YouSign Raises $36.6M to Challenge DocuSign in Europe

Yousign Secures $36.6 Million in Series A Funding

The French startup, Yousign, has successfully completed a $36.6 million (€30 million) Series A funding round. Lead Edge Capital spearheaded the investment, with eFounders participating as a returning investor.

Focus on European E-Signature Compliance

Yousign operates as an e-signature provider, specifically designed to adhere to the stringent regulations governing digital signatures within Europe.

Strategic Partnership with eFounders

Although initially established in 2013, Yousign significantly evolved following a collaboration with startup studio eFounders in 2019. This partnership resulted in eFounders becoming a substantial shareholder and a vital strategic ally.

Growth in the E-Signature Market

The e-signature landscape has experienced considerable expansion since the collaboration. Numerous providers, including DocuSign, Adobe Sign, SignNow, and HelloSign, currently serve the market.

A European Alternative

However, Yousign aims to distinguish itself as a European-centric alternative to these predominantly American companies. The startup is concentrating on attracting small and medium-sized businesses (SMBs) that have not yet adopted an e-signature solution.

Targeting New E-Signature Users

Rather than attempting to migrate customers from established platforms like DocuSign, Yousign intends to focus on converting businesses new to the benefits of electronic signatures.

Accessibility and Ease of Use

“We have developed a solution that is both accessible and user-friendly, enabling SMBs to execute their initial document signings within an hour, rather than the typical month-long process often associated with more complex products,” stated Luc Pallavidino, co-founder and CEO of Yousign.

eIDAS Compliance and Legal Validity

Yousign functions as a certified authority and fully complies with eIDAS, the European regulatory framework for electronic signatures. This ensures the legal enforceability of signatures and secure document archiving through a partnership with Arkhineo.

Key Features and Functionality

The platform offers features common to other e-signature services, including:

• Document template creation
• Approval workflow design
• Automated reminders

Yousign prioritizes secure authentication and comprehensive timestamping of all signature events. Access to the service is provided through a subscription-based SaaS model.

Future Expansion Plans

The newly acquired funding will be utilized to expand Yousign’s reach to 50,000 European SMBs by 2024. Currently, the company serves 6,000 clients.

Revenue Projections and Hiring Initiatives

Reaching this target would translate to an annual recurring revenue of $85 million (€70 million). Yousign experienced significant growth in 2020, increasing its workforce from 35 to 120 employees, and plans to add another 150 employees within the next 18 months.