About 80% of its customers have switched from horizontal project management tools to their profitability-focused, AI-powered, vertical solution. New investors include ScOp Ventures, Global Founders Capital, State48 Ventures, and notable angels.
San Francisco, CA, July 21th, 2021. COR, the leading project profitability solution, today announced a $6 million investment from important VCs and six Silicon Valley-based unicorn founders. At the time of funding, COR’s average growth was 9% MoM for the last 6 months with a 114% NRR and 4% 12-month Churn.
In the US, roughly $5 trillion per year (a quarter of the country’s GDP) comes from professional services including advertising, consulting firms, IT, legal, and accounting services. On a global scale, there are almost one billion people offering services.
Most of these services are delivered as fixed-price projects despite fees being derived from variable hours. Poor project estimates and overpromised deliverables can quickly shrink profit margins.
Santi Bibiloni (CEO), Jose Gettas (COO/CFO), and Gabriel Marin (CTO) experienced this problem first-hand while working on Bibiloni’s previous venture, Balloon Group, an e-commerce focused marketing agency. “We [the co-founders] tried different project management tools such as Asana, Jira, Monday.com, and more, but none of them solved this problem,” says COR’s Silicon Valley based CEO.
“In the billable hours market, project management is not the main problem. In the billable hours market, Project Profitability is what needs to be tackled,” Bibiloni adds.
COR was created as a next-generation Project Profitability solution, with vertical (end-to-end) tools for creative and professional teams that intelligently suggest how to manage teams, projects, and finances.
Today, almost 80% of COR’s customers have switched from horizontal project management tools to its solution, said the founders.
COR uses AI to understand how much time a task takes, and it learns from it, taking into account the user’s performance, the type of work, and how demanding a specific client is. This helps companies send accurate estimates and execute profitable projects.
“People hate logging hours. First because it is a manual process. Secondly and most important, because they feel controlled,” says COR’s CEO.
“At COR we not only work to automate this process but to educate people on understanding that time spent, which ultimately means project cost, is the shortest way to have a better work-life balance. If you sell poor fees, you’ll need to overwork your team. Healthy fees help companies hire the right amount of talent and pay them fairly.”
Both big and small agencies, as well as consulting firms, have increased their revenues and profits without adding any new clients. This creates a healthier environment both for shareholders and employees, an important statement for a purpose-driven company that expresses this in its message to agencies and its manifesto.
COR is today serving different local offices at WPP, Omnicom, IPG, Publicis Group, Havas, and Dentsu, as well as hundreds of smaller firms. Also, Fortune 500 brands are using COR’s Client Access panel to better engage with their service providers which give them utilization and workflow transparency as well as a way to collaborate in the creation process.
“COR helped us understand where we have to optimize, where we have to be more intelligent, it has become an ally of digital transformation. The future is to have that data in real time”, affirms MullenLowe SSP3´s CIO, Plazas.
Silicon Valley-based COR brought world-class investors to its new financing round: ScOp Ventures (DoubleClick, Procore, ICC), Global Founders Capital (Slack, Facebook, LinkedIn), and the new fund State48 Ventures.
Also, the startup added well-known entrepreneurs and executives to its list of founders, such as:
- Ed Castro Wright, Walmart’s former Global CEO (NYSE: WMT)
- Doug Smith, Co-Founder of Anaplan (NYSE: PLAN)
- Marcos Galperin, Founder of MercadoLibre (Nasdaq: MELI)
- Tom Chavez, Founder of Krux (acq. by Salesforce for $1B+)
- Niels Gron, Founder of Aquafold (acq. by Idera)
- Ivan Markman, CBO for Verizon Media, ex GM Neustar.
- Francisco Alvarez-Demalde, Co-Founder and Managing Partner of Riverwood Capital
- Among other impressive Execs such as Sales Director at HubSpot, Engineering Director at Google, Founders of Turismocity and Waypay, and more.
Kevin O’Connor, the founder of DoubleClick (acq. by Google for $3B+), is on COR’s Board of Directors. “We fell in love with COR because we were impressed with how it has managed to apply AI to help agencies boost profitability. COR has been demonstrating very rapid growth by adding clients from the most important advertising agencies in the world. We believe that his team is unstoppable in its goal of building a great company”, says O’Connor.
The company also has formal industry-specific advisors such as David Sable, Michael Farmer, and Harvey Kent, who held positions as Global CEO at Young & Rubicam, Director at Bain & Company, and Advisor to Mediaocean, respectively.
The round was raised in two separate moments, $2M at first and $4M at least, each of these raises with different valuations, but same stock preferences and the same Board of Directors. The last $4M raise initial term sheet came inbound and took COR only 45 days to close the complete round.
COR is the leading Project Profitability solution for creative and professional teams. Its next-generation, end-to-end solution for agencies, consulting firms, IT, lawyers and accountants, use AI to track and forecast time spent to proactively suggest how to manage teams, projects, and finances in one single place.
Santi Bibiloni, CEO at COR