We’ve been seeing no shortage of big VC funding rounds for SMB-facing tech companies despite all the talk about a long cold winter ahead for those looking to raise money.
The latest recipient is SumUp. This decade-old, UK-based fintech provides point-of-sale technology to about 4 million SMBs worldwide. The company has raised a 590 million euro ($624 million) debt/equity round, giving it an 8 billion euro valuation. The company has raised a cumulative total of $1.6 billion.
As with most rounds this large, some big names in VC funding are involved. In this case, Bain Capital, BlackRock (or funds managed by), and others.
Last week, we saw Personio, another decade-old European tech company focused on the SMB market, also bag a huge round. Personio raised a US$200 million Series E.
What the two companies have in common, beyond addressing SMBs, is a track record. While blitz-scaling unicorns are out of favor (temporarily I would argue), companies that have been growing steadily and addressing real small-business pain points seem to be doing OK. Especially if they can make a good case that they will be an ally to SMBs in the coming expected downturn.
This was the message last week from Personio and its investors. And SumUp’s co-founder strikes a similar tone.
“SumUp has received consistent support from the global investment community in our mission to help small merchants succeed,” said SumUp Co-founder and CFO Marc-Alexander Christ. “We stand by our merchants whatever the circumstance. Whether that be COVID or macroeconomic uncertainty. Our ability to organically grow 60+% through the challenges of recent years shows that we are there for merchants when they need support most.”
A Financial Super App for SMBs
SumUp has evolved in the decades since its launch from a simple payments starter kit for SMBs to a “financial services super app.” The company gives SMBs a free business account and card, an online store, plus an invoicing solution. SumUp also enables in-person and remote payments through its point-of-sale terminals and registers.
The company has about 3,000 employees worldwide. And it operates in 35 counties. The company has made some acquisitions over the years to expand its point of sale footprint. These include Goodtill, Tiller, and Fivestars.
“The funds we’ve raised will enable us to continue to build out our product ecosystem, expand into new markets, pursue value-adding acquisitions,” Christ said. “And continue leveling the playing field for small merchants at a global scale.”
