raised a $60 million Series C round last year and is serving over 85,000 companies globally. Klaus’ CEO and Co-founder, Martin Koiva, was one of the first employees at Pipedrive where he built the customer support system and managed opening the company office in Portugal. Kair Käsper, Co-founder and Head of Growth at Klaus, was also one of the earliest Pipedrive team members leading their product marketing. Martin Kõiva and Kair Käsper built Klaus as a solution to a pain point they experienced while working together at Pipedrive. “After 4 years of building up the support function and hiring over 100 customer facing professionals, it became clear that the best way to ensure consistent quality is to have a system for giving feedback to agents on their work,” said Martin Kõiva.
Since their conception in 2018, Klaus has been improving their specialized conversation review tool that delivers major time savings on processing customer feedback – especially for big teams who are continuing to scale. Klaus, having launched their product 6 months ago, now boasts rapid growth and customers such as Soundcloud, Trivago, Wistia and Figma. The founders report over 200,000 conversation reviews done on their platform and attribute the momentum to unmet demand created by the rapidly changing industry landscape.
“In the last few years, hundreds of thousands of companies have made the switch to cloud-based software such as Zendesk or Intercom and that wave is really only starting to build up,” said Kair Käsper. “What we’re seeing is that after doubling down on efficiency the focus turns to quality. Companies that have gotten started are now struggling because they run their QA programs on spreadsheets. We’re here to fix that.”
Even the most popular and advanced helpdesk or customer service software does not have the same functionality to analyze the contents of conversations as Klaus does. This becomes a real issue especially when the team and the volume of feedback grows. At scale, support agents do not get any feedback for most of their cases and therefore improvement is very limited. On the other hand, managers have very limited information about which interactions they should be focusing on and getting involved with. If a company has thousands of conversations, they are bound to have at least some poor interactions and lose business because of it. Every support manager therefore has growing anxiety about what is being said in those conversations and about having no system to measure or improve upon receiving feedback.
With the newly added funds, Klaus is aiming to gain visibility and expand its technical team to focus on developing new features aimed at providing smarter ways of rating and filtering conversations.
For a more detailed description of the services Klaus provides its customers, you can give their website a visit.
We at Icebreaker.vc wish the team over at Klaus the best of luck in their future endeavours, have enjoyed being a part of their startup journey and looking very much forward to the adventures to come!