TechGenies Hires New Leaders with ECL Funding
Learn how software company TechGenies used revenue-based finance to hire key leaders, at a critical point in its growth journey.
Context
TechGenies is a global leader in software development and cybersecurity, providing innovative IT solutions through a Build, Operate, Transfer (BOT) model and staff augmentation. Headquartered in the USA with a presence in 10+ countries, including tech hubs in South & Southeast Asia, Europe, and Latin America, TechGenies employs over 200 skilled professionals.
Their approach emphasizes cost efficiency, often delivering services at 25%-50% less than US-based teams, while maintaining high-quality standards. Founded in 2015, TechGenies has quickly become a powerhouse in software development, IT consultancy, and cybersecurity solutions. Their model coupled with robust cybersecurity products and services offers clients a significant strategic advantage, swiftly launching them into global marketplaces.
Key takeaways
- ECL’s revenue-based financing enabled TechGenies to hire a Head of Sales and a Head of Marketing Strategy, pivotal to their growth.
- Alternative financing allowed TechGenies to expand globally without equity dilution.
- TechGenies was able to avoid traditional high-interest debt options, and selected ECL for its transparent and partnership-centric approach.
Challenges
As 2023 approached, TechGenies was poised for ambitious growth, necessitating the need to strengthen their growth team with experienced leaders. Thriving as a bootstrapped company and 100% ownership, TechGenies sought external funding to propel their next growth phase without relinquishing equity.
Long venture capital cycles:
In the challenging economic landscape of 2023, venture capital funding dwindled, and alternative funding solutions emerged as a lifeline for many founders. CEO Al-Amine, recognizing the prolonging venture cycles, sought a near-term funding option that didn't involve prohibitive costs or loss of equity.
High-cost bridge financing
Al-Amine found the bridge financing landscape to be filled with high-interest options, often ranging between 25-30%, which Al-Amine found excessive.
Investing inKey Leaders:
Hiring key GTM leaders, including a Head of Sales and a Head of Marketing Strategy, was essential for growth but required significant upfront investment.
Solutions
TechGenies was introduced to revenue-based funding options, and referred to Efficient Capital Labs (ECL) by a peer. This marked a turning point. ECL's approach, characterized by reasonable rates, transparency, and a partnership-centric philosophy, aligned well with TechGenies’ team's values. This led to a mutual understanding of ECL as more than a financier, but a long-term growth partner. ECL's agility and flexibility contrasted favorably against conventional equity methods, allowing TechGenies to pivot from expensive debts to strategic growth investments.
Transparent and Flexible Financing: ECL offered competitive rates and a transparent process, aligning with TechGenies’ values.
Strategic Talent Acquisition: Financing was deployed to onboard transformative leaders, enhancing TechGenies’ growth trajectory.
Cost-Effective Global Expansion: Revenue-based financing allowed TechGenies to scale their global presence while maintaining financial control.
Results
With ECL’s financing, TechGenies achieved significant milestones, laying the foundation for sustained growth
- Key Hires TechGenies successfully onboarded a Head of Sales and a Head of Marketing Strategy, driving business development and marketing strategy. This helped them to further expand and strengthen their global operations in their 10+ country locations.
- Retained Full Equity Ownership As a bootstrapped company, TechGenies maintained 100% equity ownership while fueling growth initiatives.
