Codavel raises EUR 1.3 million in round led by Armilar

Porto, March 5, 2020 - Codavel, a company with the mission to help mobile applications ensure every user gets an outstanding experience, whether they’re connected through a fast WiFi network or a slower 3G connection, announced a €1.3M seed round led by Armilar Venture Partners.

App responsiveness is paramount for good user experience: if the app takes more than 3 seconds to load the desired content, 72% of the users leave the app. That’s why companies with mobile apps make a tremendous effort to ensure that every user experiences a fast and responsive app. However, even if they build the "perfect” app, the end-user experience will always depend on factors like network coverage and network’s level of usage: app loading times are completely different on a fast WiFi connection at home, on a crowded 4G connection in the city center or on a 3G connection in a less central location. As a result, metrics like user retention, conversion, and even revenue, are highly dependent on something app owners do not control: wireless networks.

To help mobile app owners prevent wireless link instability from destroying their efforts to ensure perfect user experience, Codavel developed an SDK that supports apps ensuring they are always fast, regardless of user location, device, network, content nature or source. Codavel SDK achieves this goal by using Bolina, a ground-breaking communication protocol specially designed to cope with the inherent instability of wireless links. With Codavel SDK, mobile apps see loading times decreasing by 20% to 80%, while ensuring that app responsiveness is similar over every network connection. And all developers have to do is to drag-and-drop the SDK into the app.

"We have proven that we can make a difference for mobile apps determined to improve their users' experience, even in the most adverse network conditions, beyond the point where CDNs (Content Delivery Networks) are useful. For most industries, improving users’ experience has a direct and measurable impact on their revenue, and the inherent unpredictability of wireless links is jeopardizing business outcomes. Although it is an interesting step forward, 5G will not be the answer: it’s still a wireless link", says Rui Costa, Codavel's CEO and co-founder.

"Codavel has a perfect fit with our AVP V TechTransfer Fund. The company emanates from the founders’ PhD research at Universidade do Porto and MIT, and holds significant IP rights to execute the company’s strategy.  Most importantly, Codavel is led by a bright, mature and knowledgeable team. We are confident that Codavel has the potential to bring the mobile app experience to a new level, in particular as video, gaming and other data-demanding applications will become more and more relevant in the wireless arena.", said José Guerreiro de Sousa, partner at Armilar Venture Partners.

Portugal Ventures (the Portuguese venture capital public operator) and Ideias Glaciares (a business angel vehicle that provides early-stage investment to tech entrepreneurs) also invested in the round, which counted with the participation of 200M (a matching fund that aims to foster co-investment in Portuguese high-growth startups).

"It is with great satisfaction that Portugal Ventures contributes to this important step in Codavel's growth. Portugal Ventures has been supporting Codavel since its inception and it has been gratifying to see its evolution. We are confident that Codavel’s team will qualify the product to be a global reference for mobile content delivery.”, said Rui Ferreira, Executive Vice President at Portugal Ventures.

"We are delighted to be joining this round with Codavel. We see a great team tackling a big problem with breakthrough technology. That's a powerful combination." said Dominic Gualtieri, partner at Ideias Glaciares.

Codavel’s ultimate mission is to help internet-based services ensure every user gets the best experience possible, regardless of user location, device or network, or content nature or source. "In the 15th century, the Portuguese revolutionized the way goods were transported worldwide. They gathered the best knowledge, mobilized a small country towards a vision and made the most effective use of the scarce resources available to disrupt and improve how the world was connected. We believe that one of the most valuable goods today, digital content, is ripe for a similar revolution. A revolution that can dramatically improve how end-users are connected in this digital age, worldwide.” said Rui Costa.

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About Codavel

Codavel helps mobile apps ensuring every user has a 5-star experience, whether they’re connected through a fast WiFi network or a sluggish 3G connection. Codavel is working towards a world where internet-based services are frustration-free. For every user, anytime, anywhere. To learn more about Codavel, please go to www.codavel.com

About Armilar

Armilar Venture Partners is Portugal’s leading venture capital funds manager. An independent VC with a 20-year-old history, a high-performance track record and an international footprint, Armilar is a deep-tech investor, investing in ICT, HealthTech and CleanTech with a focus on early-stage technology-based companies. Currently, Armilar has a total of about €260 million under management, with five funds deployed typically as lead investor in seed to early-stage deals in companies in Portugal, Europe and the USA. To find out more and to register for news, please go to www.armilar.com

About Portugal Ventures

Portugal Ventures is a state-owned venture capital firm that invests in startups with global ambition. Portugal Ventures invest in Portuguese startups and in startups with registered offices or business in Portugal, in the seed or early stages, operating in the Digital, Engineering & Manufacturing, Life Sciences and Tourism sectors. Since 2012, Portugal Ventures has invested 140 million euros in more than 120 new companies.

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The Fundo de Capital de Risco Armilar Venture Partners TechTransfer Fund is supported by InnovFin Equity, with the financial backing of the European Union under Horizon 2020 Financial Instruments and the European Fund for Strategic Investments (EFSI) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing. The fund is also co-financed by Fundo de Capital e Quase Capital (FC&QC), managed by IFD — Instituição Financeira de Desenvolvimento, S.A.

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