Marketo Co-Founder Leaves to Found Engagio, Now at $6M in ARR

Account-based marketing is hot in the lead generation space today. And, with the plethora of tools available to businesses, it is easier than ever to coordinate a powerful enterprise acquisition strategy that can scale.

Engagio was born to help B2B marketers understand how accounts are engaging, automate multi-channel actions, and track account-based management effectiveness. Their software has been shown to increase target account engagement, deal size, and sales velocity for account-based marketers, all while streamlining the process and saving time.

How much is Engagio doing in ARR?

Engagio is a pure-play SaaS business founded by Marketo Co-Founder Jonathan Miller. The company charges its customers on an annual basis with the average customer spending approximately $30k per year on their software.

According to Miller, the company is now north of 200 total paying customers and is currently doing $6M in ARR. While specifics weren’t disclosed, Engagio is experiencing healthy expansion and is growing in the “high double digits” at this point in time.

What is Engagio’s churn?

Launched in 2014 after Miller left Marketo, Engagio struggled early on to find their ideal customer profile. This mismatch consequently led to significant churn in the beginning, but today churn has been kept under control within their target cohorts. Miller explained that the company is approaching net revenue retention north of 100% in these segments.

When it comes to customer acquisition, Engagio is targeting a dollar-based CAC of around $1.00 with a 12 month payback period. Miller noted that approximately 35% of customer acquisition costs are allocated towards marketing efforts while the remaining 65% is spent on sales team development.

How much has Engagio raised?

Engagio has raised $30M in total outside capital to date. Miller admitted that bootstrapping the company was an option however, he doubted that this tactic would have led to a better valuation due in large part to the “hype” from his previous success at Marketo.

Going forward, the company still has nearly half of this cash in the bank, giving them plenty of runway into the future. Engagio’s team of 60 full-time employees is based in San Francisco with 20 members focused solely on sales and marketing.