The Munich startup Integrity Next has been successful with bootstrapping, now the first investor is coming on board with EQT Growth. An IPO is also conceivable in the long term.
The Munich startup Integrity Next has completed one of the largest German financing rounds in recent times. As the Handelsblatt reports, Swedish venture capitalist EQT Growth is investing EUR 100 million in the company. EQT set up a billion fund for this a few months ago. Integrity Next, founded in 2016 by Martin Berr-Sorokin, Simon Jaehnig and Nick Heine, has developed a software platform that companies can use to control and manage CO2 emissions or compliance with human rights along the supply chain.
Sustainability in production is the latest for German companies since the Supply Chain Act came into force at the beginning of the year an important topic. In the future, breaches of human rights or environmental regulations by suppliers could result in fines in the millions. Integrity Next’s platform enables companies to access real-time information on thousands of suppliers worldwide. For this purpose, the tool uses publicly accessible databases, but also media reports.
read too
Integrity Next relied on bootstrapping for years
The company had previously financed itself and claims to be profitable. According to the company, customers include Evonik, Henkel and RWE. “We were not under pressure to raise capital,” said co-founder Berr-Sorokin, according to Handelsblatt. “But now is the right time to invest in growth.” In the future, the company also wants to focus more on medium-sized companies.
According to the report, investor EQT also wants to provide operational advice to the management of Integrity Next in the future. EQT Growth Partner Dominik Stein said the company should grow significantly in order to cover the ever-expanding market for sustainable corporate management. An IPO is also conceivable in the long term. According to the Handelsblatt, experts estimate the potential market for supply chain software in Europe at around two billion euros.
read too
