Archlet – User-Centric Sourcing and Procurement
Product and Technology Due Diligence on Software as a Service Startup
Our long standing client, HV Capital, got us on board to perform the tech due diligence on Archlet, a young company raising for their Series A round. As P&B has conducted many Tech DDs on SaaS and B2B startups, assessing Archlet fell right into our area of expertise. As always, our report also provided a set of action items and recommendations, which have been picked up and addressed by Archlet after the due diligence.
- Engagement: Product & Tech Due Diligence
- Business Context: Sourcing and Procurement SaaS
- Technology: SaaS
- Round: 10 Million Dollar Series A
Archlet: Working Towards Better Procurement Through Technology
Archlet recognized the impact of data-driven strategic sourcing while solving their client’s everyday sourcing challenges. They focus on combining their backgrounds in data science and machine learning with deep hands-on procurement expertise to rethink strategic sourcing.
Archlet aspires to drive better outcomes for businesses by helping Procurement think about more than just costs. Their idea is to empower Procurement professionals to make holistic decisions and become a true source of impact within organizations.
Tech DD Ahead of Funding Round: Assessing Sourcing SaaS Startup
The objective of the audit was to get an overview of the product itself and of the team, its processes, architecture and best practices across the product and engineering teams in order to identify potential risks ahead of a Series A funding round.
The due diligence was conducted with Philipps & Byrne signature 360 degree assessment framework, in which we evaluate the big picture, including business and growth strategy, as well as looking into the nitty-gritty, such as coding, hosting, security and privacy. The findings resulted in a report that provided an initial indication and overview of Archlet’s technical health at the time of the audit, as well as offering a basis for discussing further steps in tech.
Regarding the recommendation from Philipps & Byrne, we addressed the high priority topics, especially around leadership, architecture, and enterprise readiness, and with our new CTO we are taking it from there.
Jakob Manz, Co-Founder, Archlet
Valuable Findings and Recommendations for Future Growth
While the founders and the team at Archlet were already experienced with financial and legal due diligence, this was the first time they went through a technology and product due diligence. Understandably, there was some nervousness prior to the assessment. “While there was awareness about certain areas with room for improvement within our young company, the outside perspective helped us to prioritize. At the same time, certain documentations and materials we had to create for the due diligence that did not exist before, actually helped us, moving forward”. Jakob Manz, Co-Founder at Archlet reflects on the tech due diligence with P&B.
Jakob also found that the format was helpful: To have a dedicated process and time frame to focus on tech topics and SWOT analysis, detached from the daily business, gave a different focus on tech topics and possible blind spots. Recommendations provided by the report included: Focus on strengthening technical leadership, such as CTO, and Engineering, as well as implementing measures that build up enterprise readiness and improve the existing infrastructure.
“Regarding the recommendation, we addressed the high priority topics, especially around leadership, architecture, and enterprise readiness, and with our new CTO we are taking it from there.” Jakob says.
About Archlet
Archlet is a user-first sourcing software company that helps Procurement make better sourcing decisions faster. From large enterprises to SMEs, Archlet believes that easy to use and data driven sourcing decisions should be available to every company, no matter their size, industry or maturity. The Archlet Sourcing and Sourcing Optimization Apps provide users with the focused sourcing and negotiation features required for a modern Procurement organization.
Visit: www.archlet.io
About HV Capital
Since 2000, HV Capital, formerly HV Holtzbrinck Ventures, has backed internet and technology companies through various generations of funds and is one of the most successful and financially strongest early-stage and growth venture capitalists in Europe. HV’s funds have already invested in around 200 companies, including Zalando, Delivery Hero, FlixBus and SumUp. The total of all HV‘s funds amounts to €1.7 billion. The company supports startups with capital between €500,000 and €50 million. This makes HV Capital one of the few venture capitalists in Europe that can back startups through all growth phases.
Visit: www.hvcapital.com