Gong’s valuation slips to $4.5 billion in new secondary deal talks
The unicorn, once valued at $7.2B, is closing on a deal following a year of rising AI-driven revenue, with Gong’s ARR reaching roughly $300 million.
Unicorn Gong, which in 2021 was valued at approximately $7.2 billion, is currently conducting a secondary round for company employees and investors at a valuation of roughly $4.5 billion, Calcalist has learned. The offering, conducted through Nasdaq’s private market platform, is now in advanced stages. Calcalist recently reported that the company reached an annual sales run rate of approximately $300 million in January of this year, driven largely by the adoption of AI.
Gong has developed an AI-based platform that provides sales teams with tools to improve productivity, increase forecasting accuracy, and accelerate revenue growth through a deep understanding of customer behavior and business trends. The company currently serves more than 4,500 customers, including four of the ten largest companies in the world, according to Fortune, across industries such as technology, telecom, financial services, media, and healthcare.
The company recently announced that it is hiring 100 additional employees for its development center in Ramat Gan. Gong employs 1,300 people worldwide, including 380 in Israel, with additional offices in Austin, Dublin, Singapore, San Francisco, New York, Salt Lake City, and Chicago. Founded in 2015 by Amit Bendov (co-founder and CEO) and Eilon Reshef (co-founder and CPO), Gong recently moved into new offices in the ICON Tower in the Ramat Gan Stock Exchange district, leasing 4,800 square meters across four floors.
To date, the company has raised about $584 million, with its last official funding round valuing it at $7.25 billion. That valuation represented several rapid jumps, from $750 million in 2019 to $2.2 billion in 2020. It is not yet clear whether the company has repriced employee options, some of which were issued at significantly higher valuations than the current secondary round.
Gong said: “We regularly receive inquiries from potential investors, but as a private company we do not engage in speculation. Gong is growing rapidly as the market moves from the AI experimentation phase to broad implementation, solutions that deliver real business value and measurable results. As organizations shift from basic automation to full AI adoption, demand for Gong’s Revenue AI Operating System continues to grow.
“We are focused on our core mission: realizing the full revenue potential of every company by developing the industry-leading AI system for sales teams. We are excited about the significant opportunities ahead.”
