HR unicorn Factorial raises $80M

Barcelona-based HR unicorn Factorial has raised $80M go-to-market investment from General Catalyst, wherein GC pays a significant portion of the cost of acquiring new customers.

Factorial’s HR platform automates processes from core HR to expense management, and operates throughout Europe, The US and Latin America.

The raise follows Factorial’s oversubscribed $120M Series C round in 2022, led by Atomico. A spokesperson for a company explained that the company typically loses money when acquiring customers, so for GC to take on this downside risk will be instrumental, allowing Factorial to “accelerate growth without putting a dent on its balance sheet.” Insurtech Lemonade used a similar method last year.

“As one of the fastest-growing software companies in Europe, we wanted the ability to keep our growth trajectory without ever needing an equity round. This partnership with General Catalyst is exactly what we were looking for. We can focus on building great products and helping more customers without worrying about fundraising,” said Factorial CEO and co-founder Jordi Romero. “General Catalyst is one of the most reputable tech investors in the world and that made the process very easy. They understand the quality of the business and the market.”

"Having known the Factorial team for years and seen their growth trajectory and the performance of its customer cohorts, General Catalyst strategically chose to invest and turbocharge the company’s go-to-market strategy. This decision aligns with our objective to identify and support innovative ventures with substantial market impact," added Pranav Singhvi, Managing Director at General Catalyst.