Although the market isn't in great condition now, that doesn't seem to stop the Israeli ecosystem. The Israeli fintech company Viably launched out of stealth today (Tuesday) with an impressive seed round of $21 million. The Israeli company developed a financial management system for small businesses and received investment from Viola Ventures and Salesforce Ventures, who led the round (and invested in the founder's previous company). Angular Ventures and Bull City Venture Partners also participated in the round.
From a huge exit to helping small businesses
Viably was founded by Doron Gordon (CEO) who was also one of the founders of Samanage, which was sold to the American company SolarWinds in 2019 for $350 million. Gordon's new startup is developing an all-in-one platform designed for small businesses to help them manage their finances in a better way.
The system shows the business owners what their cash flow looks like, what their cash burn rate is and whether they are prepared for critical things such as paying their employees' salaries at the end of the month or whether they will have to take out a loan to do so. In addition, the platform is designed to help small businesses get credit or loans from the bank.
"The customer connects the bank accounts, credit cards and accounting system used by the business to Viably. The system reads all the data, presents it to the user, and looks for insights that make it possible to improve their financial situation. For example, it will catch bank fees or unnecessary recurring expenses, and increased expenses in different categories,” explained Gordon in a conversation with Geektime.
Viably's system also gives business owners a tool for managing cash flow and revenue, which includes the ability to manage the collection of invoices and display the credit score of the business with the banks (which is common in the U.S.), so that they understand how the financial institutions "see" them. Gordon explains that their goal is to "educate and help them understand what affects it, and how to improve." According to him, the company generates revenue by running a virtual bank as part of the system, which allows customers to do everything in one application.
The new company employs about 30 people in their development center in Yakum, Israel and headquarters in North Carolina, most of whom worked with Gordon at Samanage before it was acquired. The company's product is currently in beta and will be released to the general public in the coming weeks. It is expected to compete with similar products from the Israeli startup BlueVine.