DirectScale Closes $8.5M Series B Round

Led by Grotech Ventures, participation from Kickstart Seed Fund and Origin Ventures.

DirectScale was launched in Utah as the answer to an enormous need in the business world— direct sales software created in a state with unending amounts of direct sales companies, emphasizing scalability.

2015 marked DirectScale’s initial foray as a company, simultaneously launching a software platform and announcing a $4 million Series A round from Kickstart Seed Fund and NetSuite.

“When we started DirectScale, we wanted to make sure we provided the right solution for the market,” said Rodger Smith, CEO of DirectScale. “We didn’t want to be an also-ran in the space, we didn’t want to be a slightly better alternative than the existing providers. We wanted to hit a home run and deliver a full-stack solution that this market has been so hungry for — we’ve gotten that to a really good place, but there’s more to do.”

Having found product/market fit, DirectScale now concentrates on building out the software platform to offer more solutions. This requires money and multiple firms were happy to oblige, leading us to today’s news: DirectScale has closed an $8.5 million Series B round led by Grotech Ventures with participation from Kickstart Seed Fund and Origin Ventures.

“A software product is never done,” said Smith. “The core stuff we do very, very well, but we see some interesting trends in the peer-to-peer social selling space that we want to lead out and capitalize on…We have validated the solution, the market loves it, and we’ve gotten the product to a point where we are ready to push on the gas and move into a position of market dominance.”

DirectScale has grown to nearly 60 employees in the last two years, with staff dedicated to the existing client base and platform. While Smith envisions continued efforts to improve product development, he also says the new funding round will allow DirectScale to spend on marketing and sales in a way they never have before.

“One thing that has surprised us is how much opportunity there is and how much of it is coming organically,” said Smith. “This industry is not the direct-selling of the 80s and 90s, it’s evolving and driving a tremendous amount of growth in this space. We’re poised to take advantage of that and we couldn’t be more excited.”

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