WorkerThe Barcelona-based “Unicorn” company, which provides the HR all-in-one platform in the cloud for small and medium-sized companies, has picked up an unacceptable group (without ownership rights) of $ 120 million of General Catalyst-money that she will invest in one specific field: go to the market, “or GTM, the term hope used in medium sales expenses.
Initially, the company cut its teeth in a breakthrough for human resources services that came with the social distance of the Covid-19 epidemic, through a “free” version of the product that received more than 60,000 users. Shortly later, it was only paid, and the CEO and co -founder told Jordi Romero Techcrunch in an interview that it had witnessed that customers and revenues grow six times last year, reaching 13,000 paid companies. Factorial will use the latest cash injection to take advantage of this momentum.
Factorial news about raising more money to turbo sales and marketing is coming, such as chance, at a time when human resource sales and marketing activities suddenly in the spotlight – although they are not particularly glowing: Deel and Quiping, are largely big startups with a history of holiness and aggressive competition against each other in the middle of the main offer. Rippling del, claiming that she worked with an Intel spy on customers, sales and marketing strategies. Del denies these allegations.
From what we understand, the worker conducts an internal investigation to make sure that “there is nothing happens”, that is to Her work, this reminds us of allegations in the case.
Getting money to go to the market-as Factorial is now-is one of the ways to develop the sales track. However, unfortunately between Saas companies, as well as overfishing and other aggressive tactics to secure talents, bullets and strategy. But with this new $ 120 million factor, it is clear that he has a window to put itself away from this drama and win the business.
To be clear, this money is no Investing in stocks, as it is not the classic form of adventure debt. The funds come out of the general “Customer Value” fund. It is actually an inverted loan (there is no share in the stocks) that the worker will regain his cash flow-specifically a total profit from customers who helped GC’s money to get it.
The money collected by the worker over the years was to increase the shares – the last round was $ 120 million with a billion dollars in evaluation in 2022 – he did not touch. Although GC does not get ownership rights to investment, it has created a relationship that could lead to a future round of stock financing.
From what we understand, the employee is not currently looking to raise a large primary stock tour soon. It is more likely that it will collect a secondary tour to give investors and employees earlier some liquidity.
As Romero described it, the Customer Value Strategy in General Kumlist works somewhat like the stock box (incomplete share of stocks). It surpasses a number of startups that want to boost GTM, and track performance across the wallet, similar to investing stocks, which means that there are no guarantees as you were in debt. Some may drown in the pool, some may swim, and the latter is the GC bet.
“Unlike the debts, the company does not have any risks on the downside as GC carries the risk of the downside if the investment performance in the market is not,” said Pranav Singhvi, MD at General Catalyst who reached the idea and runs the box, Techcrunch via email. He added that the model company that gets money in this way is the late or public stage-with a “clear consistency” in sales and marketing. (Singfy also talked about the value of the customer in this podcast in October 2024.)
Factorial has now borrowed $ 200 million from GC under these conditions after obtaining $ 80 million under the same conditions April 2024.
Sanghvi said that GC now has assets under management in the range of “10 numbers” (i.e. billions) of customer value efforts, which have lasted for four years until now. Hundreds of millions of dollars are usually published in one month in Saas, directly to the consumer, Find Sech, games and other types of companies. “We believe that this is a major part of how companies are financing their growth in the future,” he added.
