21 February 2017
Visit EBAday.com

Khosla leads all-star investment in small business finance start-up Fundbox

10 April 2014  |  5477 views  |  0 cash

Fundbox, a San Francisco-based start-up that helps business owners fix their cash flow by transferring the amount of outstanding invoices to their bank accounts, has secured a $17.5 million funding round led by Khosla Ventures and featuring an all-star team of private investors, including former Citigroup chief Vikram Pandit, ex-Reuters head Tom Glocer, ISE chairman David Krell, and Jay Mandelbaum, one-time head of strategy and e-commerce at JPMorgan Chase.

Focused initially on allowing small businesses to immediately clear outstanding invoices and improve cash flow, the two-year old company has ambitions to extend its data analytics and risk engine into other part of the supply chain.

Fundbox founder and CEO Eyal Shinar, says: "Our proprietary engine can dramatically disrupt and modernise entire industries built around analysing data. We are starting with small business credit because this is where we can have a significant and immediate positive impact, but the future is boundless."

Operating in stealth mode for the past two years, the company already processes tens of thousands of invoices daily, offering small business owners the ability to fix their cash flow by advancing payments for unpaid invoices.

The Fundbox risk engine taps into numerous data signals - including the user's financial health, the demographics of their customers, and even the seasonal nature of some specific businesses - to assess customers and invoices for risk automatically and instantly, allowing small businesses to choose which invoices to clear with a single click.

Shinar says the new funding will be used to scale the data operations and product, increase marketing outreach efforts, expand the Fundbox San Francisco headquarters, and make additional strategic hires in the Bay Area.

"Every small business wishes for convenient access to capital at a fair price, but for most, that is just wishful thinking," says David Weiden, partner at Khosla Ventures. "Fundbox leverages newly available cloud services and deep data science to deliver financial services that simply were not possible before, and that's the kind of disruption that can really affect an industry and build a great company."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Tungsten seeks approval for bank buy-out

Tungsten seeks approval for bank buy-out

25 March 2014  |  4136 views  |  0 comments | 1 tweets
Bill.com raises $38m

Bill.com raises $38m

12 November 2013  |  3182 views  |  0 comments | 3 tweets | 3 linkedin
Tungsten ready to shake up supply chain financing

Tungsten ready to shake up supply chain financing

16 October 2013  |  4370 views  |  0 comments | 3 tweets
Supply chain finance industry set for disruption as Tungsten lines up takeover targets

Supply chain finance industry set for disruption as Tungsten lines up takeover targets

04 September 2013  |  10356 views  |  2 comments | 4 tweets | 1 linkedin
Transaction banks work to define common standards for supply chain financing

Transaction banks work to define common standards for supply chain financing

05 June 2013  |  12688 views  |  2 comments | 11 tweets | 6 linkedin
Supply chain finance becoming a 'must have' accessory for transaction banks

Supply chain finance becoming a 'must have' accessory for transaction banks

29 May 2013  |  9652 views  |  0 comments | 14 tweets | 6 linkedin
PayPal makes e-invoicing play

PayPal makes e-invoicing play

15 July 2011  |  9208 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit capgemini.com

Top topics

Most viewed Most shared
IBM and Visa join forces to turn billions of connected devices into points of saleIBM and Visa join forces to turn billions...
16963 views 11 comments | 52 tweets | 86 linkedin
Nesta launches £5 million Open API challengeNesta launches £5 million Open API ch...
10312 views comments | 21 tweets | 19 linkedin
Jaguar embeds payments into digital dashboardJaguar embeds payments into digital dashbo...
10201 views comments | 49 tweets | 57 linkedin
The fintech effect: Banks buy in to benefits of boosting financial well-beingThe fintech effect: Banks buy in to benefi...
9229 views comments | 17 tweets | 12 linkedin
Kevin the bot uses blockchain to offer insurance for P2P transactionsKevin the bot uses blockchain to offer ins...
8233 views comments | 17 tweets | 13 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job