B2B Payments

Cybersecurity, AltFin And A Surprise Startup Prove B2B FinTech Funding Heats Up

B2B FinTech venture capitalists are finally in the full swing of summer, with one of the hottest weeks in the industry so far. More than $167 million was funneled into the industry, with the enterprise cybersecurity space taking home the gold for most money raised. But — surprise! — one startup operating in a B2B FinTech industry rarely seen on the VC roundup landed the second-largest investment round of the week. Check out who it is.

 

Accounts Receivable

PayStand

With headquarters in California, PayStand provides cash management and accounts receivable solutions to business customers using blockchain and SaaS tools. The company recently announced new venture capital, and while it didn’t disclose how much it raised, the investor is quite noteworthy. PayStand is one of two startups chosen by new venture capital fund LEAP Partners I, run by LEAP Global Partners, for its first investments. The fund aims to focus on cross-border FinTech startups run by Latinos, it said; the second startup it financed was Listo, a B2C financial services firm that similarly focuses on the underserved Latino community in the U.S.

Numberz

This India startup provides accounts receivable, cash management and invoice-to-cash solutions for small businesses and recently announced plans to raise $3 million from Sequoia Capital. Last year, Numberz landed seed funding from Kae Capital and Khosla Impact, but unnamed sources told reporters that it hopes to land an additional $3 million, though the company didn’t confirm the news and sources did not say when the funding might occur.

 

Enterprise Security

Darktrace

Cybersecurity is a hot ticket among venture capitalists these days, to say the least. The latest to land funding is U.K.-based Darktrace, a firm that deploys machine learning and artificial intelligence to detect and mitigate cyberattacks on the enterprise. The company said this week it raised $75 million, led by Insight Venture Partners; existing backers Summit Partners, KKR and TenEleven Ventures also participated, according to reports. The Series D funding now brings Darktrace’s valuation up to $825 million, with plans to use the new funding to expand into new markets. While announcing the investment, the startup also revealed a new partnership with Hong Kong’s CITIC Telecom CPC to provide “next-generation cyber defense to businesses across Asia Pacific.”

Deep Instinct

With yet another ominous name for a cybersecurity startup, Deep Instinct landed $32 million in Series B financing this week. CNTP and other strategic investors, including NVIDIA and Coatue Management, participated in the investment, which will be used by Deep Instinct to focus on deployment in the U.S. and other global markets. The funds, the company said, will also be used to bolster existing services and replace ones that are already becoming outdated, a reflection of just how quickly cybersecurity criminals are evolving. Based in Israel, the company provides end-point protection and automates responses to possible threats, also using AI and deep learning to address cybersecurity issues.

 

Alternative Lending

iwoca

The same-day U.K. alternative SME lender iwoca announced news of a partnership with Italian bank Intesa Sanpaolo; the company also revealed a new funding round led by the FI’s FinTech VC unit Neva Finventures. While the companies did not disclose how much iwoca raised, they noted it follows last year’s Series C round of $21 million. According to Intesa Sanpaolo Chief Innovation Officer Maurizio Montagnese, the investment “is of strategic importance to us in that it strengthens the Intesa Sanpaolo Group’s position in the area of new business models, and specifically in highly innovative digital financial services.”

Innoviti Payments Solutions

In other AltFin news: While India’s Innoviti Payments Solutions is perhaps best known for its POS services, the company is planning to use the $18 million recently raised by Singapore-based SBI-FMO and Bessemer Venture Partners to focus on its trade credit platform SMElending.com, with plans to expand into providing loans to B2B businesses in addition to retailers. The company added that Catamaran Ventures also participated in the investment. In addition to focusing on financing, Innoviti said it also plans to use the funding to market its omnichannel payment platform uniPAY NEXT.

 

Logistics

Transfix

Surprisingly, one of the largest funding rounds of the week in this industry is for a New York-based logistics company, a rare site on the B2B FinTech venture capital breakdown. Transfix announced news of $42 million in Series C funding led by New Enterprise Associates. The company uses artificial intelligence and machine learning to enable companies to book freight truck shipments. The industry has recently garnered attention from FinTechs with the promise of IoT- and AI-connected vehicles that could similarly overhaul the freight industry. Canvas Ventures, Lerer Hippeau Ventures and others joined the investment round, reports said.

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