Sales and software are an ideal combination, as demonstrated by successful companies like Salesforce, HubSpot, and Creatio, which have built thriving businesses around customer relationship management (CRM) software tailored for sales teams. However, Resquared (also known as Re²) believes that these firms may be overlooking a critical opportunity.
Recently, the Y Combinator-backed startup announced it closed a $5 million seed round for its innovative B2B sales tool, designed to help local businesses across the U.S. that often lack a significant online presence, aside from basic consumer-facing social media profiles on platforms like Facebook and Instagram.
Griffin Morris, Resquared’s co-founder and CEO, shared insights during a recent media interview: “We invest significant time and research in determining the most effective ways to connect with local businesses. They are usually not on LinkedIn, but reaching out via their Facebook or Instagram pages yields a 20% response rate, often directly from the business owner. This understanding drives our product development.”
To date, Resquared has gathered data on over 11 million small and medium-sized businesses (SMBs) in the U.S. and Canada, offering a suite of AI-driven email and social media messaging tools tailored for these businesses.
Morris added, “We currently support thousands of sales reps and have numerous sales organizations as clients. Our growth is significantly fueled by content investment and positive client testimonials shared on social media.”
This funding round was led by SNR’s Kevin Patrick Mahaffey, alongside notable investors including 1984 Ventures, Merus Capital, Oleg Rogynskyy from People.ai, and Don Tepman, known as “StripMallGuy” with over 230,000 followers on X.
The new capital will accelerate Resquared's mission to carve out a distinct segment in B2B sales, specifically addressing the unique challenges of engaging with local SMBs.
The Challenge: 400,000 Sales Reps with Ineffective Tools
Research obtained by Resquared indicates over 400,000 sales representatives in the U.S. focus on local businesses, selling everything from real estate leases to software tools. Unfortunately, many of these salespeople still rely on outdated methods, such as door-to-door sales or telemarketing.
While some utilize platforms like ZoomInfo or traditional CRMs, these tools primarily draw data from LinkedIn, which only 10% of local business owners use. This leads to inefficient outreach, inundating local businesses with spam messages and limiting their vendor options.
How Resquared Empowers Sales Reps
Resquared provides a solution by equipping thousands of sales reps with campaigns that achieve open rates twice the industry average. By leveraging AI-driven automated outreach via email and social media, the platform ensures a higher return on investment, with clients reporting up to a 30% increase in monthly sales.
Resquared combines its extensive local business data with comprehensive analytics to track the effectiveness of outreach messages. “We’ve always incorporated AI and machine learning features to analyze interactions and optimize our approach,” Morris explained, detailing the platform's reliance on proprietary machine learning and open AI APIs.
The pricing for Resquared’s platform is tailored to each client based on the number of users. For example, onboarding a sales team of five reps typically costs about $1,000 per month, with personalized training provided to ensure effective sales processes.
Mahaffey commented on the investment, stating, “Selling software online is futuristic, equipped with AI tools and sophisticated pipelines. However, selling to real-world businesses has remained stagnant for decades. Resquared equips sales teams with the tools they need to engage local businesses effectively, bridging the gap between progress and main street.”
Origin Story
Resquared was founded by Morris and Tyler Carlson, who share a background at the intersection of technology and traditional retail. Morris started his career selling door-to-door before moving into product management. "My quota was to visit 40 local businesses daily. Over a decade later, many still rely on high-volume, low-quality methods,” Morris noted.
Carlson collaborated with major franchises to modernize their operations through technology. Building on their experiences, Resquared was established to not only enhance sales processes but also to create a new B2B sales segment.
The team developed targeted playbooks based on local business needs, evolving into a comprehensive platform supported by data-driven best practices and AI automation. Additionally, Resquared offers free resources, including courses, playbooks, and a podcast titled “Selling Local.”
Initial Success Stories
Resquared utilizes a database containing over 11 million local businesses to facilitate high-quality, automated outreach. Its clients include publicly traded retail companies, SEO-focused marketing agencies, and various service providers.
Morris highlighted their data-gathering approach: "We source information from public records, social media, and business websites. While the data can be messy, we clean and organize it to ensure quality.”
Growth and Future Outlook
Experiencing rapid growth, Resquared currently serves thousands of sales reps and numerous sales organizations. The funding will support an expansion of its sales and engineering teams, enhancing their product offerings.
Operating mainly in the U.S. and Canada, Resquared caters to a diverse clientele, from billion-dollar public companies to regional businesses with sizable sales teams. The fully remote team collaborates across various locations, maintaining a strong sense of unity through regular meetings.
With a fresh capital infusion and a strategic vision, Resquared is set to transform B2B sales for local business vendors, delivering high-quality, personalized outreach to an underserved market. To discover more about how Resquared is reshaping engagement with local businesses, visit Re2.ai.
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