Not many startups can boast of having Apple, Google, Microsoft, Amazon, and Meta as loyal customers, but Confetti can.
And this is just the tip of the iceberg – the New York-based company also partners with Zoom, Netflix, Stripe, TikTok, Shopify, Adobe, LinkedIn, HubSpot, and 30% of the Fortune 500 to bring unique event experiences to their teams. With a combined market value of $10 trillion, it’s no wonder that Confetti’s client list is turning heads in the business world.
- “These companies use Confetti dozens – some even hundreds – of times a year, for a vast array of use cases,” explains CEO and co-founder Lee Rubin. “Such as seasonal occasions like Halloween, Black History Month, holiday parties or goal-driven activities like competition-building, communication or wellness.”
That’s a grand total of 8,000 companies. In the face of a global pandemic that forced many of their clients into lockdown, Confetti had to quickly adapt and rebuild their business model to continue providing top-notch services.
Most companies would be thrilled to have just one or two of these trillion-dollar tech giants on their customer list. That’s what makes Confetti’s extensive range of big-name logos all the more impressive.
Founded in 2017 by CEO Lee Rubin and CTO Eyal Hakim, Confetti currently boasts a revenue run-rate of $12 million. They anticipate this number will rise to $15-$20 million by the end of the year. To continue fueling this growth, the company has just secured a $16 million Series A funding led by Israel’s Entrée Capital and IN Venture.
Revolutionizing Event Planning
So how does Confetti work? Essentially, companies can use the platform to organize team-building experiences for their remote and hybrid teams. Want to spice things up with a virtual baking or cocktail-making class? Confetti takes care of everything, from finding local suppliers to shipping ingredients directly to employees’ doors. Looking for interactive games like quizzes, Pictionary, or charades? Confetti has you covered with their in-house designed games.
“The platform takes care of the entire event execution process,” Rubin explains.
But this hasn’t always been the case. Confetti initially started out as a marketplace connecting companies with event providers. However, they soon realized the importance of taking full responsibility for the quality and execution of these events. This led to the development of their all-in-one platform that takes care of every step of the process.
Rubin draws parallels with Netflix, another one of Confetti’s esteemed customers. Just as Netflix transitioned from being a content aggregator to a content producer, Confetti has leaned into their expertise to offer tailored experiences for corporate teams.
Lessons Learned & Lessons Applied
Interestingly, the idea for Confetti came to Rubin while organizing a team-building event for a previous job. What she thought would be a straightforward task quickly proved to be a complex and time-consuming endeavor. This experience made her question if there was a more efficient way to create meaningful events for teams.
As if in response to this question, Rubin and Hakim launched Confetti in 2017. Fast forward to the present day, and remote working has become the norm for most companies due to the pandemic. Confetti had to pivot and adapt quickly, resulting in a surge in demand for their virtual event planning services.
“We quickly had to pivot, and after two exhausting weeks, our prototype was already up, running and ready to sell,” Rubin recalls. “I believe this quick shift is a testament to how startups must be able to stay agile and look at challenges as opportunities to grow beyond the original boundaries.”
Furthermore, the pandemic has opened up new opportunities for Confetti. By embracing virtual events, they can now serve clients all around the world without the limitations of physical presence. This has led to significant growth potential for the company.
Scaling for the Future
Prior to this new funding, Confetti had already raised $2 million from various seed, angel, and venture rounds. With another $16 million in their back pocket, Confetti is in a strong position to achieve their goal of shaping the future of remote work culture. This includes building products with recurring revenue models and expanding their support for multi-team companies.
As Confetti began working with larger companies, they realized that there may be multiple teams within one organization using the platform separately. To provide even more value to their clients, Confetti has established a sales team to offer company-wide solutions for team-building strategies.
“To offer our customers even more value, we decided to establish a sales team for the first time who would speak to decision-makers at these companies,” Rubin explains. “With this, we introduced our new ‘company plan,’ which, compared to our pay-as-you-go plan, offers companies many additional benefits and incentives.”
Streamlined Automation
One of Confetti’s key strengths is their automation processes. Once a company provides all the necessary details for an event, the platform takes care of scheduling hosts, setting up virtual event rooms, shipping kits, sending out invites, and gathering feedback. This simplifies the entire event planning process, allowing companies to focus on other priorities.
However, despite Confetti’s unique offerings, they do have competition in the crowded event planning market. Competitors such as Luna Park, Teambuilding.com, Outback Team Building, and Marco Experiences also work with high-profile clients like Confetti’s. This shows that organizations are not relying solely on one provider for their team-building needs.
But Confetti is pushing to become a more integral part of businesses, particularly in the enterprise segment. With a focus on longer-term subscription packages, they aim to provide a more sustainable revenue stream for their growing company.
“We’re already providing companies with options to purchase Confetti Credits, which can be used to buy experiences on our platform,” Rubin shares. “Additionally, we offer subscriptions to Confetti Credits (with incentives), enabling planners and companies to plan and execute their year-round virtual team-building strategy seamlessly. In 2024, we’ll increasingly rely on packages and subscriptions, particularly as we scale our SLG [sales-led growth] motion.”
The future looks bright for Confetti as they continue to revolutionize the way companies approach team-building and events. With their cutting-edge technology and dedication to delivering exceptional experiences, it’s no wonder they stand out among a sea of competitors.
