B2B startups haven’t seen an investment week this busy in some time. Funders had a range of startup targets in mind, but blockchain and small business banking were the big winners this time, though four funding rounds for blockchain companies couldn’t compete with the single largest funding round of the week, which landed at alternative banking startup N26. Still, with a combined $106 million raised, blockchain startups didn’t have a bad week either. Take a look at how more than $384 million in investments landed across the B2B tech landscape below.
Blockchain startup aXpire, which develops corporate spend management solutions, announced it raised $20 million as it looks to expand its product development into new markets beyond finance, including food and beverage, travel and leisure and transportation. The company deploys a Software-as-a-Service business model for its blockchain apps and said the funds will be used to enter new industries as well as explore the use of blockchain management. While aXpire highlighted the speed with which it raised funds (89 hours), it did not disclose who provided the funding.
A $65 million fundraise will help blockchain startup Plug — also known as PL^G — scale its platform, which aims to develop blockchain apps that operate in a broader, interconnected network of blockchain systems. The company is a collaboration between Qadre, Centrality and SingularDTV. Reports in City A.M. said Plug raised the funds via a token generating event (TGE), similar to an initial coin offering but with stricter anti-money laundering and Know Your Customer checks, the publication explained. In addition to the fundraise, Plug also announced a partnership with Wanda Group, KiwiBank and Cryptopia.
Created in the media lab of the Massachusetts Institute of Technology, Eximchain operates a blockchain platform to facilitate supply chain financing via smart contracts and its own token system. The company raised $20 million, reports this week said, with China-based cryptocurrency hedge fund FBG Capital leading the way. INBlockchain and Kenetic Capital also participated, according to reports. The company is planning a token airdrop that will offer 1.5 million EXC tokens, which investors can convert to native tokens on the firm’s platform when it begins operations.
While announcing $1 million in seed funding, Finhaven said it is also rolling out a blockchain-based securities law compliance solution. The Canadian company said this week that Korea’s Medici Investments provided the investment, which preceded the rollout of its equity and debt issuance platform that creates tokenized securities. Its service ensures regulatory compliance of creation, sale and future resale of security tokens, enabling companies to use a token sale to raise capital. Reports said Finhaven is currently exploring the creation of a blockchain-based securities exchange.
Aldrich Capital Partners announced a $26 million equity investment in accounts payable company Paymerang. The investment will buy out existing company investors and help Paymerang grow in its home base of Virginia with new jobs and expanded operations, the company said. Paymerang focuses on electronic supplier payment services and aims to reduce the amount of paperwork and manual processes in the accounts payable department, particularly when it involves the procure-to-pay process.
India- and U.S.-based Chargebee provides businesses with a way to manage subscriptions and recurring billing, providing both accounts payable solutions like recurring payments, as well as accounts receivable services like invoicing. The Software-as-a-Service startup announced $18 million in Series C funding this week led by Insight Venture Partners, while Accel Partners and Tiger Global Management also participated. The funds will be used to focus on product research and development, sales, marketing and expansion into new markets, reports said.
With $53 million in Series D funding, Sift Science said it will focus on international growth of its fraud detection and prevention solution. The company secured investment from Stripes Group, Union Square Ventures, Insight Venture Partners and Spark Capital, reports in VentureBeat said this week. The company uses Big Data and machine learning to detect payment fraud, fake accounts, account takeover and other types of financial fraud.
Australia’s Ansarada offers corporates a digital “data room” for businesses that are about to undergo a major transaction, like fundraising or a merger. The company announced $18 million in Series A funding this week, which reports said will be used to fuel expansion throughout the U.S., EU, Middle East and Africa. Ellerston Capital led the investment round, while Tempus Partners, Belay Capital and Australian Ethical Investments also participated. Ansarada also noted that all advisory fees will be donated to charity. The company’s digital rooms allow businesses to manage and track data and documentation related to major deals while ensuring proper security of that information via customized accessibility for each professional. In addition to global expansion, the startup will use the investment on sales and marketing as well as product development.
Calibrate Management and Kimera led a $2.12 million Series A funding round for U.K.-based Funding Xchange, a platform that helps small business finance providers manage data for underwriting and decision-making. The company targets both traditional financial institutions and alternative lenders with its cloud-based services, with data aggregated via Open Banking initiatives, cloud accounting platforms and other sources. With the latest funding, Funding Xchange said it will continue to focus on the development of its technology and work to incorporate data streams in real time to support small business lenders’ efficiency.
With a focus on B2B Software-as-a-Service companies, CustomerSuccessBox provides its corporate clients with customer management software. The company announced $1 million in pre-Series A funding this week, with pi Ventures leading the round. Axilor Ventures also participated, reports said.
SMB Financial Services
Undoubtedly the largest funding round of the week, N26 announced $160 million in Series C investment. Reports in TechCrunch said Tencent and Allianz led the investment, while existing backers also participated. N26 operates as a challenger bank with a mobile-first service for consumers and small businesses. The firm first began without a banking license in Germany, but since securing regulatory approval, the company is operational across the European Union. The company now plans to explore expansion into the U.K. and U.S., reports said. The funding follows the introduction of N26’s freelancer bank account service last year.