Usercentrics announces a successful Series A financing round of several million euros. The fresh capital will be used for product development and further customer growth.
As the startup in the field of consent management platforms (CMPs) announced, the Series A financing round is being led by growth fund Alstin, with participation from existing investors Cavalry Ventures and Reimann Investors. Angel investor Alexander Gösswein also participated.
Loud Usercentrics The fresh capital will be used to further accelerate product development and customer growth.
“Without consent, personal data is worthless”
The Usercentrics software enables companies to collect, manage, and document user consent in accordance with the data collected. Several hundred of the startup's customers, such as Telefonica, T-Mobile, and Commerzbank, are already using this technology.
“The correct management of user consent has become a very relevant constraint for data-driven business models and thus a competitive advantage,”
explained Mischa Rürup, founder and managing director of Usercentrics.
If personal data is processed, the company must prove its origin, the exact purpose, the duration of the processing, and many other attributes. Rürup continues:
"If this isn't possible, data dating back several years may have to be deleted retroactively if the relevant consents are not correctly obtained. This leads to a loss of customers and revenue. The company thus exposes itself to a significant risk that far exceeds the 4 percent penalty stipulated in the GDPR."
Rürup continues:
"Without consent, personal data is worthless; and without data, consent is worthless. Data and its consent only become a success factor through merging."
Usercentrics therefore generates consent IDs and attaches them directly to the data, so that the consents are linked to the data.
“We are seeing a significant increase in interest in our solution, particularly from risk-averse customers in the automotive, insurance, and banking sectors,”
explains Rürup in conclusion.
For Usercentrics, international expansion will be achieved primarily through scalable strategic partnerships and white-label solutions for agencies and technologies.
In April Usercentrics We have hired experienced Google manager Jürgen Weichert as VP of Business Development. As the former Head of Strategic Partnership Development at Google DACH, he and his team built partnerships that generated over $100 million in quarterly revenue. In his new role at Usercentrics, he will now further advance the development of a global partner program.
“Data protection is currently the mega-topic”
Carsten Maschmeyer, Managing Partner of Alstin, says:
"Data protection is currently a mega-topic. Usercentrics, as a privacy tech startup, is an impressive pioneer with the potential to become a global market leader. Many companies will need Usercentrics if they want to continue to operate their data processing business models in compliance with the law in the future. Not just in Germany, but worldwide."
And Michael Riemenschneider, Managing Director of Reimann Investors, commented:
"In recent months, Usercentrics has demonstrated that demand for European consent management software has increased significantly. The market is at an early stage, and as a first mover with a market-leading position, Usercentrics already has a unique advantage over existing and new competitors."
Usercentrics offers an out-of-the-box solution
Also Stefan Walter, Managing Partner of Cavalry Ventures, sees great demand in the global market and says:
"Data protection has become indispensable when evaluating and assessing companies with digital business models. This can have both positive and negative effects, depending on how much the company values principles such as privacy by design and privacy by default. Usercentrics offers an out-of-the-box solution in this mission-critical and technology-intensive area."
