Growblocks, a Copenhagen-based company, is on a mission to use better data insights and forecasting to help businesses realize their full income potential. As demand increases, the business has recently secured €6 million.
With participation from Headline, Project A Ventures led the €6 million seed round.
The seed round also included participation from angel investors Dave Kellogg, Chris Schagen (Contentful), Pieterjan Bouten (Showpad), Ulrik Bo Larsen (founder of Falcon.io and Toni, Olafur, and Andrew’s previous boss), and Ulrik Bo Larsen.
An essential component of doing business for any firm is having a defined growth plan. A company’s growth trajectory, decisions, and performance tracking are all influenced by revenue planning and execution.
Since revenue planning is a key component of how an organization functions as a whole, it seems sensible that it would require exactitude and data-driven insights. However, the truth is that the majority of businesses today concentrate on top-down aims and justify choices using presumptions and objectives. There are currently few tools available that can assist in setting realistic revenue objectives and streamlining the procedure.
Existing technologies frequently focus on assisting finance teams in cost control rather than genuinely assisting them in revenue planning.
This problem served as the impetus for the creation of Growblocks by Olafur Palsson, a former chief operating officer at Templafy, Andrew Dahl, a vice president of product at Falcon.io, and Toni Hohlbein, a former chief revenue officer of Planday and Falcon.io.
The Danish team has now received more investment for their platform for planning and executing sales.
Growblocks, a company founded in 2021, intends to assist businesses in maximizing their earnings. Its technology adopts a radically different strategy from the current top-down approach by putting a company’s real-time data funnel to work to generate a solid bottom-up revenue plan.
Growblocks CEO and co-founder Toni Hohlbein: “Today’s B2B Software-as-a-Service utterly breaks revenue planning and execution (SaaS). Companies frequently concentrate on their top-down objectives and base their choices on presumptions and objectives rather than actual evidence.”
Toni Hohlbein added, “Every other day when a new wave of layoffs is announced, we can all see the effects of this in the headlines.”
The founders of Growblocks believe that a data-driven, more precise approach to revenue planning is needed in place of the current broken approach. Many businesses currently use enormous Excel sheets that are prone to errors and challenging to update as the number of data sources increases.
The revenue side is overlooked while the cost side benefits from well-established standards and transparent accounting requirements. Churn, client lifetime value, and acquisition costs are frequently assessed arbitrarily and based on arbitrary growth goals. Instead, Growblocks asserts that it will improve process clarity and revenue comprehension.
Toni: “To put it plainly: Businesses frequently lack a thorough understanding of both the expenses and processes involved in generating revenues. Without taking into account segments, markets, and people, relying simply on budgets and business targets makes it exceedingly difficult to know where and when to intervene to have the biggest impact when the wind shifts and things stop going as planned.
Commercial teams can utilize the platform to develop predictable revenue strategies, carry out quarterly business assessments, and monitor performance about goals and activities.
It provides a foundation for what a company will accomplish, allowing revenue teams to develop and contrast various scenarios to attain desired growth rates utilizing correct go-to-market data. The revenue plan is developed and carried out in terms of tracking, making adjustments, and reporting based on the selected scenario.
“For their revenue, every organization needs a full-funnel operating approach. The operating concept of Growblocks integrates with every system to show the whole funnel, from traffic to churn.
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Businesses may use it to simulate every scenario and estimate where their revenue will come from, allowing them to make the best decisions possible at every turn. We would have adored a tool that linked the planning of expansion with the actual drive of it back when we were starting business owners. We founded it, and we built it.
The platform from Growblocks can also be helpful to teams in charge of sales, marketing, and customer success to assess the feasibility of budgets, create recruiting and project scenarios to help meet revenue goals, optimize resource allocation, and enhance customer acquisition cost payback.
Sam Cash, a partner at Project A, said “For SaaS organizations implementing operating plans, strategic planning from a cost viewpoint has serious constraints. Silos make this issue worse because the majority of these plans are not baked against actual running data.”
Sam continued, “With several best-in-class businesses, Growblocks, the mission control for revenue specialists, is resolving this problem. We’re excited to support and collaborate with the Growblocks team through investment.”
The Copenhagen-based business aspires to give its clients sustainable growth because it believes in it. It has adopted the same strategy, beginning to make money right away and then developing into a fully developed software solution. The platform is already being utilized by businesses including Dixa, Blinkist, and Lokalise.
Emls Pauls Egltis, manager of RevOps Insights at localization platform Lokalise: “In the past, we would just put money into a black box and wait to see what would come out the other end. Now, we can predict where to invest and how things will pan out better.
With this additional capital, the firm will be able to expand and support more teams as they plan and execute its revenue potential.
“It’s not unusual to see brilliant firms struggle to convert raised cash into genuine revenue growth,” says Jonathan Becker, Partner at Headline. “Almost anyone can make plans, but it’s incredibly difficult to turn those intentions into concrete actions.”
“Modern treasury management systems are in high demand. Growblocks is the only one of them that fully utilizes a company’s data sources to develop project and recruiting plan scenarios that support revenue targets,” Jonathan Becker further said.
Image Credit: Growblocks
