Market Overview

Arcade, a Software Company that Helps Businesses Improve Workforce Productivity, Announces Funding Round


Arcade, a software company that applies a patented gamification approach
to help businesses boost the productivity of their sales team, announced
today that it has received $1.5 million in seed funding from two
investment groups.

Leading the round was Austin-based ATX Seed Ventures, a firm that is
very familiar with employee engagement software space. ATX was joined in
the round by RevTech Ventures.

Arcade CEO David Cherrie, who eschewed Silicon Valley for Dallas two
years, noted that ATX was "the perfect match" for his company.

"We wanted a funding partner that had the experience and insight you
would find in a venture capital firm, but was willing to take a smaller
position and be a participant in our growth," said Cherrie. "Combine
that with the fact that ATX has taken a similar company, which sold its
solution to enterprise-level customers, to a successful exit and it is
to see that this was the perfect match for Arcade."

Cherrie said the funds will be used for marketing purposes and take
advantage of the company's early Fortune 500 customer wins in the
Pacific Rim. Arcade (
will also leverage the successful run it has had in deploying its
solution with a U.S.-based retailer, which is on track to generate $10
billion in sales for its fiscal year.

"Arcade has proven that its patented SaaS solution will help businesses
engage their workforce and make them more productive," said Chris Shonk,
the co-founder and managing partner of ATX. "But what really excites us
as investors is that this is the first time that an enterprise-level
solution has been made for the retail industry that is focused on their
hourly workers and managers. This is an extremely hot space given how
retail must be innovative and increase efficiency because of the
pressure they are feeling from e-commerce giants, like Amazon."

The Secret Sauce

Arcade's early success may be attributable to how it combines an element
of gamification with the more traditional approach of incenting a sales

"We have not seen another company that is using this recipe and
experiencing the kind of success that Arcade is having," said Brad
Bentz, co-founder and partner at ATX. The sales pipeline seems to
support Bentz's analysis.

"Arcade is already having discussions with dozens of billion-dollar
corporations," said Bentz. "The fact that it can demonstrate the value
of its software rather simply, without a lengthy custom integration will
work in its favor as it closes sales from its pipeline."

RevTech also recognized the significant potential in Arcade.

"RevTech identifies themes that deal with the modernization of retail
and makes early-stage investments in top innovators," said David
Matthews, Managing Director at RevTech. "One of these themes is the
engagement and empowerment of the store associate, which is one of the
keys to survival for off-line retail. The Arcade team, led by David
Cherrie, has the experience, passion, and game plan to fully engage the
store associate, which naturally results in an increase to same store

About Arcade

Arcade is a Dallas-based software company that applies a proprietary
gamification approach to help businesses boost the productivity of their
sales team. That approach is embodied by a SaaS solution that Arcade has
created, which intelligently gamifies the workplace to empower leaders
and engage employees. To that end, the company embraces a mission of
being the reason why more than 1 million people love their work.

Interested media should contact Holt Hackney at Hackney Communications

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