Spigit Acquires Kindling, Shrinking Fragmented Innovation Management Market

3 minute read
Dom Nicastro avatar

Two platforms designed to encourage crowd sourced innovation and ideation are coming together today with Spigit's acquisition of Kindling.

San Francisco-based Spigit is acquiring New York City-based Kindling to grow its marketshare, Spigit CEO Scott Raskin told CMSWire. Terms of the deal were not disclosed.

Spigit technology is designed to help organizations take a structured approach to innovation. It helps them generate, capture and develop ideas and then identify which of these ideas provide the best opportunities. Kindling is a competing idea management and innovation software.

Scott Raskin
Scott Raskin

"Kindling — think of a spark of an idea," said Raskin, who now oversees 140 employees. "It's a team-based idea management product similar to Spigit, but it's more team-based within an enterprise whereas Spigit is more about an enterprise as a whole. It's got an incredible customer base and some real talent."

Both Spigit and Kindling were included in Forrester's Wave for innovation management solutions last year: Spigit as a leader, Kindling as a strong performer.

Spigit + Mindjet - Mindjet

Spigit has grown through acquisition before, although last time it was the company that was acquired. 

In 2013, Spigit was acquired by Mindjet Corp., then headed by Raskin, for an undisclosed sum. Mindjet became the parent company of Spigit, and Raskin retained his role as CEO. 

Learning Opportunities

Five months ago, Spigit's parent company sold its MindManager business unit — which is used for mind maps, business diagrams, infographics and other types of data visualization — to Corel Corp. and renamed itself Spigit Corp.

Kindling's Spark

Raskin sees the Kindling acquisition as an opportunity to consolidate a market that he calls "very fragmented." 

"There are quite a few small players and medium-size players pushing in, and we’re making a big investment both in technology and growing into the market because it plays such a critical role in the businesses we serve," Raskin said. "It allows us to expand more rapidly in the marketplace, highlights us as a market consolidator, provides us with an opportunity to grow marketshare faster and increases our investments to make the Spigit platform better."

Innovation management software drives a culture of innovation, helps customers define wants and needs and gives product engineers options to explore products and product enhancements.

    spigit dashboard

    Spigit officials said 2016 sales exceeded 2015 sales by a 39 percent, with growth across the Americas, Europe and Asia-Pacific. They plan to continue to invest in sales and marketing worldwide, research and development and development of the Spigit customer success team.