The World Trade Center East building. (Highspot Photo) will soon have a new spot to call home. The startup that builds artificial intelligence-powered sales software has leased two floors with options to take more at the World Trade Center East building near the Seattle waterfront. The 55,000-square-foot space, which will be ready around the end of the year, will have room for roughly 450 people. Highspot CEO Robert Wahbe. (Highspot Photo) Today, Highspot has about 200 employees and expects to hit 300 when it moves into the space. The company will hold on to its existing offices in Seattle, giving it a total footprint of more than 90,000 square feet and capacity for roughly 800 employees. Robert Wahbe, co-founder and CEO of Highspot, said the company is experiencing explosive growth in revenue and other key business metrics, and it is hiring fast to keep up. “We are growing more than 100 percent per year across all the normal business metrics and growing more than 100 percent in our headcount,” Wahbe said. “Given how competitive the environment is we are very focused on attracting and developing world-class people.” Last year, Highspot landed a to power its rapid growth. The company has raised more than $64 million in its lifetime. Wahbe called his company the fastest-growing tech startup with fewer than 1,000 employees in the area. He came to that conclusion by looking at headcount growth numbers on LinkedIn of companies in the index of the top Pacific Northwest startups. Highspot’s customer base is growing 300 percent year-over-year, Wahbe told GeekWire last year, adding to a big-name stable of customers that includes Amazon, Dropbox, Uber, Lyft Twitter, Zillow, Airbnb and SAP. A finalist for at the 2019 GeekWire Awards, Highspot equips sales teams with artificial intelligence-infused technology to improve how they have conversations with prospective buyers. Its “sales enablement platform” is a sales playbook of sorts, analyzing hoards of internally-produced information — historical data; marketing presentations; case studies; data sheets, etc. — and then applying AI to optimize the selling process. Highspot also provides communication and analytics tools with a goal of helping marketing and sales teams better collaborate. Highspot’s future office space. (Highspot Photo) The concept of bringing sales and marketing teams together has been around since the beginning of the modern office, but the technology hasn’t been there. That all changed around 2010, as mobile technology, AI and software-as-a-service innovations progressed rapidly. Since then, the category has taken on a renewed importance, Wahbe said. “It’s a problem that’s been around that people have been trying to solve, but now that it can be solved, you’re seeing the heads of marketing and the heads of sales really excited about this category and buying this software to help their teams be more competitive,” Wahbe said. Wahbe named and as Highspot’s top competitors. The company’s differentiator is its sophisticated AI that helps identify what content should be surfaced at the right time. Wahbe got the idea for Highspot when he was working at Microsoft, where he spent 16 years equipping sales teams with necessary information to help craft perfect pitches to potential customers. He quickly realized it was a difficult task and made a bet that others were experiencing the same problem. He founded the company seven years ago with former colleagues with and . Highspot was recently named to list for 2018, one of just two Seattle companies to earn the honor — Outreach, another fast-growing sales tech startup and a , was the other. Seattle has established itself as a hub for enterprise software, led by giants such as Microsoft, homegrown startups, and satellite offices for big companies including Salesforce. Wahbe emphasized Highspot’s commitment to Seattle, saying he didn’t plan to expand its offices internationally anytime soon. “It’s a little bit against the grain, but we really think the best way to build great software is to be here in Seattle,” Wahbe said.
Tesla has started offering the long-promised $35,000 standard version of its Model 3 electric car. (Tesla Photo) Tesla is finally following through on its pledge to sell its Model 3 electric cars at the standard price of $35,000, but says it’s shutting down on-the-spot showroom sales to remain “financially sustainable” at the lower price point. Going forward, worldwide sales will shift to online only, the company says. Many of Tesla’s stores will be shut down over the next few months, . A small number of stores in high-traffic locations will remain open as galleries, showcases and information centers, but would-be buyers will have to go online to close the deal. Tesla touted the ease of online sales: “You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn’t needed. You can now return a car within 7 days or 1,000 miles for a full refund. Quite literally, you could buy a Tesla, drive several hundred miles for a weekend road trip with friends and then return it for free.” In a conference call with reporters, Tesla CEO Elon Musk said reducing overhead would boost the company’s long-term financial stability. “Ultimately this will be a very strong competitive strength for Tesla,” he said. The announcement came after Musk built up the mystery surrounding today’s 2 p.m. PT announcement. Some speculated that Tesla would lift the curtain on its Model Y crossover SUV, or provide a surprise sneak peek at the all-electric pickup truck that Musk said would be “something quite unique.” Instead, the announcement made good on Musk’s years-old promise that the Model 3 would be offered at the “affordable” base price of $35,000. Up to this point, Tesla had been selling only versions with longer range, steeper price tags and bigger profit margins. The standard Model 3 will have 220 miles of range, a top speed of 130 mph and the ability to go from zero to 60 mph in 5.6 seconds. There’ll also be a Model 3 Standard Range Plus that offers a 240-mile range, 140 mph top speed and zero-to-60 mph acceleration in 5.3 seconds, with a price tag of $37,000 before incentives. Tesla said the shift to online-only sales, plus “other ongoing cost efficiencies,” will open the way for reducing vehicle prices by an average of about 6 percent, “allowing us to achieve the $35,000 Model 3 price point earlier than we expected.” Hitting the $35,000 price point should boost Tesla’s sales, but the move could also raise questions about the company’s profit margin. Musk acknowledged that Tesla is likely to report a loss for the first quarter of 2019, after turning a profit in the and of 2018. “Given that there is a lot happening in Q1, and we are taking a lot of one-time charges — there are a lot of challenges getting cars to China and Europe — we do not expect to be profitable.” Musk said. “We do think that profitability in Q2 is likely.” Tesla has also had to deal with a controversy sparked by Musk’s tweets about Model 3 production rates, which . Due to this week’s rush of developments, — including an after-hours dip that came in the wake of today’s announcement.