Challenger business bank Qonto raises $115 million round led by Tencent and DST Global

French startup Qonto has raised a $115 million Series C funding round led by Tencent and DST Global. Today’s news comes a few days after another French fintech startup Lydia raised some money from Tencent.

Existing investors Valar and Alven are also participating in today’s funding round. TransferWise co-founder Taavet Hinrikus and Adyen CFO Ingo Uytdehaage are also joining the round. Qonto says that it represents the largest funding round for a French fintech company.

Qonto is a challenger bank, or a neobank, but for B2B use cases. Instead of attracting millions of customers like N26 or Monzo, Qonto is serving small and medium companies as well as freelancers in Europe.

According to the startup, business banking in Europe is broken. The company thinks it can provide a much better user experience with an online- and mobile-first product.

The company has managed to attract 65,000 companies over the past two years and a half. The product is currently live in France, Italy, Spain and Germany. In 2019 alone, Qonto has managed €10 billion in transaction volume.

With today’s funding round, the company plans to double down on its existing markets, develop new features that make the platform works better in each country based on local needs and hire more people. The team should grow from 200 to 300 employees within a year.

Qonto obtained a payment institution license in June 2018 and has developed its own core banking infrastructure. Around 50% of the company’s user base is currently using Qonto’s own core banking system. Others are still relying on a third-party partner.

Moving from one back end to another requires some input from customers, which explains why there are still some customers using the legacy infrastructure. Over the coming months, Qonto plans to launch new payment features that should convince more users to switch to Qonto’s back end.

Even more important, Qonto plans to obtain a credit institution license, which could open up a ton of possibilities when it comes to features and revenue streams. The company says that it should have its new license by the end of the year.

For instance, you could imagine being able to get a credit card, apply for an overdraft and get a small loan with Qonto.

Compared to traditional banks, Qonto lets you open a bank account more easily. After signing up, Qonto offers a modern interface with your activity. You can export your transactions in no time, manage your expenses and get real-time notifications. Qonto also integrates with popular accounting tools.

When it comes to payment methods, Qonto gives you a French IBAN as well as debit cards. You can order physical or virtual cards whenever you want, customize limits and freeze a card. Qonto also supports direct debit and checks. Like many software-as-a-service products, you can also manage multiple user accounts and customize permission levels.

Personio, the German HR platform for SMEs, raises $75M Series C at a $500M valuation

Personio, the Germany-founded HR platform for SMEs, has raised $75 million in Series C funding in a round led by Accel. I understand the investment values the company at around $500 million.

Also joining is Lightspeed Venture Partners, alongside Lars Dalgaard (the founder and former CEO of SuccessFactors). Existing investors Index Ventures, Northzone, Rocket Internet’s Global Founders Capital, and Picus Capital followed on.

The Series C brings Personio’s total funding to $130 million since launching in 2015. The additional capital will help support the company’s expansion into the U.K. and Ireland, which is also being announced today. This will see Personio establish a new office in London to better serve clients in the U.K. and Ireland.

Combining human resources, recruiting and payroll into a single platform, Personio bills itself as a “HR operating system” for small and medium-sized companies (SMEs) ranging from 10 to 2,000 employees.

The cloud-based software is designed to power all of a company’s people processes via the product’s own growing functionality or through its ability to integrate with third-party software.

To that end, Personio says its customer base has tripled in the past twelve months, and says it now serves almost 2,000 customers in more than 40 countries. In the same period, the number of employees at Personio has more than doubled to over 350. That figure is set to reach 700 employees by the end of 2020.

Along with traditional SMEs, Personio has naturally found a home amongst startups. “The strong growth of the last four years in German-speaking countries has shown that there is a great demand for HR software in SMEs,” Personio co-founder and CEO Hanno Renner tells me.

“42% of their time is currently spent on administrative tasks, according to a recent, as yet unpublished study from Germany. Personio automates repetitive tasks and thus gives HR staff time for value-adding tasks. This is an invaluable advantage that has already convinced several U.K. customers such as Raisin and millimetric.”

Israel’s cybersecurity startup scene spawned new entrants in 2019

As the global cybersecurity market becomes increasingly crowded, the Start Up Nation remains a bulwark of innovation and opportunity generation for investors and global cyber companies alike. It achieved this chiefly in 2019 by adapting to the industry’s competitive developments and pushing forward its most accomplished entrepreneurs in larger numbers to meet them.

New data illustrates how Israeli entrepreneurs have seized on the country’s reputation for building radically cutting-edge technologies as the number of new Israeli cybersecurity startups addressing nascent sectors eclipses its more traditional counterparts. Moreover, related findings highlight how cybersecurity companies looking to expand beyond their traditional offerings are entering Israel’s cybersecurity ecosystem in larger numbers through highly strategic acquisitions.

Broadly, new findings also reveal the Israeli cybersecurity market’s overall coming of age, seasoned entrepreneurial dominance and greater appetite for longer-term visions and strategies — the latter of which received record-breaking investor backing in 2019.

Breaking records

Soft Robotics raises $23 million from investors including industrial robot giant FANUC

Robotics startup company Soft Robotics has closed its Series B round of funding, raising $23 million led by Calibrate Ventures and Material Impact, and including participation from exiting investors including Honeywell, Yahama, Hyperplane and more. This round also brings in FANUC, the world’s largest maker of industrial robots and a recently announced strategic partner for Soft Robotics .

The company said in a press release announcing this latest round of funding that the round was oversubscribed, which suggests it isn’t looking to glut itself on capital investors, given that this $23 million follows a similarly sized $20 million round that closed in 2018 which it also referred to as “oversubscribed.” Prior to that, Soft Robotics had raised $5 million in a Series A round closed in 2015. It has plenty of large, global clients already, so it’s probably not hurting for revenue.

Soft Robotics is focused on developing robotic grippers that, as you might’ve guessed from the name, make use of soft material endpoints that can more easily grip a range of different objects without the kind of extremely specific and tolerance-allergic complex programming that’s required for most traditional industrial robotic claws.

With its 2018 funding raise, Soft Robotics said that it was expanding further into food and beverage, as well as doubling down on its presence in the retail and logistics industries. This round and its new partnership with FANUC (which involves a new integrated system that pairs its mGrip robotic gripper with a new Mini-P controller, all with simple integration to FANUC’s existing lineup of industrial robots) will give it strategic and functional access to what is the most influenentioal industrial robotics company in the world.

This round will specifically help Soft Robotics spend on growth, looking to increase its variability even further and work on expanding its food packaging and consumer goods applications, as well as diving into e-commerce and logistics – specifically to help automate and improve the returns process, a costly and ever-growing challenge as more retail moves online.