Fundbox Secures $17.5M to Cover Invoices for Small Businesses.


Fundbox Secures $17.5M to Cover Invoices for Small Businesses.

Creators behind the data- driven risk engine, Fundbox, have recently raised $17.5 million in funding led by Khosla Venture to fill in the void left by banks and credit companies, while fixing the small business economy using data science.

Khosla Ventures joined in this funding round along with investors that includes,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 several other distinguished investors.

This investment will be used to scale the data operations and product, marketing growth outreach efforts, expanding the Fundbox San Francisco headquarters, and hiring additional employees throughout the Bay Area..

“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,” said Fundbox Founder and CEO Eyal Shinar. “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.”


Fundbox processes tens of thousand of invoices daily, offering small business owners the capability to fix their cash flow by advancing payments for unpaid invoices. This effectively terminates the new plus 20, 60, 90-day problem from which many small time business tend to suffer from, a serious problem that can inhibit growth. The difference between Funbox and traditional credit companies or alternative factoring companies, it keeps customer control at the forefront of its product with an emphasis on simpler user experience, clean design and total transparency. Unlike its other competitors Fundbox rewards it customers who receive funds and repay them early, with refunds for early repayment and lower fees the more they use there product.


To make use of Fundbox, a small business owner or bookkeeper must imply connect with a single click to their account and bookkeeping application, which includes Quickbooks, Xero, or Freshbooks, on their site The Fundbox risk engine assess the customers network and invoices for risk automatically and instantly. The user will then be able to view all outstanding invoices through their Fundbox account and choose which invoice to clear. Fundbox finishes the underwriting by tapping into numerous sources of data, which includes the users own financial health, the demographics of their customers and even the season of natures for some specific business. Money for funded invoices will be transferred to the user’s bank account during the next business day.

“Every small business wishes for convenient access to capital at a fair price, but for most, that is just wishful thinking,” said David Weiden, Partner at Khosla Ventures. “Fundbox leverages newly available cloud services and deep data science to deliver financial services that simply were not possible before, and that’s the kind of disruption that can really affect an industry and build a great company.”

The Fundbox engine eliminates human errors and bias from the risk assessment process. Fundbox leverages cutting-edge data science, behavioral analysis and finance theory to automatically analyze the users business and voices not only from a financial prospective, but from a behavioral and psychological one as well. Due to these results, and in stark contrast to standard banks, factoring or credit process, no amount of funding will ever be too small, as the Fundbox assessment cost are virtually nil, and the business owner pays only for the funds they have actually been using.


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