SaaS to assist mid-sized corporations’ monetary planning with real-time data and native collaboration isn’t the sexiest startup pitch below the solar however it’s one which’s swiftly netted Abacum a bunch of notable backers — together with Creandum, which is main a $7M seed spherical that’s being introduced immediately.
The rosters of current traders additionally collaborating within the spherical are Y Combinator (Abacum was a part of its newest batch), PROFounders, and Ok-Fund, alongside with angel traders equivalent to Justin Kan (Atrium and Twitch co-founder and CEO); Maximilian Tayenthal (N26 co-founder and co-CEO & CFO); Thomas Lehrman (GLG co-founder and ex-CEO), Avi Meir (TravelPerk co-founder and CEO); plus Jenny Bloom (Zapier CFO and Mailchimp ex-CFO) and Mike Asher (CFO at Neo4j).
Abacum was based final 12 months in the midst of the COVID-19 international lockdown, after what it says was round a 12 months of “deep research” to feed its product growth. They launched their SaaS in June 2020. And whereas they’re not disclosing buyer numbers at this early stage their first shoppers embrace a variety of scale-up corporations within the US and in Europe, together with the likes of Typeform, Cabify, Ebury, Garten, Jeff and Talkable.
The startup’s Spanish co-founders — Julio Martinez, a fintech entrepreneur with an funding banking background, and Jorge Lluch, a European Space Agency engineer turned CFO/COO — noticed a possibility to construct devoted software program for mid-market finance teams to present real-time entry to data by way of native collaborative that plugs into key software program platforms utilized by different enterprise items, having felt the ache of an absence of entry to real-time data and boundaries to collaboration in their very own skilled expertise with the finance operate.
The thought with Abacum is to substitute the necessity for finance teams to manually replace their fashions. The SaaS robotically does the updates, fed with real-time data via direct integrations with software program utilized by teams dealing with features like HR, CRM, ERP (and so on) — empowering the finance operate to collaborate extra simply throughout the enterprise and bolster its strategic decision-making capabilities.
The startup’s gross sales pitch to the goal mid-sized corporations is multi-layered. Abacum says its SaaS each saves finance teams time and allows faster-decision making.
“Prior to using Abacum, finance analysts in our clients were easily spending 50% to 70% of their time in manual tasks like downloading files from different systems, copy&pasting them in massive spreadsheets (that crash frequently), formatting the data by manually adding and removing rows, columns and formats, connecting the data in a model prone to manual error (e.g. vlookups & sumifs),” Martinez tells TechCrunch. “With Abacum, this entire manual part is automatically done and the finance professionals can spend their time analyzing and adding real value to the business.”
“We enable faster decisions that were not possible prior to Abacum. For instance, some of our clients were updating their cohort analysis on a quarterly basis only because the associated manual tasks were too painful. With us, they’re able to update the analysis weekly and take better decisions as a result.”
The SaaS additionally helps choices in one other manner — by making use of machine studying to enterprise data to generate estimates on future efficiency, offering an AI-based reference level primarily based on historic data that finance teams can use to inform their assumptions.
And it aids cross-business collaboration — permitting customers to share and collect data “easily through workflows and permissions”. “We see that this results in faster and richer decisions as more stakeholders are brought into the process,” he provides.
Martinez says Abacum selected to give attention to mid-market finance teams as a result of they face “more challenges and inefficiencies” vs the smaller (and bigger) ends of the market. “In that segment, the finance function is underinvested — they face the acute complexities of scaling companies that become very pressing but at the same time they are still considered a support function, a back-office,” he argues.
“Abacum makes finance a strategic function — we deliver native collaboration to finance teams so that they become the trusted business partner they want to be. We also see that the pandemic has accelerated the need for finance teams to collaborate effectively and work remotely,” he provides.
He additionally describes the mid market section as “fairly unpenetrated” — claiming many corporations don’t but having an answer in place.
While rivals he factors to when requested about different gamers within the house are lengthy within the tooth in digital phrases: Adaptive Insights (2003); Host Analytics (2001); and Anaplan (2008).
Commenting on the seed spherical in an announcement, Peter Specht, principal at Creandum, added: “The financial planning processes in many companies are ripe for disruption and demand more automation. Abacum’s slick solution empowers finance teams to be more collaborative, efficient and better informed with access to real-time data. We were impressed by their user-friendly product, the initial hiring of top talent, and crucially the strong founders and their extensive operational experience — including as CFOs and entrepreneurs who have experienced the problem first-hand. We are delighted to be part of Abacum’s journey to empower global SMEs to bring their financial operations to new levels.”
Abacum’s seed financing will probably be ploughed into product growth and progress, per Martinez, who says it’s targeted on wooing finance teams within the US and Europe for now.