German bootstrapped M&A matchmaking platform DealCircle secures non-dilutive growth capital

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Hamburg-based DealCircle, a company offering technology-based M&A solutions for M&A advisors and buyers, has secured a 7-figure euro funding deal from Round2 Capital, to support its business expansion.

According to the company, the revenue-based finance investment and its flexible refinancing profile align well with the company’s success-based business model. 

DealCircle was founded in 2018 by Kai Hesselmann and Graig Gröbli and has been bootstrapped until now. Both the founders remain in full control of the company while receiving non-dilutive growth capital.

Gerd Sumah, Partner at Round2, says, “DealCircle has shown remarkable performance despite very challenging market conditions over the past 1.5 years. Graig and Kai have demonstrated exceptional entrepreneurial thinking and have successfully steered the company with effectiveness throughout their bootstrapped journey.”

“We are convinced of their visionary goals for further development and believe that Round2 as a flexible and strategic growth capital partner is the right partner for the next phase of DealCircle’s growth trajectory.”

Tech-enabled M&A solutions

Dealcircle offers an M&A matchmaking solution that simplifies the buyer-identification and market approach processes for M&A advisors. 

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It leverages data and buyer preference insights to outperform competitors. Using intelligent search algorithms, DealCircle helps identify the most suitable buyers, granting M&A advisors access to its investor database.

DealCircle placed around 1,200 M&A projects and aims to market over 1,500 projects this year.

Capital utilisation

The funding will help DealCircle accelerate its growth and invest in its tech stack and AI tools for product enhancements and increased value creation. 

The company plans to enhance its automated, AI-generated buyer shortlist and expand its tech team with more Machine Learning Engineers and Data Scientists.

Co-founder and MD of DealCircle, Hesselmann, says, “Round2’s investment is not only intended to pre-finance operational growth with over 1,500 M&A deals, which will also be marketed via DealCircle this year, but above all to accelerate our tech investments.”

“AI is much more than just a buzzword and will also change our business significantly in the short term. AI-supported shortlist generation is just the beginning.”

“The 7-figure financing from Round2 will help us to do this and ensure that AI does not disrupt our business model, but that we can use it to accelerate our growth even further,” adds Hesselmann.

Brief about Round2 Capital

London and Vienna-based Round2 Capital is a pan-European growth investment firm with €180M under management. Since its founding in 2017, the firm claims to have pioneering revenue-based finance in Europe and supports digital and sustainable business models.

Round2 Capital is supported by the European Investment Fund (EIF) to assist technology companies within the European Union. Round2 Capital Partners II receives partial funding through the “Mezzanin Dachfonds für Deutschland Fazilität 2”, managed by EIF for the ERP Sondervermögen. 

This facility is represented by the German Federal Ministry for Economic Affairs and Energy (“Bundesministerium für Wirtschaft und Energie”), LfA-Gesellschaft für Vermögensverwaltung mbH, and NRW.Bank Anstalt des öffentlichen Rechts.

Round2 Capital has invested in 36 software and technology scale-ups across nine countries.

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Vishal Singh

Vishal Singh is a News Reporter and Social Media Marketing Lead at Silicon Canals. He covers developments in the European startup ecosystem and oversees the publication's social media presence. Before joining Silicon Canals, Vishal gained experience at the Indian digital media outlet Inc42, contributing to its growth with insightful content. Despite being a college dropout, his passion for writing has driven his career in journalism.

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