M3ter, a startup that enables SaaS firms to offer usage-based pricing, just raised $14 million with this 12-slide pitch deck
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- SaaS pricing startup M3ter has raised $14 million in Series A funding.
- The London-based company, founded in 2020, wants to expand its operations in the US.
- M3ter helps companies manage their software spend by employing usage-based pricing.
A startup that enables SaaS companies to offer usage-based pricing to customers has raised $14 million as it prepares to expand its presence in the US.
London-based M3ter, founded in 2020, emerged from stealth last year with a product that enables software businesses to meter their services to partners. Most SaaS models rely on predictable monthly pricing but many companies are now moving towards better managing their costs, making usage-based pricing more attractive, according to M3ter’s CEO Griffin Parry.
“Usage-based pricing is a trend that is already happening so we’re just selling shovels in a gold rush,” Parry told Insider. “It’s also a tailwind that times are tough and the macroeconomic environment is more difficult, pricing becomes more interesting as a strategic lever so people like this model as there is a clear link to value in the customer’s eye.”
In addition, the growth of usage-based pricing has come from a shift in the needs of B2B customers and the rise of automation. Where previously SaaS products might be utilized on the basis of the number of seats, read the number of engineers or developers using, now the end user might be a machine, changing the model for usage.
M3ter’s cloud infrastructure platform plugs into companies’ existing systems via an API and then connects to different integration points like billing, payments, and invoicing, to help businesses better meter their SaaS usage.
Notion Capital led the round with participation from existing investors Insight Partners, Union Square Ventures, and Kindred Capital.
“Market conditions have changed radically but the key thing is we were proactive,” Parry said. “We’re ready to start expanding and accelerating our go-to-market, this is a good position to be bold so we are zigging while others are zagging.”
The company wants to use the new capital to expand its presence in the US where the bulk of its customers are, according to Parry. Currently, the business employs around 50 staff and has plans to build out its team remotely, in the US and elsewhere.
Check out the 12-slide pitch deck M3ter used to raise the fresh funds below: