Ramp, a financial forecasting platform for CFOs and management teams, has raised $5 million in Seed funding. The funding round was round led by AlbionVC and Eurazeo. Other investors include Triple Point Ventures and angel investors, including Barnaby Hussey-Yeo, CEO at Cleo, and Stephane Kurgan, Ex-COO at King.com, and more.
Ramp explains that it was launched after co-founder Angus Lovitt noted that the majority of quarterly target misses were due to the quality of the forecast. The company states that more than 90% of revenue forecasting still takes place on spreadsheets resulting in poor results. At the same time, they are time-consuming and open to subjective interference.
The alternative is Ramp’s service which claims to “take the guesswork out of forecasting.” Forecasts are run in minutes versus weeks or months. The platform is designed to take the guesswork out of forecasting.
Co-founder Lovitt previously worked at King Digital Entertainment, where he reportedly helped to scale the Candy Crush game.
The other co-founder Daniel Marcus previously built Magnetic Software with Ramp’s other co-founder and COO Jan Pickard.
Ramp claims that it has achieved accuracy and speed using “cohort-based forecasting.” This is explained as utilizing the behavior of various groups of customers for a product or service as soon as they become a customer.
Ramp states that it uses “multiple dynamically selected statistical models for different cohorts in any forecast.”
Lovitt, who is Chief Strategy Officer, claims that what took us all a day in terms of number crunching can now be accomplished in minutes, adding that the platform has given some businesses the confidence to invest in growth through marketing, while others the evidence to cutting costs or shuddering services. He describes the insight as “game changing” for a business using the service.
Marcus, who is CEO says their goal is to “position Ramp as a single source of truth for the future of businesses.”
“We’re at the forefront of this new product category and it’s great to have such renowned investors believe in this vision and join us on this journey.”