The story of a startup that reached 6.3 billion in six years

The story of a startup that reached 6.3 billion in six years

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In just six years, European software firm Personio has become one of the most valuable startups in Europe. The company is valued at 6.3 billion.

 

But the company's path was not so smooth in the beginning. Hanno Rainer, the company's chief executive, recalls those difficult times. In an interview with CNBC, he said the situation was such that at one time the company had only 226 dollars left as a bank. But good luck, the company gets a big investment after that incident. From then on, the wheel of fortune began to turn.

Personio was also established to provide services to small and medium businesses. The founders of Personio derive their inspiration from a real-life experience. That is, one of their friends was working as the chief technology officer of a company. But they have always received complaints from the human resources department that work is being disrupted due to lack of necessary software.

After hearing this, the founders of the company thought of giving a solution. Then they are students. They had no place to sit. For that, they were looking for a place to make software in one place of college. For that they invest as little as possible in student life.

Then the founders of the first software Personio sold. He re-invested in the development of the company with the money from the sale of that software. First, they take software licenses. Then they bought a small office and hired some staff.

 

Based on this success, the founders of Personio received seed funds. In 2016, they received 21 million euros. Among the investors were Global Founders Capital those who have invested in Facebook and LinkedIn. However, according to the rules, Personio had to pay all the outstanding bills before investing.

From then on, the company's financial position began to change dramatically. Last October, they gained 270 million investments. And the value of the company stands at 6.3 billion. This is significant because the company's valuation stood at 1.7 billion in January alone. Within 10 months the assessment more than tripled.

This new fund is being spent on software development, called People Workflow Automation. This has created an opportunity to bridge the gap between the company's human resources and other departments. This is especially true if there is a need for coordination between different departments when recruiting staff.

Hano Rainer, the source of the company's success, believes that success can be achieved not only by being the boss of the employees but also by creating an environment in which the employees can feel like the proprietors of the company. Rainer added that employees need to make sure they can make the right decisions or feel like entrepreneurs.

 

Personio now has thousands of employees. But in 2020 the number of employees was 350.