VergeSense’s $60 Million Funding Round Highlights The Workplace Analytics Market Is Surging
On November 9, 2021, workplace analytics vendor VergeSense announced that it had closed a $60 million Series C funding round led by Scale Venture Partners. San Francisco-headquartered VergeSense plans to use the investment to enhance its spatial data capabilities and expand its team globally. This investment follows $21 million of funding which VergeSense raised in 2020.
VergeSense offers a workplace analytics platform helping firms capture and analyze real-time data on space utilization to inform workplace strategies and operations. Additionally, the vendor provides AI-powered wireless and wired IoT sensors to measure occupancy in an open area or detect entry into a designated space. It helps firms capture a greater depth of space usage data as its object detection capabilities can determine alternative signs of occupancy at a workstation, such as a coat or laptop, when an employee is not presently sitting there. The vendor’s proposition has been resonating with buyers; it achieved a 400% increase in annual recurring revenue from Q2 2020 to Q2 2021 – over half of which stems from customer expansion.
This round of funding follows a string of investment in the workplace technology market, with vendors such as Density, Locatee and OfficeRnD raising fresh capital over the past 12 months. Investor interest in smart workplace technology reflects the market is growing, as corporates seek more sophisticated tools that support hot-desking and hybrid working. According to our smart building software market size and forecast, spending on workplace software will outpace the rest of the market, growing at a CAGR of 14% from 2021 to 2026.
We expect the smart workplace software market will remain red hot amongst technology investors over the next 12 months. As firms globally transition to hybrid working with fluctuating office attendance, they have an increasing appetite for more flexible and user-friendly workplace tools. According to our 2021 survey with 285 facility executives, 14% of firms plan to replace legacy space booking software and 20% plan to extend investment in utilization monitoring technology. With lots of new entrants coming into this market, workplace technology vendors will need a strong angle of differentiation and growing customer bases to capture a share of ongoing funding.
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