Cube Secures $10 Million Series A Funding for FP&A Software

This morning, Cube, a company specializing in FP&A software designed for businesses in the mid-market sector, announced the successful completion of a $10 million Series A funding round. Previously, the startup had secured a $5 million seed round, which was covered by TechCrunch last August.

Mayfield spearheaded the Series A investment, with additional participation coming from Operator Collective and Bonfire Ventures.

Understanding FP&A

FP&A, or financial planning and analysis, represents the crucial process through which companies map out their financial trajectory. It is a fundamentally important function for any organization.

However, much of the technology utilized by CFOs and financial professionals is often characterized by being outdated, costly, and inefficient.

Cube’s Approach to Modern FP&A

Cube aims to revolutionize FP&A workflows by delivering software that is both user-friendly and compatible with existing spreadsheet-based systems. The company’s platform integrates data from a company’s general ledger, CRM systems (like Zoho CRM), and payroll services into a centralized hub.

This consolidated view empowers CFOs and their teams to analyze historical performance and forecast future financial outcomes, utilizing familiar tools such as spreadsheets.

Growth and Traction

When TechCrunch last reported on Cube, a commitment was made to provide updates upon the availability of growth metrics. Christina Ross, the company’s CEO, has now shared those figures.

Cube’s customer base has expanded fourfold since the seed funding round, and revenue growth is exceeding customer acquisition. Furthermore, the company is experiencing a positive shift in its contract structure, with over half of new agreements now being multi-year commitments.

Investor Confidence and Product-Market Fit

During a conversation with TechCrunch, Rajeev Batra of Mayfield, Cube’s newest investor, highlighted the company’s impressive deal win rates, ranging from 60% to 70%. This suggests a strong indication of product-market fit.

Given Cube’s starting price of $850 per month, each successful deal contributes significantly to the company’s annual recurring revenue (ARR).

Batra also emphasized the high levels of user engagement within the Cube platform.

Future Plans and Capital Allocation

Ross, a seasoned CFO herself, expressed a cautious approach to fundraising, acknowledging the importance of responsible capital management. She affirmed a clear plan for the allocation of the new funds.

A key priority is expanding the team. Cube intends to triple its workforce by the end of 2021, focusing on both product development and go-to-market (GTM) roles.

The company also plans to bolster its marketing efforts, building upon the sales function that was established following the seed round.

Accelerated Funding Trends

Cube’s funding trajectory aligns with a recent trend of companies securing successive funding rounds at a faster pace than the traditional 18-month interval.

It is becoming increasingly common to see startups raising new capital just a few quarters after their previous funding event, as exemplified by M1 Finance, which also announced a new round this morning.

Looking Ahead

The success of Cube’s Series A round positions the company for continued growth. Maintaining its current momentum could potentially lead to another funding round later this year.