Swiss edtech company Avallain obtains growth capital

Avallain offers state-of-the-art e-learning and EdTech solutions for customers such as Oxford University Press. The company’s mission is to enable businesses and organizations to create highly interactive e-Learning content solutions. Co-founders and EdTech pioneers Ursula Suter and Ignatz Heinz lead the international Avallain team, which spans five continents and has staff members from over 14 countries. Avallain plans to invest the funds in its product development pipeline for corporate use cases and in its international market expansion efforts.  

Ursula Suter, Co-Founder of Avallain AG, states: “Both the long-term trends and the immediate COVID situation demonstrate the need for and fast-growing adoption of advanced edtech solutions such as those we have offered since 2002. The additional financing will provide a powerful boost for our market rollout of these products. Round2 is an attractive option for founders like us who strive to achieve significant growth without prematurely diluting our brand or ceding control.”

Revenue-based financing

The Vienna-based company Round2 Capital represents a new breed of alternative financing providers for tech companies and has been a pioneer of revenue-based financing in Europe. Revenue-based finance, which is widely used in the U.S.A. for financing technology and software companies, was introduced by Round2 Capital in Europe in 2017.

This financing model helps to finance scale-up companies without personal guarantees or rigid repayment schedules and without dilution of ownership. In return, Round2 Capital receives a small portion of the company's revenue until a predefined ceiling or cap is reached.

Round2 Capital is fast-growing and manages 30 million euros worth of assets. The Company is active in several European countries with a focus on Germany, Switzerland, Austria and the Nordics. Up till now Round2 Capital invested in 13 different companies, Avallain being its latest investment. With this third investment in Switzerland, Round2 Capital further strengthens its market position. The fund has alread invested in Jacando and My Private Boutique.

(Press release / SK)

Picture: Ursula Suter and Ignatz Heinz