Wow. Simply wow. The past 48 hours have been an incredible experience. If you haven’t heard, 48 hours ago we announced another round of funding equaling 227 million dollars. This was lead by OMERS Growth Equity as well as contributions from other investors and financial institutions. It’s been a thrill to keep up with the steady clip of press coverage, social media posts, and messages of congratulations. To counteract the flood of exciting content, we’re rounding it all up to serve directly to you. 

Here’s what you may have missed:

TechCrunch – Coveo raises US$172M at $1B+ valuation for AI-based enterprise search and personalization

Coveo’s round is coming about two weeks after another company that builds enterprise search solutions, Algolia, raised $110 million. The two aim at slightly different ends of the market, Tetu tells me, not directly competing in terms of target customers, and even services.

Wall Street Journal – AI Data and Analytics Startup Coveo Raises New Funding

Mr. Tetu said that the company isn’t looking to list on public markets or get acquired. “We’re not in this to exit, we’re in this to build,” Mr. Tetu added.

VentureBeat – Intelligent search platform Coveo raises $227 million at a valuation of over $1 billion

“We believe that Coveo is the market leader in leveraging data and AI to personalize at scale,” added Omers managing director Mark Shulgan. “Coveo fits our investment thesis precisely: an A-plus leadership team with deep expertise in enterprise SaaS, a Fortune 1000 customer base who deeply love the product, and a track record of high growth in a market worth over $100 billion.”

The Globe & Mail – Quebec software titan Louis Têtu marks second $1-billion valuation as Coveo raises milestone financing

The financing values the 550-employee software company – which generates $100-million in annual revenue selling artificial-intelligence-powered cloud search tools known as “insight engines” to corporate customers ranging from Cenovus Energy Inc. and American Express Co. to Inc. – at more than $1.3-billion. Past investors Evergreen Coast Capital of Silicon Valley, Quebec’s FTQ Solidarity Fund and the Quebec government’s Investissement Québec investing arm also participated in the financing.

Financial Post – Quebec AI startup Coveo surpasses $1-billion valuation mark after $227-million financing round

In the same way that tech giants such as Amazon and Netflix offer customized user experiences, recommending products based on past behaviour, Coveo is offering similar tools to companies who don’t have tech in their DNA.

“Effectively we democratize machine learning and data science to essentially help every company. We can help Canadian Tire become like Amazon in a matter of weeks and months, and that is what we do,” Tetu said.

Betakit – Coveo Raises $227 Million CAD to Pursue “Aggressive” Growth in AI E-Commerce Market 

Têtu explained that Coveo’s decision to raise a large amount of capital less than two years after raising $131 million, which he noted has not entirely been spent, will fuel Coveo’s goal of investing aggressively in the e-commerce, and AI markets. Following its 2018 raise, Coveo stated plans to use part of its funding to grow its R&D centres in Québec City and Montréal and later that year the company announced expansion plans for Montréal, with an office that was set to accommodate 300 employees by 2020.

Crunchbase – Canada’s Coveo Reaches Unicorn Status With New Nine-Figure Round

As for whether or not the company will IPO in the near future, Tetu said Coveo could have gone public but there was enough interest and competitiveness from the private market for their product that staying private was a better outcome for the time being. An IPO is a financing event, not a destination, Tetu said, and he and other executives on the Coveo team have been through public offerings before.

La Presse – Intelligence artificielle: Coveo franchit le milliard… à pleine vitesse

Le fonds de retraite des employés municipaux ontariens est le principal bailleur de fonds d’une ronde de financement à laquelle participent également des actionnaires précédents de Coveo, dont le Fonds de solidarité FTQ, Investissement Québec et le fonds américain Evergreen. Coveo émet 15,5 % de nouvelles actions, ce qui signifie que la transaction porte sa valeur estimée à plus de 1,4 milliard de dollars.

Techniquement, cela suffit à la considérer comme une « licorne », épithète accolée aux entreprises privées à croissance très rapide dont la valeur dépasse le milliard de dollars. Le président de Coveo, Louis Têtu, toutefois, ne veut pas qu’on lui attribue ce titre.

« C’est de la bull… Une licorne, c’est un animal mythique. Moi, je suis dans le concret. »

Le Soleil – Un vent de 227 M$ dans les voiles de Coveo

Les nouveaux investissements iront notamment dans le développement de l’axe du commerce électronique. «Les compétiteurs sont de plus en plus gros, ils ont des moyens immenses. Ce que fait une entreprise comme Coveo, c’est démocratiser l’intelligence artificielle. Ça donne la possibilité à de plus petites entreprises de proposer une expérience client qui est devenue la norme avec les Amazon et Netflix», affirme Louis Têtu.

Journal de Montreal – Les Ontariens injectent 227 M$ dans la croissance de Coveo

Têtu, qui est connu pour avoir mis au monde Taleo qui a été vendue pour 1,9 milliard $, avait comme objectif que Coveo ait une valeur de plus d’un milliard de dollars d’ici 2021. L’entrepreneur en série confirme avoir atteint cette marque. Ce qui fait que son organisation fait maintenant partie du club des licornes, comme on dit en affaire.

BNN Bloomberg – Coveo CEO: I Hope Coveo Becomes a Shopify

We also received fanfare and applause from other outlets:

…as well as mentions in several newsletters and round-ups:

Of course, the news quickly spread to social media as well.

However, while the content of these articles is fantastic, they do tend to skip over a major factor in our success: our people. Our colleagues, partners, customers, customers’ customers are the lifeblood of our organization. So, hats off to all of you, for being with us on this AI-powered ride. 

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About Mark Floisand

Mark Floisand is SVP of Product and Industry Marketing at Coveo. He has over 20 years of marketing, sales and general management experience in the technology industry, spanning blue chip and start-up companies across three continents, including Apple, Adobe, BusinessObjects, SAP, Total Defense, Untangle and WeVideo. Mark was most recently with Sitecore, a Coveo technology partner, where he led product marketing. Mark holds a Bachelor of Commerce degree from the University of the Witwatersrand, South Africa; and an MBA from the University of Durham in the UK.

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