Solvimon Raises €9M Seed Round Led By Northzone To Enable Businesses to Adopt Usage-Based Pricing and Billing

Fundraising News
13.11.2023 02:50 pm

Solvimon, the next-generation billing platform, has raised €9M from Northzone and select business angels. The seed round will be used to continue expanding the team and to accelerate go-to-market.

Founded by Kim Verkooij (CEO) and Etienne Gerts (CTO), Solvimon’s platform empowers mid to large businesses to effortlessly operationalize modern pricing methods. This includes ‘usage-based’, where customers pay only for what they consume as well as hybrid models which combine usage-based and traditional, user-based subscriptions.

Verkooij (formerly Adyen’s Vice President - Product) and Gerts (formerly Adyen’s Senior Vice President - Technology and part of the founding team), previously worked together to develop Adyen’s internal billing engine. The engine needed to support their usage-based model, handle the flexibility of tailored, enterprise contracts, and handle enormous volume, as it scaled globally. The two founded Solvimon when they realized that the emergence of new technologies, such as AI, was further accelerating the adoption of usage-based pricing models, yet there was a clear lack of billing solutions for this new generation of business models.

From User-Based to Usage-Based

Research from the Venture Fund, Openview found that as many as three-in-five software companies already offer some form of usage-based pricing. However, the complexity of usage-based billing at scale, using legacy or homegrown systems, remains one of the major barriers to adoption. Too often, the monetization of products is being dictated by inflexible billing systems.

McKinsey research shows that this transition requires a “multi-month, cross-functional transformation”. Without a proper solution in place, the transition from user-based to usage-based models can lead to difficulties in accurately and automatically billing customers. In turn, this can lead to revenue leakage and manual work to rectify errors, which becomes a strain on temporal and financial resources.

Streamlining and Automating the Billing Process

Solvimon’s low-code, real-time platform allows companies to effortlessly implement usage-based, hybrid, and other pricing models. On Solvimon, businesses can model complex pricing plans, monitor invoices in real time, and unlock insights into product usage to identify opportunities for revenue expansion and customer retention.

Unlike point solutions that solve specific problems in the billing process (metering, pricing, or billing), Solvimon is unique in its ability to handle the entire monetization process. This is end-to-end, from the point where sales teams generate deal terms, to where finance teams report on revenue. Having a single source of truth for all product pricing and revenue data not only streamlines operations across the organization but will also provides business insights.

Kim Verkooij, co-founder and CEO of Solvimon, comments: “While there has been innovation in pricing and metering solutions, businesses are still underserved. Their options are patching together point solutions or entering the expensive and time-consuming process of building a homegrown billing solution. There is a clear need for a flexible, yet end-to-end billing platform. We’re really happy to be partnering with the Northzone team. They have studied the space deeply and understand the scale and urgency of the problem we’re solving. Their conviction meant that we could close the round in just two weeks and get back to building the business.”

Michiel Kotting, a partner at Northzone comments: “Having previously built Adyen’s complex internal billing engine, Kim and Etienne bring a wealth of unique insights and a deep understanding of the complexity of pricing for larger companies which are increasingly adopting hybrid business models. Billing and pricing software are mission-critical, and there is a strong need for a sophisticated end-to-end solution with a breadth of functionality”.