East Germany delivers a "unicorn", a start-up company worth billions.

Staffbase from Chemnitz, a provider of internal corporate communications, is valued at more than one billion euros in a new round of financing.

That's what the co-founder and managing director Martin Böhringer and the investor General Atlantic's partner Achim Berg said in an interview with the FAZ.

The private equity house is leading this fifth round of financing, with Staffbase receiving 106 million euros.

Klaus Max Smolka

Editor in Business.

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Founded in 2014, Staffbase delivers software to internal corporate communications departments.

It started with a mobile phone app that companies use to inform employees away from their desks, such as production workers and field workers.

In the next step, Staffbase developed editorial systems.

Customers are, for example, Deutsche Post DHL and MAN Truck & Bus, who design their internal homepage with Staffbase software.

Finally, an e-mail system for newsletters is on offer.

Internal corporate communications

The comprehensive product package was decisive for General Atlantic to invest in this company, said Berg.

"The breadth of the different options that Staffbase offers is unique in the industry." They have looked at the market for employee communication for many years.

The potential for Staffbase on the world market is immense.

"There are at least 50,000 companies that urgently need this solution." Böhringer named Firstup from the USA, Poppulo from Ireland and the German Haiilo (formerly Coyo) as competitors for individual Staffbase products.

According to its own information, Staffbase currently serves 2,000 customers with 600 employees.

Sales doubled in 2021, also driven by two acquisitions in Canada and Finland.

As a specific key figure, Böhringer only mentioned the turnover that can be expected in the next twelve months on the basis of concluded contracts.

This value was over 50 million euros in the fourth quarter of 2021.

Böhringer highlighted North America as a strong growth market and cited this as one of the reasons for the fresh round of financing.

"We see a real opportunity there and globally to go a step further in the next twelve to 24 months."

General Atlantic and other investors hold 75 percent of Staffbase, 25 percent of the management and employees.

The existing investor Insight Partners is also participating in the latest cash injection.

General Atlantic – known in Germany for its involvement in Flixbus – entered Staffbase in the fourth round of financing.

In dollars, Staffbase raised $115 million in the most recent round, totaling $295 million in five stages since 2016.