B2B Payments

Lull Hits B2B FinTech Venture Capital Funding

A lull in venture capital funding has only a few B2B FinTechs this week securing new investment rounds.

Even so, funds continue to fill their coffers in anticipation of more investments ahead.

Just this week, RTP Global announced a a fund, with the venture capital firm planning to deploy that cash for early-stage technology companies in areas like FinTech and Software-as-a-Service (SaaS). Frontline Ventures, meanwhile, revealed an $80 million fund targeting software startups based in the U.S. and hoping to expand into Europe.

At the same time, the U.S. Securities and Exchange Commission is reportedly promoting an initiative aimed to lower barriers for startups to raise capital via crowdfunding by raising the crowdfunding limit to $5 million from $1 million, according to The Wall Street Journal. It’s an effort among officials to expand options for young businesses and broaden access to funding beyond venture capital or traditional small- to medium-sized business (SMB) loans. The plan is now open for public comment, reports said.

In the meantime, PYMNTS gathered up a shortlist of the B2B FinTechs that were able to secure new funding as backers prepare for their next wave of support.

Mailprotector

South Carolina’s Mailprotector offers customers email security and encryption technology designed for businesses, governments and nonprofits. Investors at Ballast Point Ventures led a $5 million Series A funding round for the firm, according to a press release. The money will be used to focus on product development, sales, marketing, and an expansion of its existing Managed Service Providers (MSPs) network, which connects end-users to Mailprotector’s capabilities. In addition to providing cybersecurity services, the company’s technology could prove important for businesses and governments facing a surging threat of Business Email Compromise (BEC) and other social engineering and phishing scams flowing in via their email platforms.

Chqbook.com

With $5 million in new funding, India’s Chqbook.com is looking to scale up its business as an intelligence-based platform offering SMBs a suite of banking and financial services. Reports in VCCircle said the company raised the Series A funding from Aavishkaar Capital, which has become the first institutional firm to invest in the Chqbook.com. As it scales, the startup said it also plans to further invest in its proprietary artificial intelligence (AI) capabilities and to expand its SMB customer base as it seeks to service under-banked SMBs in the country.

Airbase

With the largest U.S.-based funding round of the week, corporate spend management startup Airbase announced via press release a $23.5 million Series A extension round led by Bain Capital Ventures, while existing backers First Round Capital and BoxGroup also participated. Airbase said it will use the funding to expand its team, launch its New York City office, and further product development. The company aims to streamline and consolidate corporate spend management processes, including expense requests, invoice processing and approval, bill payment and reconciliation, with the ability to integrate into back-office accounting and finance platforms.

SMEcorner

Non-bank financial company SMEcorner, an SMB lending platform based in India, announced a $30 million funding round this week, according to the Economic Times of India, making the company the B2B venture capital winner of the week. The Series B funding, which consists of both equity and debt, was led by Paragon Partners, while existing backers Quona Capital, Accion Venture Lab, Bharat Shah and several high network individuals also participated. In a statement, SMEcorner said it will deploy the funding to expand its distribution and reach 20,000 new SMB customers over the course of the coming year.

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