RegTech company Palturai has closed a €4m Series A funding round as the company continues its growth efforts of the past year, which included new offices in Austria and the US.
The fresh investment was led by VR Ventures, with Future Industry Ventures also contributing funds to the round.
When seeking its investors, Palturai founder and managing director Tilo Walter explained the company sought investors that met specific criteria. Besides money, other key decisive factors were access to potential clients and international experience.
“Therefore, we chose on the one hand an investor backed by a huge German banking association. On the other hand, we decided to go with Future Industry Ventures which is backed by SBI Holding and therefore a former subsidiary of Softbank from Japan.”
Capital from the round has been earmarked to expand its product suite, deepen its integration with SAP and Salesforce, and bolster its growth in the US.
Its flagship product BusinessGraph makes global business networks transparent and enables organisations to visualise and analyse the relationships of customers and business partners. The solution, which brings clarity to siloed data, helps a client reach undiscoverable insights to enhance opportunities and avoid risk.
Use cases for the tool include compliance and risk, sales and marketing, data management, and research and investigations.
Palturai is eager to continue the growth of its platform. This includes producing more integrations with its software partners and bolstering its position in North America. It is also looking to release new applications for the BusinessGraph solution in the near future.
Covid-19 brought a lot of challenges for many companies, but despite the troubled market, Palturai had a productive 2020. A big development was its new offices in Austria and the US.
While everything did not go as planned, the company managed to find new opportunities. Walter said, “Unfortunately, our planned North American introduction activities at major conferences and trade shows were cancelled. But the pandemic also offered new potential. We acquired customers who in the past relied on trade fairs and conferences as major marketing events. As people were not able to gather in person, we provided new, digital ways to find leads and potential customers. And we used our own solution, Palturai BusinessGraph, to find and contact leads.”
Being cautious was still in the mindset for the RegTech company. This meant it had strict cost management methods and established a code of conduct on how to handle funds. “Keeping an eye on costs helped us determine with greater clarity where to spend and where to cut costs.”
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