The Spanish Spanish Unicorn obtains € 110m from General Catalyst, with which it will boost its marketing and sales area
Factorialthe Spanish unicorn specialized in the digitalization of HR processes, has received 120 million dollars (110 million euros) investment by business management software General Catalyst. The operation was carried out through non -dilutive financing, which means that factorial has not had to give in share participation in exchange for money.
Factorial will reinforce your sales and marketing area
It is important to note that this operation is not a capital investment and not a risk debt, but that the money contributed by General Catalyst comes from its background “Customer Value” (or customer value). This makes it a non -dilutive loan that factorial will reimburse using a part of the cash flow generated with the clients that it achieved thanks to the investment of General Catalyst.
General Catalyst's system is based on delivering money to startups that wish to boost their GTM without asking for actions. Although they monitor the performance of these startups, they do not receive shares or percentage of the company as in the traditional risk capital. Likewise, they assume the risk of loss, waiting for the success of some startups to generate enough returns to compensate for the losses of those who do not achieve it.
Pranav SinghviGeneral Director of General Catalyst, explained: «Unlike debt, the company has no risk of loss, since GC assumes this risk if the initial investment does not give results».
Thus, General Catalyst has raised his investment of the 80 million dollars Up to 200 millionunder these terms. This has been announced by Factorial through its LinkedIn profile:
Factorial is scheduled Invest the money obtained in your GTM or “Go to Market” area. That is, in their expenses and actions related to sales and marketing activities. One way to boost their client collection strategies to reinforce their positioning.
A strategic movement that will benefit the Spanish unicorn at a time when Two great competitors, Deel and Rippleing, are worn out in a legal contest. This is because Rippleing has sued Deel, accusing her of stealing information about customers and sales and marketing strategies. Something that denies.
Photo: Factorial LinkedIn
