- Catalant Technologies has raised more than $100 million by pitching itself as an alternative to consulting giants like McKinsey.
- It raised the last $35 million round from Morningside Group CEO Gerald Chan.
- In its key fundraising slides, it pitches low costs for clients and freedom for consultants.
When Catalant Technologies' founders went to Silicon Valley in the early 2010s to raise money for their startup, investors told them the company wasn't mature enough for VC funding.
Two exceptions were Mark Cuban and Morningside Group CEO Gerald Chan, who split the seed round. Catalant has now raised more than $100 million, most recently a $35 million Series F round in April led by Morningside.
Investors are now pouring millions into platforms like Catalant that connect companies to independent advertising and consulting professionals, a need that's growing as people quit in the pandemic.
Catalant CEO Pat Petitti said his platform helps companies that can't afford pricey firms like McKinsey or don't want long-term retainers and lets consultants and clients decide who they work with. He and his partners drew on a 2013 Harvard Business Review article that predicted the consulting industry would be disrupted as big firms seek small-scale project work.
Petitti said he went directly to Chan to lead the Series F, describing the billionaire as a friend and mentor whom he met at Harvard.
Below are the slides he used to help secure Morningside's investment.
Catalant claims it's growing far faster than big firms like Deloitte and that its teams can handle up to twice as much work as traditional consultants.
Catalant says it saved a consumer goods client $45 million in administrative expenses by using a remote team of freelancers.
The company also says it caters to small and midsized businesses.
Catalant says its model lets consultants work remotely and choose which projects they work on.
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