Round2 Capital invests in scale-up Avallain
Vienna/ Zurich — Austrian growth finance investment fund Round2 Capital has invested a seven-figure sum in Swiss EdTech scale-up Avallain. With its innovative revenue-based financing approach for growth-stage companies, which is more accessible than bank loans and offers more favorable terms than venture capital, Round2 invests in leading technology and software scale-ups in Europe. Photo: Round2 Capital management team from left to right: Stefan Nagel, Jan Hillered, Christian Czernich, Isabella Hermann-Schön . Award-winning e‑learning and EdTech pioneer Avallain is using the funds raised to expand its product offering for corporate use cases and to further strengthen its international market position.
After Round2 Capital further expanded its already two-year partnership with Munich-based cybersecurity company Myra Security with a double-digit million investment at the beginning of November, managing director Dr. Christian Czernich has now announced a further seven-figure financing. The new member of the Round2 Capital family is Swiss company Avallain, which provides cutting-edge e‑learning and EdTech solutions for clients — such as Oxford University Press and National Geographic — Learning-Cengage. i5invest acted as advisor to Avallain AG, which sees this measure as an important step towards scaling Avallain’s new product business.
“Avallain is a leading European player in the EdTech market. With this investment, we are adding a third company based in Switzerland to our portfolio. The founders — Ursula Suter and Ignatz Heinz — have managed to build up their business independently and establish an impressive customer base — especially in the academic market. We are excited to provide the growth capital to expand their products and services for the corporate space,” said Christian Czernich, CEO and Co-Founder Round2 Capital Partners. The investment will be used by Avallain to further develop and scale the “Avallain Magnet” product for corporate education and training.
Vienna-based financing provider Round2 Capital is the pioneer of revenue-based finance in Europe. Previously widely used for financing technology and software companies, particularly in the U.S., the model was adopted in Europe — by several other providers in the U.K. and Germany — following its launch by Round2 in 2017. The innovative financing instrument helps to fund the growth of companies without personal guarantees, rigid repayment schedules or dilution of ownership. In return, Round2 Capital is provided a small share from the company’s revenue until a predefined cap is reached. With this approach, Round2 Capital finances leading European technology scale-ups.
About Round2 Capital
Round2 Capital is a fast-growing European investment fund with €30 million in capital under management. The Vienna-based company is a strong partner for European scale-ups with digital and sustainable business models. Since its inception in 2017, Round2 Capital has been pioneering revenue-based finance in Europe and is active in several European countries, with a focus on Germany, Switzerland, Austria and the Nordic countries. To date, Round2 Capital has invested in 13 companies, with Avallain being the newest company in the portfolio. With this third investment in Switzerland, Round2 Capital further strengthens its market position. www.round2cap.com
Founded in 2002 by EdTech pioneers Ursula Suter and Ignatz Heinz, Avallain is an award-winning Swiss provider of EdTech and eLearning solutions, working with leading brands worldwide. The company’s mission is to unleash human potential through innovative and technology-based education. Avallain’s team spans five continents and represents more than 14 nations. The company is an active participant in the UN Global Compact and aims to advance the SDGs by achieving a zero carbon footprint and contributing to positive social change in sub-Saharan Africa through the Avallain Foundation. www.avallain.com