In a significant milestone for the tech industry, German SaaS platform HERO Software has successfully raised €40 million in a Series B funding round. Established in Hanover in 2020 by Dr. Michael Kessler and Philipp Lyding, HERO Software’s mission is to digitize the operations of small and medium-sized enterprises (SMEs) in the tradesmen sector. This substantial influx of capital is set to expand the company’s reach and refine its software solutions, fundamentally transforming how tradesmen SMEs manage their workflows. The fundraise, led by Eight Roads Ventures with participation from Cusp Capital and Federated Hermes, underscores strong investor confidence and marks an essential step in HERO Software’s growth journey.HERO Software has dedicated itself to revolutionizing the tradesmen industry by offering a comprehensive Software-as-a-Service (SaaS) platform. The company’s primary goal is to streamline various operational aspects for SMEs, ranging from initial customer contact and quotation preparation to project execution, documentation, and final invoicing. This end-to-end approach ensures that all business processes are digitally mapped and accessible in real-time, leveraging cloud technology. With this €40 million funding, HERO Software is poised to further advance its mission, enabling it to expand its team, attract top-tier talent, and explore new market opportunities both within and beyond the DACH region (Germany, Austria, and Switzerland).
HERO Software’s Vision and Mission
Since its inception, HERO Software has been steadily building a reputation for innovative solutions tailored to the specific needs of tradesmen SMEs. The platform serves as an operating system for various trades, including plumbing, carpentry, electrical services, and photovoltaic installation. HERO Software’s vision is to become an indispensable tool for tradesmen SMEs, radically improving their efficiency through digitization. This mission is more critical than ever, as it empowers smaller businesses to compete effectively and adapt to a rapidly changing technological landscape.The €40 million funding will be pivotal in helping HERO Software realize its ambitious vision. By expanding its team, the company can tap into diverse skill sets, fostering an environment ripe for innovation and rapid growth. This influx of talent will enable HERO to develop new features and enhance existing ones, ensuring that the platform remains at the cutting edge of technology. Additionally, the funds will help HERO Software explore new market opportunities, allowing the platform to cater to a broader range of tradesmen SMEs across the DACH region and potentially beyond. This strategic expansion could see HERO Software establishing itself as a global leader in vertical SaaS for tradesmen.
Investor Confidence and Strategic Insights
The successful funding round led by Eight Roads Ventures highlights not just significant financial backing but also strong investor confidence in HERO Software’s capabilities and future potential. Notable participants such as Cusp Capital and Federated Hermes emphasized their belief in HERO’s strategic direction and the robustness of its business model. Lucile Cornet, Partner at Eight Roads Ventures, underscored the comprehensive nature of HERO’s product and the expertise of its experienced team as the primary factors driving their investment decision.Dr. Maximilian Rowoldt, General Partner at Cusp Capital, praised HERO Software’s superior product and its substantial commercial traction, reaffirming the company’s growth potential. Similarly, Fidel Manolopoulos, Co-Head of EMEA Investment at Federated Hermes, emphasized HERO’s pioneering role in digitizing traditional industry operations within the DACH region. This collective investor sentiment showcases a robust endorsement of both HERO’s vision and its operational execution. The confluence of insights and confidence from these investors indicates a strong belief in HERO’s ability to fundamentally transform the tradesmen sector through digital innovation.
Tackling Industry Challenges
The tradesmen industry is a cornerstone of European economies, contributing roughly 12% of GDP in many countries. Despite its traditional nature, the industry is central to meeting Europe’s climate targets as trades are often directly involved in implementing energy-efficient solutions. However, the sector faces a series of challenges that require innovative solutions—complex workflows, manual processes, and a pressing need for digital tools to streamline operations.HERO Software addresses these challenges head-on by providing a tailored Enterprise Resource Planning (ERP) system specifically designed for tradespeople. This system simplifies and digitizes various business processes, making it easier for SMEs to manage their operations more efficiently. By offering a cloud-based solution, HERO ensures that data-driven processes are not only transparent but also accessible on multiple devices in real-time, including mobile applications for field workers. This functionality is particularly beneficial for tradesmen who require on-site information access to enhance their productivity and efficiency. In an industry where timely and accurate information is critical, HERO’s platform provides the necessary tools to enable tradesmen SMEs to achieve operational excellence.
The Impact on SME Operations
The €40 million funding will dramatically amplify HERO Software’s capacity to support SMEs in the tradesmen sector. With these enhanced financial resources, HERO can continuously refine its software to add more functionalities, making it even more adaptable to specific industry needs. This continuous development cycle ensures that SMEs benefit from a cutting-edge platform that evolves alongside technological advancements and industry demands. The SaaS model will enable frequent updates and improvements, allowing SMEs to remain competitive and agile.Moreover, HERO Software’s end-to-end capabilities mean that SMEs can manage all aspects of their operation within a single ecosystem, from customer interactions to financial management. This seamless integration reduces the need for multiple software solutions, thereby lowering costs and simplifying the overall management process. For SMEs, this efficiency translates to more time and resources to focus on their core business operations. HERO Software’s intuitive digital tools handle the intricacies of workflow management, data integration, and analytics, empowering SMEs to achieve a higher level of operational efficiency and productivity.
Pioneering Digital Transformation
HERO Software’s commitment to digitizing SME operations aligns perfectly with broader industry trends towards comprehensive digital transformation. By providing specialized tools tailored to the unique requirements of tradesmen, HERO is setting a new standard for what SMEs can achieve through digitalization. The platform’s ability to streamline and automate complex workflows is a significant leap forward, positioning SMEs to be more competitive and efficient in an increasingly digital world. As SMEs adopt these digital solutions, the move toward paperless, efficient, and data-driven operations will become the norm rather than the exception.As HERO Software continues to innovate and expand, its impact on the tradesmen industry will likely spur further investments and advancements in vertical SaaS solutions. This sector-specific approach is demonstrating tangible benefits by addressing the nuanced needs of particular industries. In the tradesmen sector, where specific workflows and operational challenges can vary significantly, a tailored solution like HERO Software can make a substantial difference. HERO is not just a software provider but a transformative force driving the future of SME operations in the tradesmen sector, enabling businesses to thrive in an increasingly competitive market.
Future Growth and Market Expansion
In a milestone for the tech industry, German SaaS platform HERO Software has raised €40 million in a Series B funding round. Founded in Hanover in 2020 by Dr. Michael Kessler and Philipp Lyding, HERO Software aims to digitize the operations of small and medium-sized enterprises (SMEs) in the tradesmen sector. This significant capital boost will enable the company to expand its reach and enhance its software solutions, revolutionizing how tradesmen SMEs manage their workflows. The fundraise was led by Eight Roads Ventures, with participation from Cusp Capital and Federated Hermes, highlighting strong investor confidence and marking a pivotal step in HERO Software’s growth.HERO Software is committed to transforming the tradesmen industry with its comprehensive SaaS platform. The company’s goal is to streamline various operational aspects for SMEs, from initial customer contact and quote preparation to project execution, documentation, and final invoicing. This end-to-end approach ensures all business processes are digitally mapped and accessible in real-time through cloud technology. With the €40 million funding, HERO Software plans to advance its mission further, expand its team, attract top-tier talent, and explore new market opportunities within and beyond the DACH region (Germany, Austria, and Switzerland).
