Nextiva Raises $200M from Goldman Sachs Asset Management at a $2.7B Valuation to Fuel Growth of Connected Communications

Rhea-AI Summary

Nextiva has secured $200M in its first external funding round led by Goldman Sachs, achieving a valuation of $2.7B. The funds will accelerate innovation in connected communications, focusing on AI, automation, and global market expansion. With $250M in annual recurring revenue, Nextiva is recognized as a market leader in business communications in the U.S. The investment reflects a market shift toward integrated communication solutions, streamlining customer engagement amidst increasing expectations and digital transformation challenges.

Positive

• Secured $200M in funding from Goldman Sachs, leading to a valuation of $2.7B.
• Annual recurring revenue (ARR) stands at $250M, indicating strong financial health.
• Plans for innovation in AI and automation, enhancing product offerings.

Negative

• None.

Funding will accelerate innovation, go-to-market expansion and growth in global markets

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Nextiva, the connected communications company, today announced it has raised $200M, in its first external funding round, from Goldman Sachs Asset Management (“Goldman Sachs”) at a $2.7B valuation. The funding will be used to accelerate Nextiva’s vision to help businesses and teams build stronger relationships with their customers as the only company bringing together communications, customer management, intelligence and automation into a single purpose-built solution.

Nextiva plans to accelerate innovation for connected communications, including AI and automation development, build out new routes to market, and advance global expansion. Nextiva brings together communications with applications built for customer sales and service, analytics, as well as an ecosystem of integrations to third-party solutions. This allows Nextiva to uniquely manage all communications and customer engagement in one place, providing truly unified customer insight to every employee.

“Goldman Sachs is helping advance our mission, which from day one has been to help businesses grow by giving every company access to powerful business tools,” said Tomas Gorny, co-founder and CEO, Nextiva. “Nextiva creates a seamless experience by surfacing insights and learnings from every interaction. By doing this, Nextiva enables companies of all sizes and their teams to better understand and serve their customers and accelerate the growth of their business.”

Stephen Kerns, a vice president within Goldman Sachs Asset Management, commented, “As a native communications company, Nextiva is at the nexus of customer conversation and engagement. They have built a market-leading business with an outstanding team, and we look forward to supporting Nextiva as they help companies discover the power of connected communications.”

Increasing customer expectations and workplace digital transformation are overwhelming companies. On average, businesses are using between 15 to 25 applications to communicate, manage and collaborate with their customers and teams. The result is more logins, endless tabs, and jumping between multiple apps, resulting in customer data getting ‘lost’ between the siloes. Nextiva’s funding and valuation reflect a shift in the market to move away from disconnected communications and siloed applications toward tightly integrated tools and workflows that keep customer communication and engagement at the core.

Nextiva’s first outside funding caps a year of growth with $250M in ARR, continued product development and market leadership as the largest privately held business communications provider in the U.S.

About Goldman Sachs Asset Management

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.

About Nextiva

Nextiva is the connected communications company that helps sales, service, and marketing teams achieve higher productivity and deliver better customer engagement. Nextiva’s cloud-based NextOS brings together business communications applications, intelligence, and automation to help companies build deeper connections with customers, and manage all conversations and relationships in one place.

Nextiva is named a Customer’s Choice in Gartner Peer Insights for UCaaS. Today, more than 100,000 businesses depend on Nextiva with 4B conversations and 12B minutes of talk time flowing through its communication networks each year. Based in Scottsdale, Ariz., Nextiva is ranked a Best Place to Work by Glassdoor. Learn more at www.nextiva.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210914005922/en/

Media Contact:

Caroline Hacker

Caroline.Hacker@nextiva.com

Source: Nextiva

FAQ

What funding amount did Nextiva raise from Goldman Sachs?

Nextiva raised $200M from Goldman Sachs in its first external funding round.

What is Nextiva’s valuation after the funding round?

Nextiva is valued at $2.7B following the funding round.

How much annual recurring revenue (ARR) does Nextiva report?

Nextiva reports an annual recurring revenue of $250M.

What will Nextiva use the $200M funding for?

The funding will be used to accelerate innovation, market expansion, and enhance AI and automation development.

What market position does Nextiva hold in the U.S.?

Nextiva is recognized as the largest privately held business communications provider in the U.S.