California-based startup Fundbox, which aims at streamlining the cash flow between businesses, has raised $40 million in series B round led by General Catalyst with participation from NyCa Investment Partners and help from existing backers Khosla Ventures, Shlomo Kramer and Blumberg Capital. In April 2014, the firm had secured a capital of $17.5 million in Series A round.
The company plans to use the latest influx of cash to pick up the pace. The startup leverages data analytics to accelerate cash flow and clear invoices for small businesses. It provides short-term loans so businesses can keep with expenses while they are waiting the 30, 60 or 90 days to get paid. Fundbox was built with an aim to helping small businesses grow, become independent and achieve their full potential.
It takes 20 seconds to create an account and 50 seconds for Fundbox to underwrite an invoice. Customers see the money in their account the next business day, and they are rewarded if pay back the loan before the invoice is due.
The startup claims to have surpassed 300% quarter over quarter growth in the past 18 months and is operating thousands of invoices weekly, ranging from $100 to $25,000 each.
The other players in the same space – Tradeshift and Taulia have raised a combined $200 million in venture funding to move invoices into the cloud.Category Investments