Table of Contents
- Introduction
- Understanding Viable's Mission
- The Funding Journey
- Utilization of the Seed Funding
- Future Outlook and Industry Impact
- Conclusion
Introduction
In the fast-paced world of e-commerce, small businesses often face financial challenges that can hinder growth and sustainability. Rising costs, dwindling investor interest, and the need to manage finances efficiently in a competitive market landscape are common hurdles. Viable, a fintech startup from London, has emerged as a beacon for these businesses, offering innovative financial tracking solutions. In a significant milestone, Viable recently secured $3 million in seed funding to expand its offerings and accelerate growth. This blog post delves into Viable's unique value proposition, the reasons behind its successful funding, and what the future holds for this promising startup.
Understanding Viable's Mission
Viable was founded in 2023 with the objective of aiding small e-commerce and direct-to-consumer (DTC) companies, particularly in the beauty, wellness, and fashion industries. These companies often struggle with rising operational costs and a post-COVID-19 investment environment that has seen venture capitalists become more selective. Viable's co-founder, Franklyn Martin, identified a crucial need for these businesses to manage and project their finances efficiently.
Core Solution: Real-Time Financial Tracking
Viable's standout feature is its use of machine learning to track and project company finances in real time. By tagging and matching transactions as they occur, businesses gain a clear and up-to-date view of their financial health. This functionality is particularly valuable for founder-led e-commerce businesses with small internal finance teams, where every decision can significantly impact the bottom line.
Pricing Model and Services
Viable operates on a tiered subscription model, with monthly fees ranging from £500 to £1,500 ($635 to $1,900). These tiers correspond to different levels of access to premium services, catering to the varying needs of small businesses. This flexibility ensures that businesses of different sizes and stages can benefit from Viable's offerings.
The Funding Journey
In April of the same year the company was founded, Viable successfully closed a $3 million seed funding round. This funding came from a mix of investors, including Episode 1, Haatch, Portfolio Ventures, and several angel investors. The process began in mid-December, and despite the usual challenges of securing seed funding, the round was finalized within a few months.
Why Investors Were Interested
There are several reasons why investors found Viable to be a compelling opportunity:
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Market Need: The specific focus on e-commerce and DTC companies in sectors like beauty, wellness, and fashion means that Viable is addressing a clear and present market need.
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Innovative Technology: The use of machine learning for real-time financial tracking is a cutting-edge solution that stands out in the fintech space.
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Scalability: Viable's service model, which includes potential future development of embedded finance products, signals a scalable business model with multiple revenue streams.
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Experienced Leadership: With Franklyn Martin at the helm, Viable benefits from leadership that understands both the financial and technological challenges faced by small businesses.
Utilization of the Seed Funding
The $3 million seed funding is set to accelerate Viable's growth and development in several key areas.
Talent Acquisition
A significant portion of the funds will be allocated to hiring full-time staff. This includes key roles such as a designer, which indicates an intention to improve user experience and interface design, crucial aspects for any fintech platform aiming to stand out.
Product Development
Continued product development is another critical area, with a focus on embedded finance products. These products will enable users to access credit and lending facilities directly through the Viable platform, offering a convenient and integrated financial management solution.
Future Outlook and Industry Impact
Viable's successful funding round and ambitious growth plans suggest a bright future. By continuing to address the specific needs of e-commerce and DTC companies, the startup is well-positioned to become an indispensable tool for small businesses navigating the complexities of modern financial management.
Embedded Finance: The Next Frontier
The development of embedded finance products signals Viable’s intention to not just assist with financial tracking but also to provide comprehensive financial solutions. This could include everything from small business loans to credit lines, tailored specifically for the volatile environments often faced by small e-commerce ventures.
Long-Term Strategic Goals
In the long term, Viable aims to refine and expand its product offerings, solidify its customer base, and potentially explore partnerships with larger financial institutions. This strategic approach can ensure both steady growth and increased market penetration.
Conclusion
Viable's journey from its founding to securing $3 million in seed funding is a testament to its innovative approach and the significant market need it addresses. By leveraging machine learning for real-time financial tracking, offering flexible subscription tiers, and planning for the development of embedded finance products, Viable is well on its way to becoming a key player in the fintech space.
FAQs
Q: What makes Viable's financial tracking solution unique?
A: Viable uses machine learning to provide real-time tagging and matching of transactions, offering businesses an up-to-date and precise overview of their financial status and future projections.
Q: How does Viable's pricing model work?
A: Viable offers a tiered subscription model, with monthly fees ranging from £500 to £1,500. Different tiers provide access to varying levels of premium services, making it accessible to businesses of different sizes and needs.
Q: Who are some of Viable's investors?
A: Viable's $3 million seed funding round included investments from Episode 1, Haatch, Portfolio Ventures, and a group of angel investors.
Q: What will the funding be used for?
A: The funding will be utilized to hire full-time staff, including a designer, and to further develop Viable's product offerings, particularly in the area of embedded finance products.
Q: What industries does Viable primarily serve?
A: Viable typically serves e-commerce and direct-to-consumer companies in the beauty, wellness, and fashion sectors.
