Israeli startup Fundbox raises $17.5M to expand its services to small businesses
The lending startup that also runs a data-drive risk engine gets an investment that it will use to increase marketing and grow from its San Francisco HQ
Other investors include Ron Conway’s SV Angels; former Citigroup CEO Vikram Pandit; former Thomson Reuters CEO Tom Glocer; former head of strategy and e-commerce at JP Morgan Chase Jay Mandelbaum; Uber SVP of business Emil Michael; Imperva CEO Shlomo Kramer; and ISE chairman David Krell; among others. The investment will be used to scale the data operations and product, increase marketing efforts and expand its San Francisco headquarters.
Founded in 2012 by an Israeli team, Fundbox is a data analytics tool for small businesses that promises to accelerate cash flow and clear invoices. Its risk engine taps into numerous data signals within its network to automatically assess customers and invoices for risks.
Lending for small businesses
“We’ve identified an unprecedented opportunity to bring data-driven innovation to a critically underserved and broken market, focused initially on allowing small businesses to immediately clear outstanding invoices and improve cash flow by accelerating payments,” Fundbox founder and CEO Eyal Shinar said in a statement. “However, the vision behind our company is much larger, as our proprietary engine can dramatically disrupt and modernize entire industries built around analyzing 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.”
The company processes tens of thousands of invoices daily, offering small business owners the ability to fix their cash flow by advancing payment for unpaid invoices, eliminating a problem many small businesses face when chasing customers for payment. Fundbox also rewards its customers who receive funds and repay them early with refunds and lower fees the more they use the product. Fundbox said thousands of U.S. businesses use its service.