Contatta to Compete in the Hosted CRM Market with $3.25 Million Financing  

Contatta, a provider of hosted contact center and CRM solutions, has completed a $3.25 million financing round led by Kickstart Seed Fund II and Grayhawk Venture Fund II.

The funding will be used by the startup for the development and marketing expansion in preparation for its launch. The company aims to become a leader in the CRM market by developing new CRM solutions that deliver beyond traditional CRM and social media tools.

All of Contatta's current board members have participated in this round, including Grayhawk which invested $400K in the first round and $1 million in this second round. This brought the total financing to $6.4 million to-date.

“We invested in Contatta because it is tackling a critical need for salespeople to have all of their tools in one place and easily connect with customers, prospects and team members," said Clarke Miyasaki, general partner, Kickstart, in a statement.

Grayhawk Capital, Southwest's leading venture capital firm, is interested in startups in the mobile, security, cloud/SaaS (News - Alert), business intelligence, financial and healthcare markets.

"An unintended result of the outdated systems on the market today is that most salespeople simply don't like to use them very much,” Miyasaki added. “Contatta changes all of that with a simple and sophisticated solution that scales infinitely."

The company plans to introduce a new collaboration environment that completely tears down the walls between sales teams and customers. Contatta also brings customization and affordability back to CRM in a landscape littered with old, bloated, expensive, and hard to use CRM systems salespeople don't find useful, company officials said.

With this funding, Contatta now has the ability to challenge the CRM status quo, says Pat Sullivan, CEO of Contatta. "Contatta succeeds where other CRM fail. Gone are the days when management has to impose a bloated system on sales teams. Salespeople want to love using their CRM, and we think they will love using Contatta."

Kickstart is making the first investment in Contatta. It is a seed fund whose mission is to kickstart companies in Utah and Arizona by aligning technology creators, industry, entrepreneurs and capital sources behind the funding and mentoring of seed investments.