Software software software. That’s where the money was at in the B2B world this past week as venture capitalists secured millions for Software-as-a-Service startups looking to make all aspects of the procurement process easier for buyers and suppliers. Investors pumped more than $10.5 million into the space last week for firms innovating in realms throughout the supply chain, from product shipping to consumer insight to e-invoicing.
The week’s SaaS investment kicked off on Friday (Feb. 27) with $6 million in funding for U.K.-based warehouse management firm Peoplevox led by Index Ventures. One of the VC’s partners, Dominique Vidal, described the startup as the “masters of inventory.”
“Peoplevox are bringing truly innovative SaaS technology to a vast and expanding marketplace, with demonstrable ROI for their customers.”
The firm revealed that through its more than 100 business customers it currently serves, Peoplevox helped facilitate the shipment of 1.2 million orders last December alone. The new funds, the company said, will aim to strengthen its position in the B2B and B2C e-commerce spaces and continue to upgrade what it considers an outdated warehouse management system.
In another realm of the supply chain, e-invoicing and accounting software Zervant revealed Wednesday (March 4) a $1.65 million investment led by Conor Venture Partners, which noted Finland-based Zervant’s rapidly expanding consumer base across Europe. That’s no surprise, considering the expansion of government digital procurement measures that have taken off in recent months, leading many EU nations to implement e-invoicing mandates. Zervant, reports said, will use the funds to strengthen its position within Europe and continue to focus its software services toward small businesses.
Just one day later, reports emerged that yet another SaaS startup nabbed significant funding. Geofeedia revealed $3 million in Series B funding on Thursday (March 5), spearheaded by Hyde Park Venture Partners, among others.
The company takes a unique approach to aiding businesses with consumer insight by tracking and analyzing social media content. Not just for B2B suppliers, the business also offers services for security firms and B2C marketers.
The VC acknowledged the rise of software service startups, but pinpointed Geofeedia’s unique market. “We’ve seen more than a thousand B2B SaaS companies and never have we seen a startup hit a vein like Geofeedia,” Hyde Park Venture Partners managing director Guy Turner told reporters.
Millions of dollars in B2B SaaS investment emerged this week, but VCs show no signs of easing their attention on the market. Venture capitalist SaaS Capital announced Thursday the closure of its second fund at $58 million, investments the company said “will give us the capacity to fund $75 to $100 million into approximately 25 new SaaS portfolio companies,” according to the VC’s founder and managing editor Todd Gardner. Investments will likely focus on west coast startups, he said.
While SaaS Capital made it clear last week that venture capitalists are pumping funds into the B2B software space, it was not the only market that saw investment in recent days. On Monday (March 2), peer-to-peer alternative financer FundThrough announced more than $1.75 million of investment, led by Real Ventures. The Canadian lender simultaneously launched its mobile app, allowing small- and medium-sized companies to secure capital on their smartphones.