How Gradient Works Achieved 120% NRR Since Last Year’s Stage 2 Capital Catalyst
Lean sales teams are today’s norm, so efficiency has become the key to revenue success. This means reps need to cover their market as effectively as possible.
Enter Gradient Works….
Gradient Works is an early-stage software startup based in Austin, Texas. They’re helping B2B sales teams drive pipeline with a hyper-efficient account coverage model called dynamic books.
We first met Gradient Works when they participated in last year’s Stage 2 Capital Catalyst. We sat down with Co-Founders Hayes Davis (CEO) and Jenn Deering Davis (Head of Marketing) to discuss their experience with the program, and hear about their growth since the Catalyst ended last summer.
What drew you to the Stage 2 Capital Catalyst?
“A few years back, we were introduced to Liz Christo (Stage 2 Capital Partner) through another member of the Stage 2 community — AJ Bruno (Co-Founder & CEO of QuotaPath / Stage 2 Capital LP),” Hayes recalls. “Liz filled us in on the Catalyst program, and helped us determine if we’d be a good fit.”
“We both had a ton of go-to-market experience, but we didn’t want to get too tunnel-visioned,” Jenn adds. “We were excited to step out of our own experience and go back to the basics, while being supported by Stage 2’s incredible LP mentors and coaches.”
What specific goals did you set for Gradient Works during the Catalyst?
“The Catalyst is great because it offers a breadth of experience — different companies, at different stages, and in different markets — that illustrate how to implement successful go-to-market strategies,” Hayes shares. “We set out to focus specifically on developing pricing and packaging that worked for us, while building out our larger story.”
What milestones has Gradient Works achieved in the last 12 months?
“Since last summer, we’ve doubled our revenue and number of customers. We’re at about 120% NRR,” Hayes says. “This can definitely be credited to the tenants of the program — nailing product-market fit before go-to-market fit, identifying indicators of retention, etc. We had a solid foundation that set us up for accelerated growth.”
What were the most valuable resources or mentorship experiences you gained from the Catalyst?
“We were thrilled to connect with Kristina McMillan, who has incredible category creation experience. She has been brought on as an advisor, and we talk to her at least once every other week,” Hayes says. “Kristina has played a big role in product development and messaging — when selling, she knows how to help people see themselves in the problem you’re describing.”
“Toby Carrington was another great introduction,” Hayes adds. “He sells into a similar market, and saw the value of Gradient Works, so he made some wonderful introductions within his network.”
What's next for Gradient Works? How do you envision the next phase of growth?
“During the Catalyst, we launched Dynamic Books and the platform to support it. After a customer summit earlier this year, there was a big request for more intelligence — choosing the actual accounts and where to focus,” Hayes says. “Businesses want to home in on their ICP — this market downturn is all about driving focus.”
“We’re thrilled to be launching Market Map, which we’re calling AI for your ICP. Market Map uses generative AI to research all the accounts in a company’s CRM and scores them across thousands of dimensions. It goes beyond simple industry classification to decide which prospects are similar to a user’s best customers by providing a map of those accounts, making it super simple for companies to figure out which prospects to prioritize,” Hayes says.
B2B sales teams can start with Market Map for free at https://www.gradient.works/market-map
We’re wishing Hayes, Jenn, and the Gradient Works team all the best as they continue their impressive journey! Learn more about Gradient Works here: https://www.gradient.works/