UK’s XLIO Ventures raises €43.57M to create “Made-to-Order Startups” for its customers; here’s how

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Running a business is never easy, let alone surviving in the market with so much competition. The complexity of creating and sustaining a startup can prove to be incredibly nerve-racking. This is where London-based XLIO Ventures step in.

Unlike other investors, who only invest in a startup, XLIO Ventures claims to do things differently. The company helps enterprises acquire the technology and talent they need, by creating startups for them to acquire.

XLIO Ventures raises funds

In a recent development, the “Made-to-Order startups” company announced that it has raised £37.5M (approx €43.57M) in a fresh round of funding. The round includes a mix of institutional capital and family offices that make targeted investments in high growth financial ventures with innovative models.

According to the company, its experienced leadership and created portfolio startups have attracted this round’s capital from existing investors. XLIO’s CEO Ron Kornfeld says, “Since our founding in December of 2019, we’ve gotten an excellent response from the market to our unique concept. This capital will allow us to expand the number of companies we build and customers we delight.”

The raised capital will help XLIO to further develop its personalised startup approach and expand business operations to new cities globally.

How does XLIO work?

Unlike traditional investors, XLIO’s business model is to collaborate with enterprises and understand their goals, then create a startup from the ground up, including team members, technology, and IP to their exact specifications and timeline. Instead of enterprises, XLIO takes on the risk and cost.

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QA, testing, and integration happen in parallel with development, so the startup is ready to deliver value at the point of handover. Once the “made-to-order” startup reaches a certain point in development, the enterprise can acquire 100 per cent of the company’s assets and team members back from XLIO Ventures at a pre-agreed price. 

The company mentions on its website that, “From specification to team recruitment to development, we offer transparency and as much participation as you’d like. When we achieve the KPIs, you purchase 100 per cent of the startup in a clean transaction, with no complex diligence process, and start benefiting from the purchase on Day 1.”

According to the company, the idea behind XLIO’s business model is backed by a team of experienced leadership from companies such as Amazon, SwiftKey, and a number of successful startups. They bring expertise in a wide range of technology areas, including AI/ML, RPA, edge/IoT, Virtual/Augmented Reality, and cyber security. 

Besides London, XLIO Ventures is currently operating in other cities, including Seattle, New York City, Tel Aviv, and Sao Paulo.

Editor’s Note: In this article, it was incorrectly mentioned that XLIO Ventures helps entrepreneurs develop their business idea by creating startups from scratch. The company actually creates startups for its enterprise technology customers. Therefore, the article has been updated.

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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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