Hypergrowth and the mid-market adoption of treasury technology

By Kyriba December 3, 2014

The EuroFinance Managing International Rapid GrowthConference takes place December 8-9 in San Francisco. This is the first conference of its type that focuses specifically on treasury for fast-growth international companies, and its establishment reflects a trend that we’re seeing, with treasury management becoming a critical issue among mid-market organizations. Why do we see this as such an important move?

Treasury management systems have traditionally been viewed as the preserve of large, established companies. However, the trend of the past several years towards aggressive, global, “hypergrowth” is leading to a sea-change in the way that treasury and finance teams view the need for a TMS. The mantra, particularly among consumer technology companies has been to grab market share, not only through sustained organic growth, but through an aggressively global expansion and acquisition strategy, often fueled by venture capital investors looking to benefit from huge valuations. 

Given that these fast-growth brands often have revenues traditionally viewed as under the threshold required to necessitate a TMS, what are the factors driving their adoption among these fast-growth companies? Issues to consider include:

  • Regulations often vary by country, and can frequently be difficult to navigate.
  • There are tax implications that need to be taken into account as money moves internationally.
  • Fast growth companies typically focus on sales team growth, and often don’t have in-county treasury specialists, so treasury operations need to be handled centrally.
  • Rapid growth requires lots of cash!

As such, these organizations need complete and timely visibility on their cash and liquidity, as well as the ability to monitor financial risks and compliance, and establishing audit trails. Having ready access to liquidity becomes even more critical when you’re operating in hypergrowth mode, and global processes aren’t necessarily carved out in stone.

For these companies to continue to manage sustained fast growth, treasury more often than not MUST take a front seat. We’ve seen many examples of fast-growth organizations where treasury is critical to powering the growth. These firms understand that cash is king and that a high level of agility is needed – much more so than in established, multi-billion dollar firms.

In addition to their meteoric growth, another common factor among this type of companies is that they are typically very technology savvy in their approach to business organization, and see the benefits of leveraging next generation solutions such as SaaS. They understand the power of enabling growth with cloud finance solutions, which provide an incredibly agile way to address global and growing firms and teams. Whether they be Silicon Valley or Mumbai based, it’s easy to add new users, make new bank connections, add new workflows with a SaaS solution.

We’re delighted to be sponsoring the EuroFinance Managing International Rapid Growth Conference, and we look forward to seeing you in San Francisco.

1http://www.eurofinance.com/conferences/managing-rapid-international-growth

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