General Catalyst Leads Fundbox Series B Financing
Fundbox 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.
Fundbox’s growth 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.
“This investment provides Fundbox with greater capacity and resources to bring data science backed financing solutions to small business owners in the U.S.,” said Eyal Shinar, CEO, Fundbox. “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 U.S. 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 Hemant has joined the company’s board of directors. General Catalyst has a deep focus on investing in technology companies that empower small businesses including Stripe, ZenPayroll, and Bigcommerce.
Taneja commented, “Fundbox provides an incredibly easy and affordable service for small businesses to thrive and solve cash flow challenges. We are thrilled to join the Fundbox team to pursue this important mission.”
Fundbox leverages data analytics to accelerate cash-flow and clear invoices for small business.