Ramp, a forecasting analytics startup, has raised $5m in seed funding to transform how global finance teams plan for the future.
The round was led by AlbionVC and Eurazeo. Triple Point Ventures participated, alongside high-profile angel investors including Barnaby Hussey-Yeo CEO at Cleo, and Stephane Kurgan, Ex COO at King.com, among others.
Ramp was created after co-founder Angus Lovitt realised the majority of quarterly target “misses” were not due to company performance but the quality of the forecast itself. In other words, factors that could have been predicted at the time.
According to Ramp, the root cause of such poor revenue forecasting is that in 99% of businesses, the financial modelling still takes place on spreadsheets which are no longer fit for purpose. “They’re inaccurate, time-consuming and too open to ‘subjective’ interference from different areas of the business with their own agendas,” the company said.
Ramp aims to allow teams to take the guesswork out of forecasting. The platform runs scenarios and forecast in minutes and predicts customer behaviour, future revenue and the annual growth of a firm.
This helps to avoid the costly consequences of incorrect resource allocation, wasted marketing spend, underinvesting, and missed targets, Ramp said.
Angus Lovitt, chief strategy officer and co-founder, said, “Our platform dramatically increases the accuracy of revenue forecasting in a fraction of time it would take in spreadsheets.
“What took us all a day in terms of number crunching we can now do in minutes. Yet what really excites me about the platform are the strategic decisions we empower businesses to make. Our platform has given some businesses the confidence to invest in growth through marketing, while others the evidence to cutting costs or shuddering services. The insight we deliver can be game-changing.”
Earlier this year, Marco, a tech-enabled trade financing platform built for SMEs in Latin America and the US, received a $200m credit facility.
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