Factorial, the all-in-one business, and HR management platform for small and medium businesses (SMBs) globally, has announced the closing of an $80 million Go-To-Market investment from General Catalyst’s Customer Value strategy. As part of this strategic partnership, General Catalyst will cover a substantial portion of the expenses associated with acquiring new customers. This strategic investment is intended for product development and engineering to accelerate the delivery of superior products to its customers.
About Factorial
Factorial is a Barcelona-based HR tech company offering an all-in-one business and HR management platform for SMBs globally. Founded in 2016, Factorial automates core HR processes, empowering companies to focus on their people and drive organisational success.
With its innovative solutions and unwavering commitment to customer success, Factorial has become a trusted partner for over 10,000 companies worldwide, helping to revolutionise HR management and fostering growth and innovation in the SMB ecosystem.
Unwavering growth trajectory
Factorial has experienced remarkable growth, expanding its customer base from seventy to over 10,000 since 2019 and achieving unicorn status in 2022. This latest infusion of $80 million in Go-To-Market investment from General Catalyst will allow Factorial to accelerate its growth momentum and achieve cash-generative operations with minimal constraints on its balance sheet.
Strategic partnership with General Catalyst
The partnership with General Catalyst represents a significant milestone for Factorial, enabling the company to leverage General Catalyst’s expertise and resources to scale its go-to-market initiatives effectively. By financing parts of its upfront cash expenditures with the investment, Factorial can accelerate customer acquisition efforts while preserving equity and minimising dilution for existing shareholders.
Future growth and innovation
Factorial’s latest funding round, coupled with the substantial capital retained from its oversubscribed $120M Series C round in 2022, positions the company for accelerated growth and innovation. With unprecedented flexibility on its balance sheet, Factorial plans to invest strategically in product development and engineering, ensuring the delivery of enhanced solutions to its customers.
Visionary leadership and investor confidence
Jordi Romero, CEO, and co-founder of Factorial, expressed confidence in the partnership with General Catalyst, highlighting the firm’s reputation and understanding of the business’s quality and market dynamics, “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.”
Similarly, General Catalyst’s Managing Director, Pranav Singhvi, emphasised the strategic alignment between General Catalyst and Factorial’s growth objectives, “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.”
Moran Laufer, Factorial’s CFO added, “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.”
Luca Eisenstecken, Partner at Atomico, who joined Factorial’s board after leading the previous oversubscribed $120M Series C round in 2022, lauded Factorial’s emergence as a high-quality business, reflecting the confidence and validation from investors, stating, “This investment is a strong testament to the resilient, high-quality business, as well as GTM engine, [that] Jordi, Bernat & the Factorial team are building and serves as additional validation of Factorial emerging as a category-leading European technology business.”
