Israeli start-up Fundbox raises $326m. for hi-tech credit platform

Fundbox employs approximately 250 workers at its Israeli development center and San Francisco and Dallas offices.

By EYTAN HALON
Fundbox CEO and co-founder Eyal Shinar (photo credit: ASHLEY BATZ)
Fundbox CEO and co-founder Eyal Shinar
(photo credit: ASHLEY BATZ)
Israeli fintech start-up Fundbox has raised $176 million in a Series C funding round and secured a $150 million credit facility to expand its business-to-business (B2B) payment and credit network service, the company announced Monday.
Fundbox said the investments totaling $326m. will enable more companies to use its machine learning and big data-driven online lending platform, boosting the start-up’s stated goal of “democratizing access to credit and credit services.”
Co-founded by Israeli entrepreneurs Eyal Shinar, Tomer Michaeli and Yuval Ariav in 2012, the San Francisco-headquartered firm aims to eliminate cash flow unpredictability by quickly providing short-term cash loans and credit for small and medium-sized businesses through its platform.
Fundbox employs approximately 250 workers at its Israeli development center and San Francisco and Dallas offices.
The Series C round was oversubscribed, the company said, and secured backing from a long list of major institutional investors, including Allianz X, Cathay Innovation, Arbor Ventures and Hamilton Lane. Existing investors also participated in the round, including Khosla Ventures, General Catalyst and Spark Capital Growth.
“The status quo for B2B transactions is uncertain cash flow and antiquated payment systems, which stifles business growth,” Shinar said. “The remedy to this uncertainty is the ability to facilitate quick risk decisions, faster payments and more flexible terms, so our customers have greater predictability related to their revenue and cash flow. This new investment round validates the market opportunity and that our team is on the right path, as we continue to focus on transforming B2B commerce for the better.”
Fundbox has recruited about 100 employees over the last year, and now plans to hire a further 80 employees to expand its development and data departments.
According to a recent study carried out by the company and PYMNTS.com, an unprecedented $3.1 trillion is currently owed to US firms. The out-of-reach pool of capital, a so-called “Net Terms Economy,” can prevent important business opportunities.
“Fundbox is transforming the entire B2B landscape by freeing up trillions of dollars stuck within the Net Terms Economy,” said Arbor Ventures founder and manager partner Melissa C. Guzy. “In order for B2B commerce to meet the needs of a 21st century economy, transactions must happen in real time. The team at Fundbox has a very clear vision of the future of B2B commerce, which is why this is a team we chose to back.”