BrazilBCG backs $12.5 million funding round of French software firm CAST
Strategy consulting firm BCG has invested in French software giant CAST as European tech companies enjoy a recent resurgence in funding from venture capital and private equity sources. Consultancy partnerships are among CAST’s major strengths and BCG’s vote of confidence comes after a period of unrivalled technological innovation for the firm.
A pioneer in the emerging field of software intelligence, CAST provides its global clients with analytics-based insights. Many of the firm’s clients are listed on Forbes Global 2000 (including Wells Fargo and General Electric) and value CAST’s ability to identify and treat software weak points before they become major commercial headaches.
Founded in 1990 and headquartered in Paris, the firm commanded revenues surpassing €36 million in 2017. Having invested almost €20 million in technology innovation in the past three years, the company – led by founder Vincent Delaroche – hopes to continue its dynamic growth thanks to a successful round of capital funding in which $12.5 million (€10.7 million) was raised.
Leading strategy consultancy the Boston Consulting Group (BCG) was among the backers. Precisely how much support the consulting firm provided is unclear but French investment firms Keren Finance and CM-CIC investment are known to have made substantial contributions.
CAST’s growth acceleration plan involves expanding its client base, and partnerships with professional services players that serve as implementation and knowledge partners. Among these partners are BCG, but also McKinsey & Company, and IT consultancies Accenture, Cognizant and IBM. CAST also works closely with a range of technology consulting firms involved in cloud migration, IT architecture and cybersecurity.
In funding the firm, BCG is backing a horse that enjoyed 27.9% growth in Q1 of 2018. The specialised portfolio analysis practice, CAST Highlight, even recorded an enviable 212% quarter-on-quarter growth. Within two years the firm’s senior leadership is expecting 15% CAGR and profitability in the double digits.
The American consultancy has a stake in CAST’s success outside of its financial commitment. In 2015 the two firms signed a strategic partnership to incorporate CAST’s software intelligence platform into BCG’s Technology Advantage practice.
