Round2 Capital, an Austrian investment fund for growth financing, has invested 7 figures in 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 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, announced: “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!“
Round2 Capital is unique among investment funds. The Vienna-based company 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, 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 Avallain Magnet for the corporate training and education market.
About Round2 Capital
Round2 Capital is a fast-growing European investment firm that manages 30 million euros worth of assets. The company is a strong partner for European scale-ups that have digital and sustainable business models. Headquartered in Vienna since 2017, Round2 has been the pioneer of revenue-based financing in Europe. The Company is active in several European countries with a focus on Germany, Switzerland, Austria and the Nordics. Up till now Round2 Capital invested in 13 different companies, Avallain being its latest investment. With this third investment in Switzerland, Round2 Capital further strengthens its market position.
Founded in 2002, Avallain is an award-winning Swiss EdTEch and eLearning solutions provider that works with leading premium brands worldwide. The company’s mission is to unlock human potential through innovative technology-enhanced education and to enable businesses and organizations to create highly interactive e-Learning content solutions. Co-founders and EdTech pioneers Ursula Suter and Ignatz Heinz lead the international Avallain team, which spans five continents and has staff members from over 14 countries. The company is an active participant in the UN Global Compact and aims to advance the SDGs by achieving a zero-carbon footprint and contributing to positive social change in Sub-Saharan Africa through its Avallain Foundation.
Picture: Ursula Suter and Ignatz Heinz ©Avallain AG
Head of Marketing & Sales