TLDR:
Barcelona-based Factorial secures €74.5 million Go-To-Market investment from General Catalyst to preserve equity and fuel growth.
- Factorial, an HR management platform for SMBs, secures €74.5 million investment from General Catalyst.
- The investment will allow Factorial to accelerate growth without needing another equity round.
Article Summary:
Factorial, a Barcelona-based all-in-one business and HR management platform for SMBs, has announced the closing of a €74.5 million Go-To-Market investment from General Catalyst. This investment comes after Factorial closed a heavily oversubscribed $120 million Series C round in October 2022, making Factorial a unicorn company.
As a SaaS business, Factorial typically spends upfront cash to acquire new customers and grow the business, leading to near term cash outflows. The investment from General Catalyst will allow Factorial to accelerate its growth without compromising its balance sheet or diluting existing shareholders. This investment also reinforces Factorial’s position to advance its growth trajectory and invest strategically in product development and engineering.
Factorial’s CEO, Jordi Romero, expressed satisfaction in the partnership with General Catalyst, highlighting the ability to focus on building great products and helping more customers without the need for fundraising. The investment is seen as a game-changer for Factorial’s sales and marketing efforts, enabling sustainable fast-paced growth and doubling the return on equity for investors.
Overall, the investment from General Catalyst is viewed as a strategic move to turbocharge Factorial’s go-to-market strategy and support sustainable growth while preserving equity and enabling product innovation. This financial reinforcement positions Factorial as a category-leading European technology business with a promising future.
