All of a sudden, venture capitalists seem to love invoice finance startups. Last week, in our B2B Investment Tracker, we uncovered several deals in which investors backed invoice finance companies.
The first was Kickfurther, which links businesses to invoice and inventory financing; renowned venture capitalist Bill Tai provided undisclosed funding for that company. KredX also secured investment — to the tune of $750,000 — for its invoice financing solution.
The space’s hot streak continues, this time with U.K.-based Platform Black. The company revealed on Wednesday (April 20) a $7.2 million investment from parent company GLI Finance, a move the firm said will help propel growth.
Platform Black has been in the industry for a while since launching in 2012. Since its inception, the platform has landed more than $178 million worth of invoice financing with SMEs in the U.K., the company said.
It has also reported a zero default rate for the fiscal year ended March 2016.
In a statement, Platform Black Managing Director Caroline Langron called the funding a “milestone” that will help continue the company’s growth trajectory.
“GLI Finance’s continued support will help us to drive the business forward with increased investment in the platform itself and improving our users’ experience,” the executive said. “We’ve bolstered reporting functionalities to deliver funders with an overview of average return rates and real-time default data and will continue to make enhancements to the platform which deliver real value.”
The U.K. has seen growth in its invoice financing industry, with a new player entering the market earlier this year. In January, Investly announced a more than $650,000 investment from venture capitalists as it expanded from its home market of Estonia into the U.K.