Levitate, a Raleigh-based provider of an AI-powered Happiness Platform for relationship marketing, has raised $16M in growth funding led by Harbert Growth Partners. The platform combines AI tools for content creation and multi-channel outreach—email, text, social, surveys, websites, and handwritten cards—with dedicated success specialists to help service-based SMBs nurture client relationships. The capital will accelerate the AI innovation roadmap and expand sales and customer success teams.
AI CRM Tools Draw Growth Capital
The raise brings Levitate's total funding to $71M across seven rounds, following a $13.75M Series C in 2023. It aligns with a CRM market projected to grow from $88.87B in 2025 to $101.83B in 2026 at 14.5% CAGR per The Business Research Company. Competitors like Snappy Kraken ($12.8M raised) focus on financial advisors, while Lawmatics ($10M+) targets legal firms. Levitate's broader vertical coverage and human-AI hybrid addresses gaps in scalable, authentic engagement for SMBs.
SMBs Struggle with Relationship Nurturing
Service businesses in insurance, finance, legal, and healthcare face inconsistent client follow-ups amid rising competition. Traditional DIY marketing tools fail to deliver personal touch at scale, leading to low engagement. Levitate reports its users achieve email open rates 2-3x industry averages through personalized AI-generated content.
Human-AI Hybrid Powers Authentic Outreach
Levitate differentiates with 'Authentic Intelligence,' blending AI for content suggestions and scheduling across channels with one-on-one success specialist support. Unlike pure automation platforms, each customer gets dedicated guidance, ensuring consistent, human-sounding communications. Integrations with CRMs like Wealthbox and Hawksoft streamline workflows for professional services.
As CEO Jesse Lipson explained:
"Rather than eliminating the need for people, Levitate technology enhances human interaction by encouraging thoughtful communication."
Repeat Investors Signal Scaling Confidence
Harbert Growth Partners led the round, with participation from existing backers Bull City Venture Partners and Northwestern Mutual Future Ventures. These firms, focused on B2B SaaS and fintech, have backed Levitate previously and boast exits like Crunchy Data (acquired by Snowflake) and Chime (IPO). The growth-stage bet validates Levitate's $28.8M ARR in 2023 and path to broader adoption.
CRM Market Scales with AI Personalization
The $126B CRM and relationship management TAM grows at 14% CAGR, driven by AI for omnichannel personalization in regulated industries. Levitate serves over 8,000 customers across insurance, real estate, nonprofits, and now healthcare via recent HIPAA compliance. Competitors include Bloomerang (PE-backed for nonprofits) and AgencyBloc (insurance-focused).
Founder Builds on Proven SaaS Exit
Founder and CEO Jesse Lipson created ShareFile, a secure file-sharing SaaS acquired by Citrix in 2011. His experience scaling SMB tools directly informs Levitate's platform, now with 300+ employees and Inc. 5000 recognition three years running, plus #195 on Deloitte Technology Fast 500.
AI Roadmap and Team Expansion Ahead
Post-funding, Levitate plans to hire 120 people, focusing on sales, customer success, and AI development. Recent launches include HIPAA-enabled accounts for healthcare and a Toronto office expansion. Partnerships like Meals on Wheels America underscore vertical momentum.