This startup uses a cohort model to help companies accurately predict future revenues. Check out the 17-slide pitch deck Ramp used to raise $5 million.
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- UK-based Ramp has secured a $5 million seed round from AlbionVC and Eurazeo.
- The startup’s SaaS tool helps companies forecast customer revenue, and move away from spreadsheets.
- Check out the 17-slide deck used to raise the fresh funds.
A startup that wants to make revenue predictions much more accurate using machine learning just raised $5 million in fresh funds.
London-based Ramp, which was founded in 2018, wants to move teams away from financial modelling methods that are usually conducted on spreadsheets. Ramp believes these can be riddled with guesswork and yield inaccurate revenue projections.
The founding team saw that “finance teams lacked the tools and skills to forecast quickly and accurately,” which had ramifications such as “missed targets, incorrect resource allocation, and wasted management time or millions wasted in inefficient marketing spend,” said cofounder and CEO Dan Marcus.
To combat this, Ramp developed a web-based SaaS tool that conducts daily forecasts and uses machine learning to monitor performance against budget and subsequently adjust the mode, Marcus told Insider.
“We automate the cumbersome process of cohort-based forecasting which is a huge pain point in digital native business,” he added. This technique takes the behaviour of different groups of customers for a product or service, and combines it with statistical models to generate accurate forecasts.
Teams can run forecasts in minutes through the platform, which also helps predict customer behaviour, projected revenue, and the company’s annual growth.
“We started in the middle of the UK summer and the downturn, so we definitely didn’t do ourselves any favours,” Marcus said.
“That said, we found the process followed by most of the VCs we met incredibly well-structured, and on point. The key trend being to raise more to have at least 24 months run-way.
Marcus noted that “the diligence was extensive” amid the tougher landscape — and that VCs were only speaking with “target investments that fit directly in their portfolio filter.”
The seed round was led by London-based venture capital firm AlbionVC, which has previously backed AI startup Anthropics and digital health startup Oviva, and French investment firm Eurazeo, which is a backer of music streaming platform Deezer and delivery and super-app platform Grab. Additional participation came from Triple Point Ventures, Barnaby Hussey-Yeo, CEO of AI startup Cleo, and Stephane Kurgan, previous COO of King.com.
Check out the 17-slide deck used to raise the fresh funds.