Founded in 2016, Qunomedical is revolutionizing patient care with its CRM solution. The platform streamlines communication and administrative processes between clinics and patients, ensuring a more efficient and personalized healthcare experience. Based in Berlin, the company’s team of 50 employees transforms how hospitals manage their patient relationships.
Seize growth opportunities as stepping stones to profitability
"There’s no immediate pressure to secure new funding from VCs," says Sophie Chung, CEO and founder of Qunomedical, a Berlin-based health tech company established in 2016. "Our development is on track, and we continue to see significant growth potential. At the same time, we're close to break-even."
The company is committed to driving growth until it achieves profitability. As Sophie puts it, "Our goal is to boost our revenue by an additional 30% to reach an optimal level."
Securing a VC round shortly before reaching break-even does not make sense
The goal here is to drive growth to profitability, ultimately securing a higher valuation in future funding rounds. Sophie clearly understood that pursuing an equity round so close to breaking even and with imminent growth on the horizon would be counterproductive.
She emphasized,
“Raising equity now wouldn’t be a smart move given our near break-even point and the expected surge in growth. We need to demonstrate traction once more and enter the next fundraising round from a position of strength. Additional dilution at this stage would only be detrimental.”
So, how to finance growth? Initially, alternative financing options didn’t play a significant role. This wasn’t due to a lack of viable instruments but rather because the available offers didn’t align with Qunomedical’s needs. "We engaged with alternative lenders, but they struggled to accurately assess some of our revenue streams," Sophie explains.
Qunomedical's reliance on both paper invoices (in PDF format) and digital payment methods (such as PayPal and Stripe) led to an oversight. The talked to several providers but they only assessed the revenues processed through digital payment platforms and overlooked those from traditional invoicing.
Flexible debt designed to bridge the gap until profitability, allowing for a more favorable equity financing round
"During our initial conversation, I brought this issue directly to re:cap," Sophie explains. "However, their reaction and the follow-up process turned out to be entirely different from what I anticipated."
The re:cap team took a deep dive into Qunomedical's business model.
"They consistently probed into every aspect of our operations. The team was determined to grasp not only how we generate revenues but also our cash flow needs and timing for various measures," says the founder.
Funding plan align capital requirements with timing for an optimal impact
re:cap consolidates all data from the business plan, sales reports, bank records, and accounting details to craft a comprehensive funding plan for Qunomedical. This also includes revenue from invoices that are issued exclusively in physical form.
Sophie highlights, "Working with re:cap was both flexible and pragmatic. We were consistently updated on current and forthcoming steps, received prompt feedback, and had a clear understanding of our position in the due diligence process."
This open and transparent communication fostered a strong sense of trust.
Qunomedical has secured approximately €800,000 in flexible financing from re:cap. This capital is accessible to align with its evolving business plan and cash flow needs. The SaaS company is channeling these funds into bolstering its sales and marketing efforts, as well as enhancing its own software product.
"Our development is on a strong trajectory. We aim to harness this momentum and concentrate fully on growth ahead of reaching our break-even point," says Sophie, outlining the company’s strategy for the upcoming months.
