A successful startup studio, Hexa, recently announced its expansion beyond the studio model. After raising $22 million in funding just a few weeks ago, the Paris-based company is now partnering with later stage businesses that have already found product-market fit.
The new program, Hexa Scale, is specifically targeting B2B companies that generate significant recurring revenue (typically between €1 to €10 million annually) but are struggling with growth. These companies may have already received funding rounds, including a seed round and Series A, but are stuck in a linear growth pattern.
Hexa plans to step in and provide capital while assisting with international expansion, operations, product development, and marketing.
In 2012, Y Combinator co-founder Paul Graham wrote an essay called ‘Startup = Growth’. In it, he explains the ideal growth trajectory for a startup and the importance of maintaining a consistent growth rate over time.
According to Graham, tracking a target growth rate instead of a specific revenue amount allows for easy comparison (quarter over quarter, year over year). This approach is also beneficial because it can lead to exponential growth for a company if the growth rate is maintained.
VCs tend to favor startups with an exponential trajectory, making it difficult for linearly growing companies to secure further funding. This can be particularly challenging for companies with a large team and high operating costs.
Hexa’s new program, Hexa Scale, aims to help these companies regain exponential growth. The program will be led by Augustin Celier, a serial entrepreneur who has co-founded multiple successful startups in the past.
“I’ve been building companies for the last 15 years. For my last venture, we ended up in a financing no-man’s land, which led us to a fire sale. Hexa Scale represents a third path for companies in that situation,” said Celier.
Celier’s experience with his last venture, which ended in a fire sale due to limited funding options, inspired him to take on this new endeavor. Hexa has a strong track record of launching successful B2B SaaS startups, such as Front, Aircall, and Spendesk.
However, this is not the first time Hexa has partnered with later stage companies. It has previously worked with Yousign, a company that now processes over 5 million e-signatures per month for 17,000 customers.