SCRM Solution riskmethods Will Use New Capital to Expand to U.S. Market

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Supply chain risk management solution provider riskmethods raised about $6 million in a Series A financing round, new capital the Munich-based company will use toward creating a riskmethods division in the U.S., the company announced Tuesday.

"We are particularly encouraged by our most recent success in the U.S. to use this investment to set up a subsidiary,” riskmethods Managing Director and Co-Founder Rolf Zimmer said in a press release. “Furthermore, we will promote the expansion of a partner network, as well as sales and customer success management structures. This will enable us to consolidate our position as market leader in Europe and the U.S., and also expand our market position."

The riskmethods investment round was led by EQT Ventures, which invests mainly in European startups. EQT is also a new investor for riskmethods. Existing investors Senovo, Point Nine and Bayern Kapital also provided new capital in the Series A funding round, riskmethods said.

We are not surprised riskmethods is planning to use some of these new funds to make a bigger impact on the United States this year. Heiko Schwarz, riskmethods’ co-founder and managing director, told Spend Matters recently about the company’s goal to “win the U.S. market” in 2016.

Even though riskmethods currently operates mainly in Europe, Spend Matters’ believes the company’s SCRM tool would be useful for most firms around the world operating a global supply chain, as it provides additional visibility and can encourage procurement organizations to create mitigation plans for possible supply chain risks — and the more global a deployment, the greater the value.

Jason Busch, founder and head of strategy for Spend Matters, said riskmethods’ solution is one that is easy to get up and running quickly. It is also complementary to existing supplier management, specialized governance, risk and compliance (GRC) and risk management solutions out there.

“Given this is where riskmethods excels, I suspect it will not only stand alone at some companies getting started with supplier risk management programs but as often will sit alongside other third-party solutions in more advanced organizations with existing programs in place already,” Jason said.

Jason predicts riskmethods’ endeavour in the U.S. market will prove successful.

“I expect that riskmethods offering will resonate very well in North America in 2016,” he said. “In a recent analysis, we found that supplier risk management and supplier management are trending topics that our readers are clamouring to learn more about. The timing is right for this expansion.”

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