9 out of 10 startups fail, Finnish fintech secures EUR 1.5 million to fix this

Calqulate, an automated financial analytics and knowledge base for startups and growth companies, has raised €1,5 million from American and European investors, led by Maki.vc. This new investment will enable Calqulate to expand into the U.S. market by the end of Q1 and develop further financial models into its platform.

Calqulate makes financial analytics understandable and actionable so users have the clarity and understanding of their data to make successful decisions.

The CEO and co-founder Niko Laine, has spent 20 years working internationally with startups and growth companies as a CFO, setting up financial reporting and forecasting models for a range of clients.

“Financial forecasting and reporting is tedious, complex, and time-consuming,” Niko explains

“I’ve been there – Tech companies achieve considerably faster growth when they understand their key metrics and know how much it costs to acquire new customers in different markets and segments. It is essential to know when it’s time to invest in growth.”

It is estimated that nine out of ten startups will fail, mostly due to a lack of financial clarity within the company. Many of these challenges and risks can be eliminated by having a clear overview of the company’s growth metrics and accurate cash flow forecasts.

An essential financial tool for new businesses

“Entrepreneurship is on the rise. The struggle to stay afloat is real – especially now, when there are so many uncertainties in the market,” says Laine. “At the end of the day, it boils down to finances.”

According to lead investor Maki.vc, Calqulate is uniquely positioned to simplify reporting, automate routines and provide forecasts as a service – capabilities usually found only in larger organizations with sizable financial teams.

“Many companies, especially in their early stages, have limited budgets or capabilities in their financial teams. In order to manage successful, rapid growth, you need to be on top of your key metrics and have a forward looking view to your cash flow,” said Pirkka Palomäki, Partner at Maki.vc.

A Nordic invention: Simplicity is Key

True to its Nordic roots, Calqulate stresses simplicity. It enables founders, CEOs and CFOs to assimilate and automate financial reporting and forecasting from day one, without requiring either financial or technical knowledge, or a huge budget.

“Companies need a simplified, transparent financial forecasting and reporting software” says Osama Abdelmoghni, CTO and co-founder of Calqulate, “As do investors. In 15 mins, we automate financial reporting with our out-of-the-box financial models, forecasting and clear data visualization, making it possible for any startup entrepreneur to work like a pro CFO.

Since its inception less than two years ago, Calqulate has grown from a three-person team to a burgeoning thirty person company with staff on 3 continents and representing 10 nationalities. By mid-2021, the company also plans to launch its platform to businesses in other verticals, such as e-commerce and mobile gaming.