The B2B FinTech investment space has been relatively slow in recent months, but U.S. startups led the way this week with a healthy $101.5 million in venture capital — the most the industry has seen in a while. Companies across the enterprise security, SME banking and even workplace communication (think WhatsApp for the enterprise) sectors all landed funding, but nearly 80 percent of the funding went to a single company in the software-as-a-service (SaaS) arena. Find out who landed the big bucks in our breakdown.
U.S.-based Dyadic focuses its enterprise security solutions on the cryptography space, offering what it claims to be the world’s first software-defined solution that can help businesses migrate away from physical hardware to manage data security in the cloud. The company announced a $12 million Series B round this week led by Goldman Sachs Principal Strategic Investment, Citi Ventures and Innovation Endeavors. According to Dyadic, the funds will go toward marketing and sales efforts as it looks to expand across North America.
Autobooks provides online banking platforms with solutions tailored to the SME crowd, including accounting and payments. Venture capitalists at Draper Triangle led a $5.5 million Series A round to help the company in its pursuit of better small business banking; according to research from Below Research and cited by Autobooks, 70 percent of SMEs said they would use a cash flow management solution if their banks offered it. Autobooks said there is a gap in the small business banking industry that it’s looking to fill. The backing, which also saw participation from CU Solutions Group, Baird Capital, Detroit Venture Partners and Invest Michigan, will be used to expand operations, gain new bank and credit union clients, and focus on sales, distribution and marketing, the company said.
This startup targets the home services industry, providing businesses like plumbing and electrical service firms with business management software to streamline operations, manage customers and expand by offering CRM, dispatching, invoice management, analytics and other solutions to these businesses. With $80 million in new funding, ServiceTitan also scored the largest venture capital fund of the week; ICONIQ led the Series B funding round, reports this week said. The company said it will use the funds to continue to develop its platform, according to cofounder and CEO Ara Mahdessian.
VentureApp offers a mobile and online chat platform built for the enterprise, and with $4 million in fresh funding, the company said it will continue to develop itself as the WhatsApp for businesses. Fullstack Ventures, Boston Seed Capital and angel investors all participated in the round, reports said, which will be used to add new features to its chat platform and release its mobile messaging solution out of beta phase.