In a significant advancement for the realm of contract management, Formality, a Paris-based platform specializing in intelligent contract management for clients and suppliers, has announced the successful raising of €8 million in its initial funding round. This round was spearheaded by prominent venture capital firms Partech and Serena, alongside an investment of €2.4 million from BPI, the Bank of Public Investment.
Founded by a seasoned team of entrepreneurs—including the original creators of TVTY, a startup recognized for measuring TV advertising impacts that was sold to Nielsen in 2021—Formality aims to tackle a pervasive issue they encountered in their previous venture: the complex and often cumbersome management of client and supplier contracts. This challenge can severely impact a company’s financial health, with mismanagement costing businesses up to 9% of their revenue and leading to the automatic renewal of 60% of supplier contracts without any oversight.
Formality’s innovative platform addresses these critical issues by automating and securing contract management processes, centralizing essential documents, and enabling real-time tracking of important deadlines. This solution not only mitigates risks associated with contract management but also frees up financial and legal teams to focus on strategic initiatives rather than administrative burdens.
In a remarkably short time since its launch, Formality has attracted notable clients such as Electra, Resilience, and Lifen. The new funding will be directed towards strengthening the sales team, accelerating technological development, and paving the way for the company’s entry into the American market, slated for next year.
Eliot Reilhac, CEO and co-founder of Formality, expressed confidence in the platform’s transformative potential: “Formality is set to revolutionize how companies manage their contracts, bringing efficiency, security, and simplicity to what is often a convoluted process. The support from both Partech and Serena is a testament to the confidence in our vision and will enable us to achieve our international goals.”
Sébastien Le Roy, Partner at Serena, noted the team’s proven track record, stating, “Given our experience with the team during their leadership at TVTY, investing in Formality felt like a natural decision. They are exceptionally positioned to address a pressing challenge for many businesses today—navigating administrative complexities. Their ambition, coupled with their ability to attract top talent, places them on a trajectory to become a technological leader.”
Philippe Collombel, General Partner at Partech, added, “For medium-sized companies, inefficient contract management can be a drain on resources and finances. Formality meets a critical market demand, allowing businesses to concentrate on their core operations. With its unique SaaS product and innovative features, we believe Formality is well on its way to becoming a market leader.”
Editorial Perspective
Formality’s recent funding round marks a pivotal moment in the evolution of contract management solutions. The platform not only addresses the pressing needs of companies burdened by inefficient contract processes but also leverages advanced technology to streamline operations. In an era where businesses are increasingly expected to adapt to rapid changes, Formality’s focus on automation and centralized management is both timely and relevant.
The founders’ experience in the tech landscape, coupled with their understanding of the challenges businesses face in contract management, positions Formality for success. Their strategy of expanding into the American market underscores a commitment to growth and innovation that could redefine industry standards.
As businesses globally strive for efficiency, Formality’s approach could serve as a blueprint for transforming how contracts are managed, ultimately driving greater profitability and strategic focus for organizations.
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