Adding to ongoing confusion and hiccups surrounding the U.S. stimulus package, some small- to medium-sized businesses (SMBs) remain unclear as to whether their ties to venture capital investors will exclude them from being able to access Paycheck Protection Program (PPP) loans.
As venture capital firms and lawmakers work out the kinks, this week's look at B2B FinTech funding finds a healthy $115.1 million in fresh funding, with open banking, small business banking, and supply chain management particular bright spots for funding.
The $7.7 million raised by payments API startup Sila will go toward accelerated growth and product development, the company revealed in a blog post. Sila offers a payments and banking API platform enabling software developers to integrate API payment processing within their own solutions, although Sila eventually is looking to enable software tools to bypass ACH, a payment rail the firm said is outdated.
Supply chain technology startup Slync.io, based in California, announced $11 million in new funding, with the Series A led by Blumberg Capital, according to a press release. Correlation Ventures and existing backers 235 Capital Partners also participated. The company operates an artificial intelligence-powered platform to manage supply chain and logistics operations, empowering businesses with real-time data. Slync.io said it will use the new funding to invest in hiring and company growth, with plans to strengthen its existing operations across six continents.
Also securing $11 million in funding is Neat, a Hong Kong-based FinTech targeting small businesses with business account services designed for companies with international operations. Its multi-currency account service is augmented by corporate expense cards and cross-border payment capabilities. Investors at Pacific Century Group led the Series A round, while Visa, MassMutual Ventures Southeast Asia, and others also participated, according to a press release. Neat said it will deploy the funding toward international expansion with a continued focus on global SMB users.
Supplier collaboration and supply chain management startup SourceDay announced $12.5 million in fresh funding, with Baird Capital leading the Series B round. The Texas-based firm also saw investment from existing backers Silverton Partners, ATX Ventures and Draper Associates. SourceDay said it will use the investment to continue helping its manufacturer, distributor, and supplier customers to mitigate supply chain risks, particularly during the current volatile market, and enable clients to prepare for a market rebound.
Recent reports in EU-Startups said U.K.-based Yapily secured more than $13 million in Series A funding led by Lakestar. The open banking startup enables connectivity between third-party platforms and banks via its API technology and said it will use the funding — which also saw participation from existing backers HV Holtzbrinck Ventures, LocalGlobe, and angel investors — to support the broader financial services ecosystem to help end-users manage market uncertainty.
With nearly $29.9 million in additional funding as an extended Series B investment round, Nordic challenger bank Lunar is aiming to power new product rollouts, including loans and credit facilities, according to a separate EU-Startups report. In addition to targeting consumers with its mobile-only banking service, Lunar also offers Lunar Business, a service focused on small businesses with integrated accounting, lending, and other B2B financial services. Investors at Seed Capital led the latest funding, while Greyhound and Socii also participated, as did Unity Technologies founder David Helgason.
Logistics startup Shippo announced $30 million in new funding as investors backed the company's services that enable business users to manage their own shipping and returns operations across sales channels. Investors at D1 Capital Partners led the Series C raise, which also saw participation from Union Square Ventures, Version One, Uncork Capital and Bessemer Venture Partners. Shippo did not offer specific details as to what it will do with the investment.