As a female entrepreneur who has bootstrapped her way through the highs and challenges of building startups, I know how crucial access to funding is. When I came across the news that Shop Circle secured $100 million in credit to position itself as Europe’s alternative to venture capital (VC) funding, I could see why this story matters. For many founders navigating the European startup ecosystem, VC funding can seem like the holy grail. Yet, as someone who’s deliberately avoided it, I’ve consistently asked myself if there’s a better way. Shop Circle seems to think so and is making serious financial moves to prove its point.
This announcement opens up a powerful discussion about alternative growth strategies and what it means for the European software landscape and beyond. Let’s unpack this.
The Shop Circle Model: A Strategic Move Against Stagnation
Shop Circle operates within the business-to-business (B2B) software space, focusing on smaller, niche applications that are mission-critical to their clients. These are the kinds of tools that run quietly in the background, reliably solving very specific problems for thousands of businesses. So far, they’ve completed 16 acquisitions, creating a portfolio of software that benefits from shared technology and management expertise.
Rather than chasing the venture model’s obsession with exponential growth, Shop Circle offers a solution for what their study, The European Software Paradox, highlighted: small-scale but high-potential B2B firms in Europe often fail to become global players because they don’t have the resources or guidance to scale effectively. Their answer? Acquire, integrate, and build them into sustainable profit engines.
With backing from i80 Group and the newly secured $100M credit line, this “grow through acquisition” approach is set to speed up. Check the full article at Tech.eu.
Here’s why this strategy is so promising:
1. Alternative to Traditional VC
Venture funding has dropped alarmingly in Europe, falling from $117 billion in 2021 to around $51 billion in 2024. But even when that capital was more accessible, only the loudest, fastest-growing startups were given the spotlight. Shop Circle’s approach sends a clear message: not every company needs hyper-scaling fueled by traditional VC funds.
2. Operational AI Makes It Better
Instead of chasing buzzy tech, Shop Circle uses AI where it genuinely adds value, for instance, by streamlining customer support or improving internal workflows within the portfolio companies. By the time they’re done integrating, profits soar. Their reported boost in EBITDA margins (15%-20%) is an enviable transformation.
Lessons for Female Entrepreneurs in Europe
Shop Circle’s rise is exciting not just for investors or tech enthusiasts but also for bootstrapping founders like me. The appetite to address overlooked niches in the startup world is growing. As a founder pouring my resources into Fe/male Switch to teach women entrepreneurship, here are some key takeaways that other female entrepreneurs might embrace:
Embrace Niche Markets
Shop Circle’s strategy serves as a reminder that success is often found in places where the spotlight isn’t shining. In Europe, the majority of software companies are niche players, whether they serve logistics coordinators, local manufacturers, or regional recruiting firms. These are not glamorous markets, but their profitability can far outpace shinier sectors in the long term.
Seek Smarter Financing
Raising VC funding can be unfavorable if the terms don’t work in your favor. Securing credit for your operations, cutting deals, or bootstrapping can give you full control over your business. Go beyond the hype, Shop Circle did, and they now blend the stability of long-term financing with growth through acquisition.
Build-To-Keep Mentality
The VC model thrives on exits, buyouts, IPOs, or collapses if all else fails. Shop Circle flips the lens, aiming to make all its acquisitions permanent. This creates a portfolio that generates ongoing value without the stress of hitting overambitious KPIs at any cost. For female entrepreneurs, the takeaway here is simple: sustainability beats short-termism.
A “How-to” for Bootstrapping Growth
If you’re seeking to expand without VC, here’s the formula Shop Circle seems to be using:
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Identify High-Value Problems: Shop Circle acquires software firms solving essential, niche problems. For your startup, this means refining your solution to something indispensable.
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Use External Capital Thoughtfully: Not all funding has to come from equity forfeiture. Research lenders or investment partnerships, like i80 Group’s support for Shop Circle, that suit your ethos.
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Optimize for Scalability Through Processes: AI-powered operational improvements, like automating customer support, create margin growth. Start small by outsourcing low-value tasks or investing in scalable tech tools.
Common Mistakes to Watch
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Chasing the Wrong Funding
Signing up for VC funding can sound appealing, but the wrong agreement can limit rather than expand your entrepreneurial journey. Avoid ballooning expectations that don’t align with your business model. -
Focusing Exclusively on Growth Metrics
Growth needs to be earned through loyalty and good execution, not blindly bought at unsustainable costs. -
Misusing Artificial Intelligence
If you’re applying AI as a gimmick, it could backfire. Like Shop Circle, focus on using it to solve operational bottlenecks and improve efficiency.
Why Shop Circle Matters for European Entrepreneurs
Unlike the Silicon Valley method that seems to dominate startup culture, Shop Circle is paving a refreshingly practical, grounded path. It highlights a way to grow businesses steadily, without the often chaotic pressures of venture funding.
European founders, and particularly women, could find inspiration in this model. We already see the dangers of hyper-growth mentality, especially during economic slowdowns when once-coveted startups struggle to justify their valuations. And if you’re someone who’s been turned away by VCs for not fitting into their stereotypical founder archetype, this story just shows that alternative financing and operational excellence are equally valid paths.
Conclusion
Women in Europe, the opportunity is yours to seize. Shop Circle’s financing demonstrates that bootstrapping or funding through credit instead of selling pieces of your dream is not just doable but also increasingly popular. To build something meaningful, you don’t have to take the conventional route. You need to be smart with your resources, focus on solving problems well, and stay aligned with what matters to you as a founder.
Take a page out of Shop Circle’s book, and let this story nudge you towards funding paths that respect your autonomy and vision. The future for female entrepreneurship lies in valuing the journey as much as the result, working toward not just growth but sustainable success.
And as I always say to our players in the Fe/male Switch game, every big idea needs a strong foundation. Build that foundation, and the possibilities are yours to explore.
FAQ
1. What is Shop Circle's business model?
Shop Circle operates a buy-and-build strategy, acquiring and scaling niche B2B software companies. Their model focuses on applying AI solutions to optimize operations and improve profitability. Learn more about Shop Circle's model
2. What is the significance of Shop Circle's $100 million credit facility?
The $100 million credit facility from i80 Group will enable Shop Circle to accelerate acquisitions and scale its portfolio of B2B software products, offering an alternative to traditional venture capital in Europe. Discover how Shop Circle uses this funding
3. Why is Shop Circle avoiding traditional venture capital?
Shop Circle prefers credit funding over VC to maintain control and avoid the traditional VC focus on hyper-growth and exits, aiming for sustainable profitability instead. Explore the advantages of their funding approach
4. How does Shop Circle use AI in its operations?
Shop Circle applies AI to improve internal operations, such as streamlining customer support and automating repetitive tasks, which boosts profitability for acquired companies. Learn about Shop Circle's AI usage
5. What kind of companies does Shop Circle target for acquisition?
Shop Circle targets niche, mission-critical B2B software companies with high customer retention and profitability potential, especially those overlooked by traditional VCs. Find out more about Shop Circle’s acquisitions
6. What are some examples of companies similar to Shop Circle in Europe?
Examples of similar companies are Bending Spoons, which focuses on acquiring consumer apps, and Visma, known for its M&A in AI-driven SaaS tools. Learn about Bending Spoons | Explore Visma’s strategy
7. How does Shop Circle's funding strategy address the decline in VC funding?
By using credit facilities, Shop Circle offers an alternative to VCs, focusing on sustainable growth during a time when European VC funding has sharply decreased. Discover the context behind European VC trends
8. What is the "European Software Paradox," and how does Shop Circle address it?
The "European Software Paradox" refers to the challenge of scaling European software companies globally. Shop Circle counters this by acquiring and consolidating smaller firms while applying AI tools to enhance scalability. Understand the European Software Paradox
9. What kind of growth results has Shop Circle achieved so far?
Shop Circle claims to have improved EBITDA margins by 15–20 percentage points across acquired companies, demonstrating strong operational and financial gains. Read about Shop Circle's performance metrics
10. How can Shop Circle's strategy inspire female entrepreneurs?
Shop Circle showcases that success doesn't require traditional VC funding. Instead, female founders can explore niche markets and alternative funding options, like credit, to maintain autonomy and achieve sustainability. Get inspired by Shop Circle’s success
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
