Noro-Moseley Adds AI-Driven Predictive Pricing To Its Portfolio of Marketing Automation Holdings
Last week, Revenue Analytics announced an $11M Series A round led by Noro-Moseley Partners. The Atlanta-based firm combines AI and human expertise to provide pricing recommendations. According to its CEO Dax Dross, Revenue Analytics is planning to use the newly raised fund to employ more than 50 people across the company’s sales, marketing, and product development teams over the next 12 to 18 months.
What were the VCs thinking?
Noro-Moseley Partners look for companies mainly in the technology and healthcare industries that cover a wide range of target markets. In this deal, they are placing their bet on an innovative pricing strategy that incorporates “tens of trillions” of historical data points about demand patterns and competitions to run multi-variate simulations to classify customers into different channels and project target product prices for each channel.
This round reminds us of Noro-Moseley Partners’ recent $16M investment in Outbound Engine’s series C. The digital content marketing startup uses AI to automate marketing campaigns, through email and social media, for business owners. Both ventures are leveraging AI to help enterprises address critical aspects that heavily impact their revenues. Together, these holdings are indispensable for enterprises seeking to optimize marketing and pricing strategies at scale.
The Traction Behind the Deal
With its ground-breaking product and wide coverage, Revenue Analytics has already attracted an impressive roster of automobile, hospitality, media, and service retail conglomerates, including Toyota, GM, Best Buy, NBC Universal, and Hyatt Regency. The company says it is forecasting price recommendations for $35.7 million broadcast radio ads, $100 million in auto parts, and $5 million cruise line tickets daily.
Specifically, Revenue Analytics sets hotels as one of their major target markets. “If you booked a business trip or vacation anytime in the past decade, odds are that the price you paid was the result of a Revenue Analytics algorithm,” said Noro-Moseley Partners’ Alan Taetle. To date, Revenue Analytics claims for adjusting the prices on 42% of North American hotel rooms nightly.
This article originally appeared on Foundational.
Kevin He is a dedicated economics and mathematics double major at Williams College passionate about investing, venture capital, and startups. He has interned in finance, operations, and strategy at PillPack (acquired by Amazon), and has worked as a market analyst for a boutique management consulting firm BusinessHub Consultants in Santiago, Chile.
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