Fundbox, a San Francisco, CA-based B2B payment and credit network, raised $20m in equity funding.
Backers in the round, which brings the total capital raised in their Series C round from September 2019 to almost $200m, included MUFG Innovation Partners, the corporate venture capital arm of Mitsubishi UFJ Financial Group.
For now, he said, Fundbox’s data indicates that businesses on its platform have more cash in their proverbial coffers.
Shinar said that the B2B space is one where there is generally less tech-driven innovation when it comes to underwriting the capital and operating needs of Fundbox’s B2B firms spanning engineering, manufacturing and eCommerce.
There’s a growing awareness, he said, of how technology and platforms can, through a B2B payment and credit network such as that offered by Fundbox, improve the operations of a $21 trillion ecosystem with net terms and payment plans for approved SMBs.
In fact, Fundbox said with Tuesday’s announcement, despite a modest increase in losses seen early in the pandemic, key portfolio health indicators are now back at, or better than, pre-crisis levels.
Shinar said that Fundbox had started to anticipate a recession a few months ago (and credit models adjusted for that), although not at the levels in which we find ourselves today. In addition, Fundbox’s loans are relatively short in terms of duration, which affords the company some capital flexibility.
Fundbox has received numerous awards for Fintech innovation including the prestigious Forbes Fintech 50, Forbes Billion Dollar Startup To Watch, Fintech Breakthrough Awards for Best B2B Payments Platform and, the Atlas Award for Best Israeli Startup, among others. Since the company’s founding in 2013, Fundbox has raised, including this most recent round, $300 million from a blue-chip group of investors led by Khosla Ventures, General Catalyst, Spark Growth Capital and Jeff Bezos, and is currently experiencing incredible growth momentum.