Business loan co Fundbox raises $40m

dollars  picture: Thinkstock
dollars picture: Thinkstock

Fundbox CEO: Our data-driven engines can transform the entire small business economy and B2B transactions.

Business loan company Fundbox has raised $40 million in Series B financing led by General Catalyst Partners. Existing Fundbox investors Khosla Ventures, Shlomo Kramer, Blumberg Capital and others along with new investor NyCa Investment Partners also participated in the round. The company also announced a new credit facility in partnership with Silicon Valley Bank and other institutions.

Headquartered in San Francisco and with its development offices in Tel Aviv, Fundbox bills itself as a cash flow optimization tool for small businesses by providing loans for outstanding invoice payments. The company was founded by CEO Eyal Shinar and CTO Yuval Ariav.

Fundbox's growth has surged over the past 18 months, surpassing 300% in quarter over quarter growth. The financing will enable the company to further accelerate its rapid expansion, innovation and product development, as well as increase its marketing efforts to reach small businesses.

Shinar said, "This investment provides Fundbox with greater capacity and resources to bring data science backed financing solutions to small business owners. Our vision transcends just cash flow solutions, as our proprietary data-driven engines can fundamentally transform and modernize the entire small business economy and B2B transactions."

According to a US bank study, 82% of business failures are due to poor cash management. Fundbox's innovative capital on demand approach is a transformative solution to fix that pain point. The Fundbox tool is embedded directly into the workflow of a business, through existing accounting, e-invoicing and payroll software, delivering one-click financing of outstanding invoices.

Tens of thousands of businesses have connected to the Fundbox platform to eliminate cash flow gaps by instantly clearing invoices. Fundbox is advancing thousands of invoices weekly, offering small business owners the ability to optimize their cash flow by advancing payments for unpaid invoices. This effectively eliminates the net 30, 60, 90-day problem from which so many small businesses suffer.

Hemant Taneja and Adam Valkin co-led the investment from General Catalyst and Taneja has joined the company's board.

Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

dollars  picture: Thinkstock
dollars picture: Thinkstock
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018