Factorial consolidates itself among the most valuable scale

Factorial consolidates itself among the most valuable scale-ups in Europe

The Catalan technology company raises 150 million to expand into key markets and accelerate AI projects

Factorial continues to expand its growth capacity. The Barcelona-based platform specializing in general management for companies has raised a Series D investment round of 150 million dollars. With this new operation, led by the American fund General Catalyst, the Catalan technology company multiplies its valuation to 2.5 billion dollars. This, years after achieving the title of unicorn – startups valued at over 1 billion dollars –; and consolidates itself among the twenty largest on the continent. Read it all

after achieving the title of unicorn –startups valued at over 1 billion dollars–; and consolidates itself among the twenty largest on the continent.

With this round General Catalyst enters the Catalan technology company's capital for the first time, after having participated through non-dilutive investments. Until now, the investment vehicle provided approximately 200 million euros dedicated to acquiring new clients. The fund was already providing capital to Factorial through the Customer Value Fund, a non-dilutive investment – which does not alter the company's capital – that until now was around 200 million euros. Atomico, which already led Factorial's previous capital injection, and Four Rivers also participated in the round.

In addition to Series D, the company founded by Jordi Romero and Bernat Farrero has negotiated with General Catalyst an extension of this line of resources to exceed 700 million dollars committed, available until 2030. Through this model, the business management platform invests in acquiring new clients.

According to the emergent, the new investment round will serve to underpin the development of the new artificial intelligence capabilities offered by its platform, as well as to finance inorganic growth –company acquisitions– in its core, mostly European, markets. Unlike other start-ups and scale-upstech companies, which need to raise new capital to ensure survival, Factorial claims to have "almost unlimited room" in its coffers. "We haven't needed rounds to continue operating for a long time," explained Romero in a meeting with journalists. In fact, the money raised in the last round, a Series C of 120 million dollars led by the British fund Atomico, has not been completely spent. However, raising new dilutive investment is "a good way to use the company's capital." And even more so if it is in a position to make acquisitions, especially in Europe.

According to Romero, the transition to artificial intelligence has opened a "special moment" in its sector, as "investors don't quite know who will fall among the winners and who among the losers" of the process. Venture capital, therefore, "is less active," but it trusts Factorial because it no longer sees it solely as a software-as-a-service (SaaS) offering, but as an artificial intelligence company. "We have found the path from SaaS to an agent-based support for companies," reflected the founder and CEO, through the two tools Factorial One and Clon.

From this privileged position, Factorial plans to expand its purchasing and acquisition strategy. According to Romero, the tension in the venture capital market for tech companies means there are "many good companies" without a clear medium-term path. In this regard, the Barcelona-based company will dedicate part of its capital to "buying companies," to boost its growth with those valuable tools, platforms, and talent in its strategic European markets. The emergent company already completed the acquisition of the Galician company YepCode in mid-May, and the top executive already warns that they will go on buying sprees in the short and medium term.

Regarding results, Romero has assured that accounting profit will come solely thanks to its "recurrence model." The business "has a lot of scale," with more than 16,000 corporate clients, and can already "generate a fairly positive cash flow" with the current tools. The founder has not dared to set a date for achieving a positive accounting result, although he has maintained that a balance sheet with profits is "very close." The definitive pace will be determined by acquisitions, and the investment these acquisitions require. The only requirement, in fact, is the objective returns: "We want every euro we invest in growth to come back multiplied."