Hannover-based HERO Software, a SaaS platform for tradesmen SMEs in the DACH region, has closed €40M in a Series B round of funding led by Eight Roads Ventures.
In addition to the lead investor, existing investor Cusp Capital, Federated Hermes also participated in the round.
Lucile Cornet, Partner at Eight Roads Ventures, says, “At Eight Roads we have witnessed many successful stories in Vertical SaaS, and HERO stands out for its comprehensive product and experienced team. We’re excited to be backing their growth journey.”
“We strongly believe that vertical SaaS will enable entire industries to become more digital and sustainably successful – which is one of our investment thesis’ at Eight Roads Ventures.”
Dr. Maximilian Rowoldt, General Partner at Cusp Capital, adds, “Michael and Philipp are building a best-in-class product, an incredible team, and achieving strong commercial traction – it has been a pleasure to witness their growth since leading their Series A.”
“One of the beauties of building an industry-specific operating system is the potential to add functionalities on top of the core software and the resulting levers that enhance your customer’s success. We look forward to continuing to support the entire HERO team in implementing its ambitious strategy.”
Craftsman software for professionals
According to a statement from HERO Software, the tradesmen industry is crucial to Europe’s economy and climate goals. In many countries, it contributes up to 12 percent of GDP. To meet energy-efficient building targets, modern ERP systems tailored for tradespeople are essential.
Founded in 2020 by Dr. Michael Kessler and Philipp Lyding, HERO Software provides a digital platform for managing all workflows in one place.
It supports SMEs in trades like plumbing, carpentry, and electrical services, enabling seamless management of customer interactions, project planning, and invoicing across various devices.
Founder Dr. Kessler, says, “We founded HERO Software with a clear mission: to revolutionise the trades industry through digital innovation. This substantial Series B investment provides the resources to accelerate our roadmap and undertake ambitious new projects“.
With over 20,000 users, HERO Software claims to have become a leading cloud-based solution for tradesmen in the DACH region. Its technology boosts efficiency, allowing customers to enhance project throughput and operate more sustainably.
Currently, the company has more than 120 employees.
Capital utilisation
The new funding will help HERO Software bolster its team by hiring new talent (currently, 120 employees), expanding into new markets, and enhancing its SaaS offering further.
The investment will support the company in its mission to empower small and medium-sized trade businesses to thrive.
Founder Dr. Kessler, says, “Going forward, we are planning to make everything around financial transactions for our customers as easy and smooth as possible. Additionally, we will focus on integrating third-party tools & services to our platform to save even more time and thus improve the margins of our customers.”
Brief about the investors
Eight Roads Ventures is a global VC firm with $11B AuM and over 50 years of experience. It operates across Europe, Asia, and the US, and has invested in over 300 companies, including Alibaba, Chewy, and Wallapop.
Cusp Capital is a VC firm specialising in European software and technology. It invests in early-stage companies poised to transform their industries with new technologies. With over €600M invested in the past 15 years, Cusp Capital’s portfolio includes Zalando, Delivery Hero, Klarna, Scalable Capital, data Artisans, Personio, and SoSafe.
Federated Hermes Private Equity manages $6.1B and has over 30 years of experience in global private equity. It focuses on co-investment, primary funds, secondaries, and bespoke strategies, with offices in New York, London, and Singapore and a team of 38 professionals.
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