Fundbox, a San Francisco, CA-based creator of a data-driven risk engine to accelerate cash flow and clear invoices for small business, secured $17.5m in funding.
The round was led by Khosla Ventures with participation from Ron Conway’s SV Angels, Vikram Pandit, former CEO of Citigroup, Tom Glocer, former CEO of Thomson Reuters, Jay Mandelbaum, former Head of Strategy and E-commerce at JP Morgan Chase, Emil Michael, SVP of Business at Uber, Shlomo Kramer, CEO Imperva, David Krell, Chairman ISE and others.
The company intends to use the funds to scale the data operations and product, increase marketing efforts, expand the San Francisco headquarters, and make additional hires in the Bay Area.
Founded in 2012 by CEO Eyal Shinar, Fundbox provides small businesses with a platform to clear outstanding invoices and free up working capital. It leverages data analytics to give owners the ability to fix their cash flow by advancing payments for unpaid invoices. Its risk engine taps into data signals (including the user’s financial health, the demographics of their customers, and even the seasonal nature of some specific businesses) within its network to assess customers and invoices for risk automatically allowing small businesses to choose which invoices to clear.
In order to use Fundbox, small business owners or bookkeepers can connect to their accounting and bookkeeping apps, including Quickbooks, Xero, or Freshbooks, on Fundbox.com.
The Fundbox risk engine then assesses the customer’s network and invoices for risk automatically and instantly. The user can then view all outstanding invoices and choose which invoices to clear.