Fundbox is a San Francisco-based fintech that uses AI and transaction data to deliver credit, invoice funding and payments products to B2B small businesses. The company offers lines of credit (up to $150,000), instant funding against invoices and recently launched Flex Pay and membership-style offerings to create subscription revenue. Fundbox integrates with partners such as QuickBooks, FreshBooks and Synchrony and has connected with over 325,000 small businesses, transacting more than $2.5 billion in working capital since launch. It crossed $100 million in annual revenue run rate earlier this year and is now beyond that level, though it is not yet profitable as it prioritizes growth. Fundbox has a roughly 300-person team and has expanded operations (it opened a Dallas office in 2019 that is now its largest U.S. office). Looking ahead, the company plans further product expansion into payments, membership offerings and a product aimed at entrepreneurs running multiple small businesses and new businesses lacking financial history. Fundbox is a B2B payment and credit network that enables sellers of all sizes to increase average order volumes and improve close rates by offering competitive net terms and payment plans to SMB buyers. Led by CEO Eyal Shinar, the company operates from San Francisco, Dallas and Tel Aviv. The company raised $20M in equity funding in an extension to its Series C. The new $20M brings the total capital raised in the Series C round, which began in September 2019, to almost $200M. Fundbox intends to use the funds to continue to expand its business reach. Fundbox offers a revolving line of credit for small businesses that connects to customers' financial data stores (for example, QuickBooks) and can deliver credit decisions in as fast as minutes. Customers draw and repay against a flexible line of credit and pay fees only on what they use. The company emphasizes data-driven underwriting, employs a large share of data scientists, and has developed an "X-Ray" tool to explain its machine-learning underwriting. Its long-term plan is to create a Visa-like payments network and ultimately operate B2B payment rails to remove counter-party risk. Fundbox has 240 employees across San Francisco, Tel Aviv, and a recently launched Dallas office. It plans to use new capital to expand underwriting capacity and scale products. Fundbox issues loans in the exact amount of individual invoices so small businesses don’t have to wait 30–90 days for payment. The company plugs into a customer’s accounting software and assesses each invoice in real time, building a risk profile of the transaction, the business and its market. If accepted, Fundbox underwrites the invoice in about 50 seconds and deposits funds by the next business day; businesses repay over 12 weeks and pay a flat monthly transaction fee. Fundbox reports a very low, single-digits default rate and has doubled its average invoice size from around $5,000 to more than $10,000. It is currently serving more than 20,000 small businesses and has processed 15 million invoices with a cumulative value exceeding $30 billion. Fundbox sees the roughly 34 billion U.S. invoices issued each year as a large runway and aims to scale to clear a significant share of B2B invoices. Fundbox provides a cash-flow optimization platform that evaluates numerous data signals to assess customers and invoices for risk and determine which invoices to clear. The product can be embedded into a business’s workflow via accounting, e-invoicing and payroll software. Led by CEO Eyal Shinar, the company targets small businesses seeking improved working capital management. Fundbox received a new credit facility from Silicon Valley Bank and other institutions alongside its equity financing. The company plans to use the funds to accelerate expansion, drive product innovation and increase marketing to reach more small-business customers.

Total raised

$554M

Funding rounds

7

Latest round

Series D

Latest activity

Nov 2021