Round2 Capital, an Austrian investment fund for growth financing, has invested a seven-figure sum in the Swiss EdTech scale-up Avallain. Round2 Capital is among Europe’s premier revenue-based financing ventures. This innovative approach to financing, which focuses on growth-stage companies, is easier to obtain than bank loans and offers more favourable conditions than venture capital. Round2 Capital invests in leading technology and software scale-ups in Europe. Avallain, the award-winning e-learning and edTech scale-up, plans to invest the funds in its product development pipeline for corporate use cases and in its international market expansion efforts.
Following Round2 Capital’s deepening of its two-year partnership with the Munich-based cyber security company Myra Security at the start of November through a multi-million investment, CEO and Co-Founder Dr Christian Czernich now announces a further seven-figures of funding. The new member of the Round2 Capital family is the Swiss company Avallain, which offers state-of-the-art e-learning and EdTech solutions for customers such as Oxford University Press. Avallain AG was advised by i5invest, who view this investment as an important step towards scaling Avallain’s new product for corporate clients.
Christian Czernich, CEO & Co-Founder Round2 Capital Partners, says: “Avallain is a leading European player in the EdTech market. With this investment, we add a third Switzerland based company to our portfolio. Founders Ursula Suter und Ignatz Heinz show a strong track record of independently building their business and establishing an impressive customer base, particularly in the academic market. We are happy to provide the growth capital to expand their offerings to the corporate world!”
Vienna-based Round2 Capital represents a new breed of alternative financing providers for tech companies and has been a pioneer of revenue-based financing in Europe. Revenue-based finance, which is widely used in the U.S.A. for financing technology and software companies, was introduced by Round2 Capital in Europe in 2017. Several other financing providers in the UK and Germany have since followed suit. This innovative financing model helps to finance scale-up companies without personal guarantees or rigid repayment schedules and without dilution of ownership. In return, Round2 Capital receives a small portion of the company’s revenue until a predefined ceiling or cap is reached. Round2 Capital finances leading European technology scale-ups in this way. Avallain is Round2’s 13th investment within the European market.
Ursula Suter, Co-Founder of Avallain AG, states: “Both the long-term trends and the immediate COVID situation demonstrate the need for and fast-growing adoption of advanced edtech solutions such as those we have offered since 2002. Our tools offer tremendous potential benefits that our market and our audience are greatly in need of. The additional financing will provide a powerful boost for our market rollout of these products. Round2 is an attractive option for founders like us who strive to achieve significant growth without prematurely diluting our brand or ceding control.”
Avallain will use the investment to extend its offerings to corporate clients and to scale its “Avallain Magnet” product for the corporate training and education market.