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[Funding alert] Barcelona-based Factorial Secures $80Million in Funding

Apr 11, 2024 | By Startup Rise EU

Factorial, the all-in-one business and HR management platform for SMBs globally, secures $80million in funding Go-To-Market investment from General Catalyst, a leading US-based venture capital firm. This financing comes after Factorial closed a heavily oversubscribed $120 million Series C led by Atomico in October 2022, making Factorial a unicorn.

Factorial, the all-in-one business and HR management platform for SMBs globally, secures $80million in funding Go-To-Market investment from General Catalyst, a leading US-based venture capital firm. This financing comes after Factorial closed a heavily oversubscribed $120 million Series C led by Atomico in October 2022, making Factorial a unicorn.

It, as a SaaS business, typically spends upfront cash to sell their product to new customers and grow the business. While the investment is profitable over time, it creates a near term cash outflow for Factorial.

Read also - London-based Avenir Raises €487k in Pre-Seed Funding

Through General Catalyst's investment, Factorial can accelerate growth without putting a dent on its balance sheet or diluting existing shareholders by financing parts of those costs with the investment, while not encumbering the company as General Catalyst owns the downside risk.

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This latest cash injection, complementing the triple-digit millions retained from Factorial's successful 2022 Series C round, fortifies Factorial's position to advance its current growth trajectory with unprecedented flexibility on its balance sheet. This financial reinforcement not only preserves equity but also enables strategic investment in product development and engineering. As a result, Factorial can accelerate the delivery of superior products to its customers.

Factorial CEO and co-founder Jordi Romero said, “As one of the fastest-growing software companies in Europe, we wanted the ability to keep our growth trajectory without ever needing an equity round. This partnership with General Catalyst is exactly what we were looking for. We can focus on building great products and helping more customers without worrying about fundraising, General Catalyst is one of the most reputable tech investors in the world and that made the process very easy. They understand the quality of the business and the market.”

Pranav Singhvi, Managing Director at General Catalyst said, "Having known the Factorial team for years and seen their growth trajectory and the performance of its customer cohorts, General Catalyst strategically chose to invest and turbocharge the company’s go-to-market strategy. This decision aligns with our objective to identify and support innovative ventures with substantial market impact,".

Factorial’s CFO, Moran Laufer said, “We think the sales and marketing funding is something of a game changer for Factorial. Thanks to General Catalyst, we will be able to accelerate our customer acquisition efforts, in a capital-efficient manner, thereby ensuring sustainable fast-paced growth while effectively doubling the return on equity for our investors,”

Atomico Partner Luca Eisenstecken said, “This investment is a strong testament to the resilient, high-quality business, as well as GTM engine, Jordi, Bernat & the Factorial team are building and serves as additional validation of Factorial emerging as a category-leading European technology business, who led the previous Series C financing and joined Factorial’s board as part of that round.

About Factorial

Founded in 2016, Factorial offers people-centric solutions for small and medium businesses, automating processes from Core HR to Expense management, so they have more time to dedicate to the people within their organization. It serves over 10,000 companies across Europe, US and Latin America. it became Europe's newest unicorn in 2022 following a $120 million Series C investment round.

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