Simply a few weeks after saying $22 million in fundraising, Paris-based startup studio Hexa is increasing past its studio mannequin to associate with later stage corporations which have already discovered product-market match.
Referred to as Hexa Scale, with this program, the startup studio is on the lookout for B2B corporations that already generate some vital recurring income (ideally from €1 to €10 million yearly), however which can be going through some progress points.
These corporations could have raised a seed spherical and even a Collection A spherical, however they’re now rising at a linear tempo. That’s when Hexa plans to step in, inject capital and assist relating to operations, worldwide growth, product and advertising.
In 2012, Y Combinator co-founder Paul Graham wrote an essay referred to as ’Startup = Progress’. In some ways, that essay has formed the narrative across the preferrred progress trajectory for a startup. In response to him, as a substitute of rising income by a certain quantity, startup founders ought to concentrate on a goal progress charge and attain that focus on.
That’s as a result of you may simply evaluate a progress charge quarter over quater, 12 months over 12 months. Another excuse why specializing in a progress charge could be useful is that an organization grows exponentially if it could actually keep the identical progress charge over time.
And VCs like to again startups with an exponential trajectory. An organization that grows at a linear tempo may have a tough time elevating additional funding spherical (regardless that there’s nothing incorrect with linear progress by itself). On the identical time, that firm additionally seemingly has a giant workforce with costly working prices.
As an alternative of letting these corporations in that bizarre spot, Hexa needs to assist them develop into startups with exponential progress once more. Augustin Celier shall be in command of this new exercise. He beforehand co-founded a number of startups — Uptime, Shuffle, Marc&Aurèle and CoursdePhilo.
“I’ve been constructing corporations for the final 15 years. For my final enterprise, we ended up in a financing no-man’s land, which led us to a hearth sale. Like many, we have been confronted with very slim help choices: to remain on the VC observe, you want steady hypergrowth, whereas you should accept gradual, linear progress to go down the self-financing or Non-public Fairness route,” Celier stated in a press release. Hexa Scale represents a 3rd path.
Whereas Hexa is best often known as the startup studio that spawned some profitable B2B SaaS startups like Entrance, Aircall and Spendesk, this isn’t the primary time Hexa is later stage corporations. It has already partnered with Yousign, which now processes greater than 5 million e-signatures per 30 days for 17,000 clients.
