In a pivotal move that marks a key transformation, Early Metrics, Europe's leading rating agency for innovative startups and SMEs, has chosen to focus its resources on its ScaleX software. Its Market Intelligence division, dedicated to the research and analysis of cutting-edge technologies, has found a new home with RaiseLab, a joint venture between Raise and Schoolab that facilitates transformative partnerships between large companies and startups.
Early Metrics, renowned for having carried out more than 8,000 startup ratings and 200in-depth market studies between 2014 and 2023, has guided nearly 300 clients, including major companies in France, the UK and Germany. The agency's database has grown steadily with around 300 startups added every month. With the migration of this function to RaiseLab, Early Metrics is taking a 360-degree turn in its trajectory. This metamorphosis is underlined by the departure ofAntoine Baschiera, co-founder of Early Metrics, who is taking on the role of Director of Development at RaiseLab.
This strategic divestment comes as no surprise, given the considerable evolution of the startup ecosystem since the first startup rating agencies appeared fifteen years ago.
"A significant segment of the market has evolved and refined its expertise.Whereas in 2020-2021, venture capital funds systematically demanded comprehensive, methodology-based rating reports written by analysts, today they are more discerning,"
explained Sébastien Paillet, co-founder of Early Metrics, in an interview with Maddyness.
In this fast-changing environment, Early Metrics has set out to capitalise on its experience and backtesting analyses to develop ScaleX, an innovative automated startup scoring software that leverages the power of data and artificial intelligence.
ScaleX is designed to provide banks and investment funds with advanced tools to make well-informed investment decisions.
This cutting-edge tool has already attracted attention and traction from organisations such as Innovate UK, the UK equivalent of Bpifrance, and Euronext.
SébastienPaillet explains:
"We recognised that there was a wider opportunity to extend our software offering, enabling us to assess businesses, identify risks and continuously track their performance. In 2022, we experienced strong traction and the need for a strategic realignment became clear. As a result, we made the decision to channel all of our efforts into this data and AI-focused software business."
Early Metrics is therefore moving from a services company to a software solutions business with different operational paradigms and communication strategies. The ultimate challenge is to create a high-quality product that is robust and secure, given that it drains private data.
So let's turn the spotlight on ScaleX, an innovative startup scoring platform. Thanks to our valuation module, our aim is to help our clients value the companies in their portfolios and monitor their portfolios and their potential over time. We have also developed an ESG scoring module to assess the environmental and social impact of tech companies, so that our clients can check the sustainable nature of their portfolios.
In short, our software solution aims to give banks and investment funds the analytical tools they need to streamline their investment process, maximise returns and minimise risk. The evolution of Early Metrics into ScaleX is a testament to the transformative power of data and artificial intelligence in startup valuation. This strategic change reflects our belief that innovation andtechnology are the driving forces behind success.