Target Information

UNGUESS, originally founded as AppQuality in 2015 at the Polytechnic University of Milan, has established itself as Italy's leading crowdtesting platform following its rebranding last year. The company boasts a significant community of hundreds of thousands of testers, enabling rapid responses to client requests and numerous tests to be conducted simultaneously. UNGUESS offers a diverse array of services, including usability and customer experience optimization (UNGUESS Experience), functional testing and bug detection (UNGUESS Quality), and cybersecurity solutions with a team of 500 certified ethical hackers (UNGUESS Security). Currently, UNGUESS employs over 80 professionals and serves more than 300 clients across various industries, including prominent firms such as Pirelli, Costa Crociere, Sky Italia, ING, Enel, Lottomatica, Intesa Sanpaolo, and Axa.

The funds raised from this capital increase will be utilized to bolster UNGUESS's leadership in the Italian crowdtesting market and facilitate expansion into other strategic European regions. This initiative is part of a broader strategy that began in 2022, which also includes enhancing the UNGUESS platform with new solutions, content, and services tailored to meet client needs.

Industry Overview

The industry of digital testing and quality assurance has experienced significant growth, particularly with the rise of digital technologies across various sectors in Italy. As companies increasingly prioritize digital experiences, crowdtesting has emerged as a vital tool for ensuring product quality and user satisfaction. This growing emphasis on digital user experience is driving demand for rapid, reliable testing solutions.

Additionally, the cybersecurity sector is witnessing unprecedented attention, driven by increasing threats to data security and the need for robust protective measures. With the investment in certified ethical hackers, portfolio companies are in a better position to safeguard their digital assets through tested and validated measures.

Italy's economy shows a strong inclination toward investment in technology and innovation, further stimulated by government support and the growing number of tech-savvy consumers. The acknowledgment of crowdtesting as an essential process for developing user-centric products supports the evolution of businesses toward more agile and efficient operational models.

Moreover, the trend towards remote and distributed work environments amplifies the importance of employing innovative digital solutions for software testing, maintaining high standards for product quality despite geographical separations.

Rationale Behind the Deal

The capital increase of over €10 million is a strategic move designed to strengthen UNGUESS's competitive position in Italy and facilitate its expansion across Europe. With an expanding client base and a robust community of testers, the company is poised to cater to the increasing demand for effective and fast testing services as digitalization continues to take precedence.

Investors believe in UNGUESS's vision and business model, which demonstrates a clear potential for growth in a rapidly evolving market where user-centric products are paramount. The funding will enable the company to innovate further and offer more comprehensive services, making it a pivotal player in the digital landscape.

Investor Information

The lead investor in this capital increase is Fondo Italiano d’Investimento SGR, through its dedicated vehicle, the Fund for Technology and Growth (FITEC). This fund focuses on fostering technological advancements and supporting companies that exhibit strong growth potential. Other notable investors include P101 SGR, Italian Angels for Growth (IAG), and Club degli Investitori, all of whom have previously supported UNGUESS in its prior funding rounds.

These investors have a proven track record of backing innovative companies that can scale effectively within their sectors. Their confidence in UNGUESS reflects the company's solid foundation and strategic growth plans that align with industry demands.

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Assessing the merit of this investment, it is evident that UNGUESS operates in a growing market with increasing demand for crowdtesting and digital assurance services. The investment is poised to fuel significant growth, expanding the company's technological capabilities and enhancing its offerings.

Moreover, the presence of experienced management and a proven business model further underscores the potential upside. With established relationships with high-profile clients and a clear focus on user-centered solutions, UNGUESS is not merely positioned for steady growth but is set to become a leader in its industry.

Nonetheless, it is essential to consider competitive pressures in the rapidly evolving tech landscape. UNGUESS's success will hinge on its ability to innovate and adapt quickly to changing client needs and market dynamics. Continuous investment in technology and talent will be crucial in maintaining its competitive edge.

In conclusion, this investment seems to be a prudent decision given the current trajectory of the digital testing and cybersecurity industries, the solid backing of experienced investors, and the strategic vision presented by UNGUESS. Overall, it presents a significant opportunity for growth and success in the emerging digital economy.

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