Israeli-founded, US-based financial tech company FundBox announced on Tuesday that it raised $176 million in a Series C funding round and secured a $150 million credit facility.
Founded in 2013 by fintech veterans Eyal Shinar, Tomer Michaeli, and Yuval Ariav, Fundbox offers small-business owners data-driven loans to solve cash flow issues. It advances payment for thousands of unpaid invoices weekly, effectively eliminating the 30-, 60-, and 90-day problem faced by many small businesses.
It was recently named to a Forbes list of the top 50 AI companies.
With headquarters in San Francisco and a development center in Tel Aviv, the company said in a statement that it will use the new investments to “transform the B2B payments and credit experience by making transactions simple, fast and transparent so businesses will have greater cash flow predictability.”
Investors in the round included Allianz X, Healthcare of Ontario Pension Plan (HOOPP), 9Yards Capital, Cathay Innovation, and Arbor Ventures. Major existing investors also included Khosla Ventures, General Catalyst and Spark Capital Growth.
“The status quo for B2B transactions is uncertain cash flow and antiquated payment systems, which stifles business growth,” said Shinarin a statement.
“If you’re a business owner and don’t know when you’re getting paid next or whether you have the funds to complete a transaction, you lose valuable time and important business opportunities. The remedy to this uncertainty is the ability to facilitate quick risk decisions, faster payments, and more flexible terms so our customers have greater predictability related to their revenue and cash flow.”
“Fundbox is transforming the entire B2B landscape by freeing up trillions of dollars stuck within the Net Terms Economy,” said Melissa C. Guzy, Co-Founder and Manager Partner at Arbor Ventures. “In order for B2B commerce to meet the needs of a 21st Century economy, transactions must happen real-time. The team at Fundbox has a very clear vision of the future of B2B commerce which is why this is a team we chose to back.”