Munich-based HR tech-startup Personio plans international expansion after raising €103.6M in latest funding round

Hanno Renner_Co-founder and CEO Personio

In the past few years, HR tech startups have gained notable momentum in Europe. One such startup that has made a name for itself is Munich-based Personio. Back in January last year, the startup raised €67.5M in a funding round and fast forward just a year later, it has now secured €103.6M in its latest funding round. Here’s what the company is up to and what it intends to do with the freshly acquired funds. 

Funds to accelerate development and further international expansion

The latest funding round of €103.6M for Personio was led by the company’s existing investor Index Ventures, which has previously supported notable software companies such as Slack, Dropbox and Zendesk to their IPO. Other existing investors like Accel, Lightspeed Venture Partners, Northzone, Global Founders Capital and Picus also participated in the funding round. Meritech is a new investor in the company. 

Alongside accelerating international expansion, Personio will be leveraging this fresh funding to broaden its footprint across Europe. Furthermore, it plans to focus on the further development of its cloud-based software by deepening the product’s core capabilities to cover more processes. 

Hanno Renner, Co-founder and CEO of Personio says, “While the past year has proven difficult for many industries and businesses, it has at the same time accelerated the digitization of small and mid-sized businesses. It has also showcased the important role of HR teams, especially while so many of us continue to work remotely. We are grateful for a strong year in which we could grow to serve over 3,000 European SMEs. By further expanding our platform, we’ll continue to support our customers in tackling their current challenges and beyond.”

We previously interviewed Renner on SC, which you can read here

Making HR processes transparent and efficient

Personio tackles some of the more tedious parts of the HR process, which include contract management, payrolling and more. The company aims to digitise the entire HR lifecycle, from recruiting and managing employees, drawing up contracts, payroll management and more. With the new funding round, the company has also shared its plans for the coming year. 

Personio’s plans for the coming year include deepening its product’s core capabilities to further support HR teams in their daily work. The company will also launch the Personio Marketplace with new integrations in Q1, which is slated to enable workflow automation for users across tools such as Slack, Microsoft Teams and other HR-related software. In addition, it plans to further its growth across Germany, Austria and Switzerland, while doubling down its investments in markets that the business entered in 2020. 

These markets include Spain, UK & Ireland, the Nordics and Benelux. In 2021, the startup will also foray into new markets like France and Italy. It also intends to double its international headcount from 500 to 1000 by the end of 2021, across its four offices in Munich (HQ), Madrid, London and Dublin. The latest funding round for the company also raises its valuation to over €0.83M.

Startups – Silicon Canals

London-based global communications company OneWeb raises funding from SoftBank and Hughes to fund its satellite fleet

OneWeb

In a recent move, Japan’s SoftBank Group and Hughes Network Systems LLC have invested $ 400M (approx €331M) in OneWeb, a London-based global communications company. This brings OneWeb’s total funding to $ 1.4B (approx €1.1B).

It’s worth mentioning that Hughes is an investor through its parent company EchoStar, and also an ecosystem partner, developing essential ground network technology for the OneWeb system.

Neil Masterson, CEO of OneWeb, adds, “We have made rapid progress to re-start the business since emerging from Chapter 11 in November. We welcome the investments by SoftBank and Hughes as further proof of progress towards delivering our goal.”

Fully funded for its first-gen satellite fleet

The capital raised to date positions the Company to be fully funded for its first-generation satellite fleet, totaling 648 satellites, by the end of 2022. With this funding, SoftBank will gain a seat on the OneWeb Board of Directors.

Founded by Greg Wyler, OneWeb’s mission is to deliver broadband connectivity worldwide by offering everyone, everywhere access including to the Internet of Things (IoT) future and a pathway to 5G.

The company’s LEO (Low Earth Orbit ) satellite system includes a network of global gateway stations and a range of user terminals for different customer markets capable of delivering affordable, fast, high-bandwidth, and low-latency communications services. 

Launched 36 satellites

Back in December 2020, OneWeb launched 36 new satellites, built at its Airbus Joint Venture assembly plant in Florida, USA, bringing the Company’s total fleet to 110 satellites, all fully-functioning and benefitting from the International Telecommunication Union spectrum priority.

Filed Chapter 11 bankruptcy

Back in March 2020, the UK company filed for Chapter 11 bankruptcy after failing to secure $ 2B (approx €1.65B) financing from SoftBank. However, a consortium of the UK Government (through the UK Secretary of State for Business, Energy and Industrial Strategy) and Bharti Global invested $ 1B (approx €828M) of new equity as a part of the resurrecting process. 

Pradman Kaul, President of Hughes, remarked, “OneWeb continues to inspire the industry and attract the best players in the business to come together to bring its LEO constellation to fruition. The investments made today by Hughes and SoftBank will help realise the full potential of OneWeb in connecting enterprise, government, and mobility customers, especially with multi-transport services that complement our own geostationary offerings in meeting and accelerating demand for broadband around the world.”

Startups – Silicon Canals

Swedish digital subscription management tool provider Minna Technologies grabs €15.5M funding

Minna Technologies, a Gothenburg-based subscription management software tool, empowers bank customers to take control, manage and switch personal subscriptions within their banking app. This software tool claims to improve digital banking experience and customer engagement for 20 million users. Recently, the startup has secured funding of €15.5M.

Minna wants to expand globally

Minna Technologies bagged Series B funding in a round led by Element Ventures along with the support from Nineyards Equity, MiddleGame Ventures, and Visa. With this round, the overall funding secured by Minna goes to €23M. The Swedish company will use the investment to expand its open banking technology to global banks. In addition to scaling its technology, Minna will bring its services to more users all over the world as there is a demand for its tech from all continents.

Joakim Sjöblom, CEO and co-founder of Minna Technologies, said: “Minna’s tech improves the procedure for banks by simplifying the process, as well as providing an in-demand digital product that consumers are starting to expect from their financial institutions. This new funding will help us take Minna across the globe to reach more banks and customers than before, and we look forward to working with Element Ventures to achieve our next period of growth.”

Michael McFadgen, Partner at Element Ventures, said: “At Element Ventures, we back bold firms that are revolutionising financial services. Joakim and the team at Minna are doing exactly that, by providing banks with the tech, they need to manage the millions of subscriptions their customers have, whilst bringing the switching service in-house to provide additional revenue streams. This is a clear example of the liberating services Open Banking promised us and we’re excited to be part of this journey with Minna.”

Pascal Bouvier, Managing Partner, MiddleGame Ventures said: “We are delighted to partner and invest in Minna Technologies. We strongly believe in a vision where banks develop their checking account offerings into “connected and intelligent” platforms and where retail clients are able to interact in many more ways than in the recent past. Minna delivers this future and allows banks to offer a rich subscription management offering for our digital lives.”

Customers control their subscriptions

Founded in 2016 by Joakim Sjöblom, Jonas Karles, and Marcus Lönnberg, Minna Technologies provides world-leading subscription management solutions to retail banks across Europe. Its customers are claimed to save over €40 million. Minna enables customers to manage subscription services via their bank’s app. They can terminate a subscription just at the push of a button. The platform can also notify customers when a free trial is about to end to prevent them from being charged and helps them find better deals.

The Gothenburg startup has partnered with Lloyds Banking Group. It is extending the in-app journey, which lets customers easily and simply manage their subscriptions in a few clicks, whenever and wherever they want.

Usually, ending a subscription could be time-consuming and expensive for banks but Minna Technologies plays a major role here by reducing the burden on the bank’s call centres. As per the company, a tool like Minna sets the stage for banks to develop their digital banking offering into a marketplace. Furthermore, it is claimed that Minna’s technology offers a new way for legacy banks to offer enhanced digital services and retain their customers in the face of encroachment from challenger banks and big tech.

Growth in digital subscriptions

Demand for Minna’s product has escalated as a result of the growth in the subscription economy, which has increased over 350% since 2012 thanks to the rise of online streaming, entertainment platforms, on-demand shopping platforms and app services. As per reports, an average European spends €333 a month on 11 subscriptions. This is estimated to increase to €508 a month on 17 subscriptions by 2025. IDC predicts that by 2050, 50% of the world’s largest enterprises will focus the majority of their businesses on digitally enhanced products, services and experiences.

Startups – Silicon Canals

Munich-based HR scaleup Personio lands €103.5 million Series D funding and a €1.4 billion valuation

Munich-based Personio, the all-in-one HR platform, today announces approx. €103.5 million of new and preemptive Series D funding in an investment round that values the business at around €1.4 billion. The new funding will accelerate further the scaleup’s international expansion, supporting its ambition of becoming Europe’s leading HR platform for SMEs. It follows a strong…

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EU-Startups

Amazon-backed Deliveroo snaps up pre-IPO funding of €149M from existing investors, valued at $7B

Deliveroo

The competition to gobble up the European market among food delivery companies is getting more fierce day by day. The online food delivery marketplace is becoming a very lucrative industry and is set to grow to a whopping $ 200 billion by 2025. 

A few days back Delivery Hero, a Berlin-based food delivery company raised €1.25B by issuing new shares to institutional investors. Just Eat TakeAway, on the other hand, is making some crucial investments to strengthen its position in the market.

Raised €149M at $ 7B valuation

In a recent move, Deliveroo, a London-based food delivery platform that allows users to order food from local restaurants, secured an additional $ 180M (approx €149M) in a Series H funding round, valuing the business at over $ 7B (approx €5.7B). This brings the total funding raised by Diliveroo to €1.5B. 

The round was led by existing investors — Durable Capital Partners LP and Fidelity Management & Research Company LLC. This funding round comes as Deliveroo is set to hold an initial public offering in the coming months, most probably in April. 

Develop new tech tools

The online food delivery company will use the funding to further invest in expanding delivery-only kitchen sites, allowing more restaurants to take orders from their websites, and increasing the on-demand grocery deliveries and subscription services.

Will Shu, founder, and CEO of Deliveroo said: “This investment will help us to continue to innovate, in developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before.”

Helped local restaurants during COVID

During the COVID-19 pandemic, Deliveroo claims to have helped local restaurants by reducing onboarding fees, developing new services such as Table Service, as well as charging 0% commission on Pick Up orders. Notably, the company also supported the NHS throughout the pandemic, delivering hundreds of thousands of free meals.

Expansion in 2021

Following strong growth in 2020, the company plans to expand its services into around 100 new towns and cities across the UK IN 2021. The cities and towns include – Yeovil, Bangor (Northern Ireland), East Kilbride, King’s Lynn, Scarborough, Llanelli, and Exmouth.

As per the company’s claims, it has been profitable for over six months at the operating level in 2020. 

Furthermore, the company partnered with major supermarket brands including Waitrose, Sainsbury’s, Morrisons, Aldi,and Carrefour to grow its on-demand grocery offering amid the pandemic. 

Over 46,000 restaurants joined the platform in 2020, and the company now works with more than 140,000 restaurant partners globally.

Also, Deliveroo will also be expanding its reach in around 150 of the areas it currently operates in, such as Glasgow and the home counties. 

Carlo Mocci, Chief Business Officer UKI, Deliveroo says: With further lockdown measures now in place across the UK, we want to do everything possible to help households get the food they need and want and play our role to make sure families across the country have a wide selection of amazing food, drinks, and household products to order in as little as 30 minutes.”

Startups – Silicon Canals

GitLab raises $195M in secondary funding on $6B valuation

GitLab has confirmed with TechCrunch that it raised a $ 195 million secondary round on a $ 6 billion valuation. CNBC broke the story earlier today.

The company’s impressive valuation comes after its most recent 2019 Series E in which it raised $ 268 million on a 2.75 billion valuation, an increase of $ 3.25 billion in under 18 months. Company co-founder and CEO Sid Sijbrandij believes the increase is due to his company’s progress adding functionality to the platform.

“We believe the increase in valuation over the past year reflects the progress of our complete DevOps platform towards realizing a greater share of the growing, multi-billion dollar software development market,” he told TechCrunch.

While the startup has raised over $ 434 million, this round involved buying employee stock options, a move that allows the company’s workers to cash in some of their equity prior to going public. CNBC reported that the firms buying the stock included Alta Park, HMI Capital, OMERS Growth Equity, TCV and Verition.

The next logical step would appear to be IPO, something the company has never shied away from. In fact, it actually at one point included the proposed date of November 18, 2020 as a target IPO date on the company wiki. While they didn’t quite make that goal, Sijbrandij still sees the company going public at some point. He’s just not being so specific as in the past, suggesting that the company has plenty of runway left from the last funding round and can go public when the timing is right.

“We continue to believe that being a public company is an integral part of realizing our mission. As a public company, GitLab would benefit from enhanced brand awareness, access to capital, shareholder liquidity, autonomy and transparency,” he said.

He added, “That said, we want to maximize the outcome by selecting an opportune time. Our most recent capital raise was in 2019 and contributed to an already healthy balance sheet. A strong balance sheet and business model enables us to select a period that works best for realizing our long-term goals.”

GitLab has not only published IPO goals on its Wiki, but its entire company philosophy, goals and OKRs for everyone to see. Sijbrandij told TechCrunch’s Alex Wilhelm at a TechCrunch Disrupt panel in September that he believes that transparency helps attract and keep employees. It doesn’t hurt that the company was and remains a fully remote organization, even pre-COVID.

“We started [this level of] transparency to connect with the wider community around GitLab, but it turned out to be super beneficial for attracting great talent as well,” Sijbrandij told Wilhelm in September.

The company, which launched in 2014, offers a DevOps platform to help move applications through the programming lifecycle.

Startups – TechCrunch

Weekly VC Overview: The 80 European startup funding rounds we tracked this week (Jan 11-15, 2021)

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The post Weekly VC Overview: The 80 European startup funding rounds we tracked this week (Jan 11-15, 2021) first appeared on EU-Startups.

EU-Startups

[BioCatch in The Wall Street Journal] Cyber Startups Face Broader Funding Challenge in 2021

Disruption caused by the coronavirus pandemic forced startups and their investors to rethink how they did business in 2020. This year, venture-capital firms say, companies that want to attract funding will have to move beyond established niches, while competing with global rivals and enduring greater scrutiny than in the past.

Read more here.

The post [BioCatch in The Wall Street Journal] Cyber Startups Face Broader Funding Challenge in 2021 appeared first on OurCrowd Blog.

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