B2B Payments

US B2B Startups Dominate $337 Million Worth Of Funding

Combined, more than $337 million in funding will fuel growth for an array of B2B startups that revealed their latest funding rounds this week. U.S.-based startups dominated, with investors focusing on cybersecurity solutions and on startups that aim to streamline back-office functions. PYMNTS breaks down the latest deals below.

 

Cybersecurity

PreVeil

Boston-based PreVeil did not disclose how much it raised in its Series A funding round, but it did note that Spark Capital provided the funding to support the company’s email and file security solution. PreVeil provides corporates with end-to-end encryption of their messaging and documents while nixing the need for passwords, enabling only business customers to access protected files. The company said it will use the funding to focus on growth.

SpyCloud

Texas’ SpyCloud delivers protection against account takeover for its corporate clients. A $5 million Series A funding round from Silverton Partners and March Capital Partners will help the company focus on product development, conduct broader security research and expand its asset database and team. SpyCloud identifies exposed employee and customer accounts to safeguard them before any malicious activity can occur.

Kenna Security

California’s Kenna Security announced $25 million in Series C funding this week for its predictive cyber-risk solution. The company saw Bessemer Venture Partners lead the investment, while US Venture Partners, Costonoa Ventures, PeakSpan Capital, Hyde Park Angels and OurCrowd also participated, according to reports. Kenna said it plans to use the funds to expand its team, focus on sales and continue innovation efforts. Its platform provides proprietary cyber-risk analysis technology to corporate customers.

ZP Group

An undisclosed amount of Series C funding will help ZP Group, based in Virginia, focus on strategic investments to grow its cybersecurity offering. The company is also looking to complete the development of its Software-as-a-Service solution and expand geographically, reports said. ZP Group incorporates three units: a government cybersecurity contractor, a human capital and staffing service and a security advisory firm. Chertoff Capital made a “significant” equity investment in the round, the company said.

 

Back-Office

ServiceTitan

Focussing on home-service businesses like residential plumbing and electrical companies, ServiceTitan offers workflow and field service management solutions. Investors backed the company’s offering with $62 million in Series C funding led by Battery Ventures, while Bessemer Venture Partners and ICONIQ Capital also participated in the funding for the California-based company. ServiceTitan said it will use the funds to introduce new features to its solution, enhance customer support, grow into new market segments and land more deals with wholesalers and other collaborators.

Pipefy

A $16 million Series A funding round will help this California startup scale up and expand its teams, which operate in Brazil and San Francisco. The company provides a B2B service to help the enterprise deploy various back-office processes without IT support by using its cloud platform. The solution facilitates the integration of various back-office functions, including finance, marketing and Human Resources (HR). OpenView and Trinity Ventures led the funding, while existing backers Redpoint, eventures, Valor Capital, 500 Startups, Founders Fund and others also participated.

Kloudless

While Pipefy facilitates back-office tool deployment with the cloud, Kloudless offers API solutions to enable the enterprise to loop into an array of solutions, including Salesforce, G Suite and Dropbox. The company, also based in California, landed $6 million in Series A funding this week led by Aspect Ventures. Bow Capital, Alibaba Taiwan Entrepreneurs Fund, Heavybit and Ajay Shah also participated. The investment will be used to expand its API platform as well as its connector ecosystem, while Kloudless also plans to roll out new solutions to automate the integration process. The firm is also preparing to open its second office in Taiwan.

 

B2B Payments

CardUp

Singapore’s CardUp announced nearly $1.7 million in funding this week led by Sequoia India and SeedPlus. The company offers a cash flow management platform for small and medium-sized enterprises, as well as a payment platform to enable businesses to pay rent and taxes, payroll and more with a credit card, regardless if the recipient accepts cards. The firm said it will use the funding to expand its platform across Singapore.

xtraCHEF

Targeting the hospitality industry, xtraCHEF recently announced $3 million in funding provided by Laconia Capital Group, Connectivity Ventures, The Howard Sukonick Investment Group and Ben Franklin Technology Partners. The company, based in New York, provides an accounts payable and cost management solution for members of the hospitality sector, with its solutions leveraging machine learning technology to analyze invoice data for smarter purchasing and supplier management decisions.

 

HR

Employment Hero

With $8 million in Series B funding, Employment Hero plans to focus on expanding its leadership team. The firm offers a suite of HR solutions, including payroll, employee benefits, scheduling, financial services and performance management to small business clients. Seek led the investment, which also saw OneVentures, AMP New Ventures and AirTree Ventures participate. Employment Hero said it also plans to roll out additional features and products following the funding.

 

Business Intelligence

Grow.com

Offering a reporting and analytics dashboard designed for small- and medium-sized businesses (SMBs), Grow.com announced $16 million in new funding from HubSpot, along with institutional investors. The company offers business intelligence solutions to SMBs to support their growth and automate data analysis, which aims to help those customers use data to drive marketing and sales efforts.

Remesh

Remesh, based in New York, deploys artificial intelligence to enhance corporates’ research efforts. The company landed $10 million in Series A funding, announced this week, led by General Catayst, while Seed Round investor LionBird Ventures also participated. The company provides an interactive platform through which businesses can collect research and communicate with stakeholders. The company will use the funds to continue its focus on accelerating the time it takes for customers to gain actionable insights from their research.

 

M&A

Midaxo

A $16 million Series B funding round will fuel development of Mixado’s solution, which helps companies manage merger and acquisitions transactions and processes. The firm plans to use the investment to integrate artificial intelligence into its service and to grow geographically. Indinvest Partners led the funding, while existing institutional investors Tesi and EOC Capital participated as well, according to reports.

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