Why we invested in Paccurate… again

Our portfolio company Paccurate recently announced a new funding round that we proudly followed on. When we first invested in the company, in the beginning of 2022, I shared that the main reasons to do so were the relevant pain point, favorable market conditions, and raving customer testimonials. While those are still true and relevant, knowing the business for the past year and a half and watching its growth, highlighted even more reasons for us to continue to support the company.

Team

When we first make an investment, the team is a critical, if not the most important, aspect of the due diligence, especially when investing in the early seed stages like Grand Ventures does. The focus on the team doesn’t necessarily go away when considering follow-ons. While it’s true that I don’t have to reevaluate the skills and experience of the founders, new elements can now truly be assessed. And one of the most important ones to me is the relationship with the board of directors.

Founders look and act their best when they are trying to fundraise. Don’t we all? It’s when you pass the “selling” phase that you truly see how a founder handles tough situations, admit mistakes, listen and act on advice, while also maintaining his/her own conviction. One would be surprised to hear the number of founders who simply ignore how important this relationship is and later act surprised when investors are not inclined to support a follow-on round.

I love working with Paccurate’s team and the entire BoD, and believe they have the right balance of calm and perseverance to continue to take the firm to the next level.

Customer engagement

At this point, after 1.5 years since the initial investment, we clearly see the value Paccurate’s smart cartonization platform and simulation tools are bringing to the customers. The retention and expansion are impressive, and enterprise customer testimonials are reassuring they have something unique to e-commerce brands that are pressured for cost reduction and margin improvements more than ever.

Path forward

With a clear value proposition and strong customer need, the next steps to take the company into a new chapter of growth are more predictable and the new resources from their $3.5M oversubscribed round can be more strategically allocated in those areas.

We are excited for Paccurate’s future and for continuing to be highly involved in its growth. Despite the overall venture capital numbers in comparison to the last two years, or the fact that supply chain deals are down, being part of this funding round is a great reminder that great companies, with great teams, strong product, and solid fundamentals will still be funded in any environment.