On November 10, 2020, CEE Legal Matters reported that Cobalt had advised Passion Capital on its USD 1.4 million seed-round investment into Warren.io. CEEIHM spoke with Tarmo Tael, Co-Founder & CEO at Warren.io, to learn more about the deal.
CEEIHM: Please tell us about Warren.io and its history.
Tarmo: Warren is a complete self-service cloud platform for regional infrastructure service providers.
Established initially as a side project, Warren was incorporated in 2016 out of a need for a platform to manage e-commerce projects across different local data centers to host providers more efficiently. Discussions with these providers led to the development of a complete feature-rich platform, packaged as a service that manages everything between the hardware and the end-users.
The long-term goal is to unite local infrastructure providers into a coherent network. The network will enable local cloud providers to accommodate clients with international reach through automatically cross-selling resources. The end-user can consume all underlying infrastructure through a single API and user interface.
CEEIHM: What was it about your business model that made it particularly attractive for Passion Capital?
Tarmo: It's best to answer this with a quote from Giuliano Sison of Passion Capital, who said, “we’re thrilled to be partnering with Warren in order to enable local cloud providers to offer best-in-class provisioning and service reliability to their customers. This market continues to grow at a phenomenal rate and Warren is perfectly positioned to serve that at great scale.”
CEEIHM: What is the USD 1.4 million intended for?
Tarmo: The new funds will be used to further develop the scaling capabilities of the platform to support larger deployments, automate expansion of each location, and onboarding more service providers in even more markets.
CEEIHM: How was the deal initiated? Did you seek out potential investors or were you approached? if the first, how did you identify Passion Capital as the right investor?
Tarmo: We were looking for investors who understood the vision and were focused on the long-term goal. We see that many of the early-stage investors today are short-term focused, which is understandable as it seems less risky, but that just doesn’t work for us, considering what we aim to do. Our discussions with Passion Capital focused on the long-term goals and strategies right from the start, and that felt like a breath of fresh air.
CEEIHM: Why did you turn to Hedman Partners for assistance on this matter and what was their mandate specifically?
Tarmo: We have worked with Headman Partners from quite early on. They helped us back when we raised angel funding and they were very professional and agile at the same time. The process was well organized and smooth regardless of the complications brought by the COVID-19 outbreak. The firm facilitated all legal conversations with everyone involved and prepared all paperwork from employee and IP agreements to shareholder agreements.