MineralTree, the accounts payable (AP) and payment automation solution provider for growing companies, today announced an $11.1 million Series B investment led by First Data, the global leader in payment technology and services solutions.
Existing investors .406 Ventures and Fidelity Growth Partners participated in the round that brings the company’s total funding to $22.7 million. MineralTree will use the funds to accelerate product development and further expand its direct sales organization targeting growing companies and financial accounting outsourcing (FAO) organizations.
“As a leader in payments and financial services technology - with unprecedented market insight and a network of relationships with banks and financial services organizations - First Data brings much more than capital to our relationship,” said BC Krishna, MineralTree’s president and CEO. “The solution we’ve built is a far more intuitive, affordable and secure option than other products in the market or the manual processes that too many companies are still using for accounts payable. We can deliver tremendous efficiencies to the antiquated status quo in AP, giving people an informed solution with great utility that is delightful to use and guaranteed secure.”
As part of the investment, executive vice president and head of financial services at First Data, Andrew Gelb, will be joining the Board of Directors at MineralTree.
“MineralTree has demonstrated a unique ability to modernize and automate the accounts payable environment,” said Gelb. “We look forward to working closely with this innovative team.”
According to the Association of Finance Professionals, business-to-business payments are going through an unprecedented period of change. The organization’s most recent Electronic Payments Survey found that half of all large companies still use paper checks to make B2B payments. Evidence of significant adoption from previous studies demonstrates that many large companies are looking for ways to improve and automate processes, but they are the exception. AP and payment automation within growing and mid-sized firms is virtually non-existent.
To help growing companies optimize AP and payment efficiency, MineralTree captures invoices as they arrive, routes them for approval through existing workflows and directly executes payments. As a Web-based solution that integrates seamlessly and in real time with accounting/ERP and banking systems, MineralTree provides unparalleled visibility and control of cash flow. It helps financial professionals at growing companies focus more on strategic tasks instead of chasing down approvals, printing checks, and licking envelopes. In addition, MineralTree does not use settlement accounts, so it improves security by minimizing the movement of cash, while also providing a $100,000 online annual fraud protection guarantee.