Subscription Business Models Lead B2B Funding - pymnts.com

Subscription Business Models Lead B2B Funding - pymnts.com


Subscription Business Models Lead B2B Funding - pymnts.com

Posted: 18 Sep 2020 05:00 AM PDT

Venture capital appears to be picking back up in the B2B technology startup community. This week saw an impressive $324 million in combined funding for a range of B2B FinTechs and other solution providers, including alternative lenders looking to support small businesses as they manage working capital instability. But it was one startup, which helps other businesses launch their own subscription service offerings, that secured the largest round of the week, perhaps reflecting the rising tide of companies looking to shift business models amid market uncertainty.

Factris

Small business working capital and factoring company Factris, based in Amsterdam, announced a $5.92 million Series A investment round led by AB Ventures, while current backers Speedinvest and Optima Investments also participated. Factris announced the new funding as it works to onboard third-party factoring companies to become partners and brokers on its platform, propelling its footprint throughout Europe. The funding, in the form of equity, will help expand the company's partnership base and strengthen its position to help businesses manage cash flow amid market volatility, Factris said in a press release.

FundingXchange

U.K. alternative lending platform FundingXchange secured $10 million in fresh investment led by Downing Ventures and Gresham House Ventures, while Hambledon Capital also participated, reports in Insider Media said. FundingXchange targets small and medium-sized businesses (SMBs) with its solution to connect firms to capital. Reports did not indicate exactly how FundingXchange will use the investment.

eFileCabinet

Operating a platform that helps organizations manage their documents, eFileCabinet recently announced $11.5 million in Series C funding led by existing backers Allegis Capital and Signal Peak Ventures. Camden Partners, Allegis Nippon Life and Oquirrh Ventures, all new investors, also participated, according to a press release. The startup, based in Utah, said it plans to focus on its next phase of growth, with plans to push deeper into particular industries including the insurance, healthcare and human resources arenas.

iugu

Led by Goldman Sachs, iugu's investment round topped $22.5 million for the Brazilian company, which offers businesses an accounts receivable (AR) and invoicing technology. Reports in Contxto noted Goldman was particularly impressed by the startup's payments platform integrated into technology that can be flexible enough to meet the unique needs of B2B vendors based on how AR departments are structured.

GoExpedi

With $25 million in Series C funding, GoExpedi, which operates a supply chain and eCommerce platform for business customers, plans to expand into new markets and accelerate its development of machine learning, robotics and data analytics technologies to help elevate users' procurement operations for the industrial and energy MRO space. Investors at Top Tier Capital partners led the round, which also saw participation from Crosslink Capital, San Jose Pension Fund, CSL Ventures, Bowery Capital, Hack VC and others.

Veem

Cross-border business payments technology startup Veem secured $31 million from Truist Ventures, the new venture capital unit of Truist Financial Corporation, recent reports noted. Veem plans to wield the investment to develop a channel partner program that will help the firm expand globally, and will also invest in its product suite and functionality.

Allica Bank

In the U.K., Allica Bank, a FinTech in the process of building a small business challenger bank, raised more than $33.6 million from existing backers, according to a press release. While an impressive feat, Allica Bank doesn't want to stop there: the firm also revealed it is seeking to raise nearly $130 million in total as it expands its product and services line for SMBs. In the meantime, existing backers at Warwick Capital Partners provided the latest injection of funds, which will also go toward potential M&A activity for bank as it seeks to acquire a non-bank small business lender.

AppDirect

Coming in at the top spot in this week's roundup is AppDirect, a B2B technology company that helps other firms launch their own subscription services. The funding, totaling $185 million, comes from global institutional investor Caisse de dépôt et placement du Québec (CDPQ) as well as existing backers in the form of equity, which will fuel the company's "new phase of expansion," AppDirect President and Co-CEO Daniel Saks said in a statement. He added that while companies accelerated their digital sales strategies as a result of the pandemic, many "need assistance integrating new technologies and processes into their operations and making the work at-scale for the long-term."

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LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Best Business Credit Cards For Startups and New Businesses Of 2020 - Forbes

Posted: 05 Jun 2020 12:00 AM PDT

The American Express® Business Gold Card offers a unique and tailored approach for businesses to generate 4 points per dollar automatically on the expense categories that they spend the most during each billing cycle. As time goes by, expenses can evolve throughout the stages of the business and the American Express® Business Gold Card will automatically reward the two top categories with a lucrative 4 points per dollar.

Membership Rewards® points are valuable and well-regarded and offer exceptional value when booking travel by transferring to airline and hotel transferred partners.

Rewards: Earn 4 Membership Rewards® points per dollar spent on the two categories that the business had the most spend each billing cycle. The categories include: airfare purchased directly from airlines, U.S. advertising purchases in select media (online, TV, radio), purchases made directly from select U.S. technology providers of computer hardware, software, and cloud solutions, U.S. gas stations, purchases at restaurants worldwide, and shipping.

Earning 4 points per dollar applies to the first $150,000 in combined two category-purchases each calendar year, then earn 1 point per dollar thereafter. A cardmember that takes maximum advantage of the 4 points per dollar rewards-earning potential would generate an impressive 600,000 points on combined purchases on those categories alone, which is worth $6,000 at minimum.

Welcome Offer: Earn 35,000 Membership Rewards® points after you spend $5,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership. Due to the impact of COVID-19, eligible card accounts that offer a welcome offer that was approved from December 1, 2019, through May 31, 2020, will receive an extension of an additional 3 months to complete the minimum spending requirement.

Annual Fee: $295 (see rates and fees)

Benefits and Drawbacks: Cardmembers can redeem points to book flights through American Express Travel using Membership Rewards® Pay with Points and get 25% of those points back (up to 250,000 points back in a calendar year). Points can also be transferred to American Express' airline and hotel transfer partners.

However, the $295 annual fee is high compared to other business credit cards, and the 4 points per dollar two-category spend is capped at $150,000 annually. Since this is a charge card, it does not offer the opportunity to carry a balance.

SWIFT, VSoft Eye Speed In Payment Rail Innovation - pymnts.com

Posted: 18 Sep 2020 05:01 AM PDT

It may have taken some time, but faster and real-time payments demand continues to grow in the corporate and B2B payments context.

This week's look at payment rail innovation is all about speed, both for legacy rails and new ones. SWIFT has revealed plans to develop new real-time rails, while VSoft is wielding traditional bank rails to facilitate its real-time payments capabilities.

PYMNTS breaks down all of the latest initiatives below.

SWIFT to Launch New Real-Time Rails

It was a big week for payments messaging solution provider SWIFT, which announced that it will be revamping its real-time payments strategy. The initiative aims to upgrade its platform to optimize interactions between financial institutions (FIs) for heightened transparency and payments predictability. SWIFT is expected to use an application programming interface (API) to streamline interactions between intermediaries.

"We are innovating the underlying infrastructure that financial institutions use to make transactions run even faster end-to-end, and at the same time further reducing costs for the community through industry-shared services in the areas of cyber, fraud and compliance," SWIFT CEO Javier Pérez-Tasso said in a statement, adding that SWIFT will also integrate data analytics to mitigate risk.

"Combining these elements, we are creating a broad platform with faster technology and smarter and better services that the industry can trust as a foundation for innovation towards their own end-clients," he added.

EVO Payments Wields Visa Rails for Merchants

With a focus on optimizing cash flow for merchant customers, EVO Payments has announced a new feature that enables businesses to access funds from card transactions in real time. The company is using Visa's Visa Direct solution, which wields Visa's card rails to push funds to debit cards. Merchants using a qualified debit card can schedule card receivables payouts and apply that cash toward inventory, bill pay and other requirements to continue operating and survive through the volatility.

"In today's challenging environment where businesses of all sizes have been impacted by the pandemic, it is more important than ever before that they have faster access to their funds, to help mitigate cash flow challenges and stay afloat," said Gaurav Gollerkeri, head of Visa Direct North America, in a statement.

VSoft Debuts Real-Time Platform

VSoft, a company that develops banking and payments technologies for FIs, has announced the debut of Bread, a real-time payments platform that allows merchants to accept real-time payments. The company noted that the solution can be applied across a broad range of payments use-cases, including B2B and business-to-consumer (B2C) transactions. VSoft wields its existing banking relationships to use traditional rails to move funds, yet without a middleman from one bank to another.

"The Bread platform will allow businesses to have access to their funds faster and, as a result, have the ability to pay employees quicker," the company said in its announcement, adding that Bread can be integrated into banks' existing business payments and service offerings.

BitPay Secures Wyre Integration

Cryptocurrency payment solution provider BitPay, which services both businesses and consumers, has revealed an integration with Wyre, a partnership that allows users to purchase cryptocurrency within the BitPay Wallet App. It's a mix of payment rails, seeing users able to use their debit card or Apple Pay to purchase Bitcoin and Ethereum; added cryptocurrency options will come at a later date BitPay said.

In a statement, Wyre Chief of Staff Liana Spano pointed to the value of new payment rails over legacy ones.

"Crypto has revolutionized the way we deal with payments domestically and internationally by allowing the swift mobility of funds in an otherwise slow and outdated legacy system," said Spano. "In the midst of a global pandemic, it's more important than ever to streamline global payouts to reach our partners in hard-hit communities as quickly as possible."

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LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

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