Once again, B2B FinTech investors are going after niche markets, with this week’s funding targets including startups operating in the wedding planning, cannabis and entertainment production arena. In total, more than $186 million was raised, with a business finance company that uses firms’ recurring revenues to widen access to capital leading the pack.
Rock Paper Coin
Operating in a niche market, Rock Paper Coin connects businesses and professionals in the wedding and event planning space with solutions to digitize their B2B operations. Offering contract, invoice and payment tools, the company streamlines workflows between event planners, suppliers and their end clients. Reports in GeekWire revealed the company has just raised $1.6 million for its technology, in a round led by XYZ Venture Capital, with Cascade Seed Fund, Ascend.VC, Ashe Partners, Momentum Investments and Stormlight Holdings’ Jack Silverstein also participating. The investment will be key to growth for the firm, which said that new user sign-ups are on the rise after a wedding industry slowdown related to the pandemic.
Based in Mexico, Clara offers a business spend management solution for Latin American companies, linking a corporate card product to transaction monitoring and analytics technologies. The company recently revealed $3.5 million in pre-seed funding to fuel its launch, with General Catalyst leading the round. Additional backers included Picus Capital, Canary Ventures, SV Angel, GFC, SOMA Capital, Liquid2 and Adapt Ventures, as well as a string of angel investors and entrepreneurs. Looking to take advantage of ongoing enterprise digitization, Clara is looking to enable businesses to embrace electronic payments to help them spend more strategically.
Digital payments platform AeroPay, which targets cannabis business customers with bank transfer payment capabilities, has announced the closure of a new funding round that totaled more than $5 million, though the exact amount raised was not disclosed in a press release. Chicago Ventures led the investment, reports said, with Continental Investors, former Google executives, veterans from the cannabis market and other executives also participating. AeroPay plans to use the funding to grow its team and continue strengthening its position in the legal cannabis market while introducing new features of its solution.
Business bookkeeping technology startup Zeni recently revealed that it raised $13.5 million in Series A funding, allowing the firm to debut its artificial intelligence (AI)-powered “financial concierge” for startups. The investment was provided by Saama Capital, while Amit Singhal, Sierra Ventures, SVB Financial Group, Liquid 2 Ventures, Firebolt Ventures, Dragon Capital and Twin Ventures, as well as angel investors, also participated. The company, which officially launched in January, did not disclose how it plans to use the funding.
Based in Estonia, Scoro offers a work management software solution to businesses that includes a range of features and functionality, from time and project management to finance and reporting. Investors have just placed $16 million with the company, with Kennet Partners leading the Series B round. Columbia Lake Partners and existing backers Inventure, Livonia Partners and Tera Ventures also participated, EnterpriseTimes reported. Scoro plans to use the funding to expand operations in the U.S. market, with reports noting that the company is likely to invest in sales and marketing efforts.
Small business accounting automation startup Autobooks recently secured $25 million in funding provided by MissionOG, Renaissance Venture Capital, Detroit Venture Partners and Draper Triangle, alongside Toronto-Dominion Bank. The Series B investment will be used for scaling and product innovation, the company said. Autobooks offers integrated payments and bookkeeping, connecting into businesses’ bank accounts and allowing firms to send invoices and accept payments from within their existing banks’ online and mobile portals.
Another B2B FinTech operating in a niche market is Wrapbook. The Canadian company announced $27 million for its payroll technology designed for the entertainment industry and its participants, like media production companies. Andreessen Horowitz led the Series A round, while other prominent players in the entertainment industry also participated. The funds will go toward further building out its product and accelerating the growth of its own team, reports in BetaKit said.
B2B eCommerce startup NuORDER has raised $45 million from Brighton Park Capital and Imaginary Ventures, the company said in a recent press release. NuORDER said it will use the funding to accelerate growth and expand across various B2B verticals as it helps to digitize the B2B commerce and B2B payments space, enabling fashion brands and retailers to match with each other, trade and transact.
Designed for businesses with a recurring billing model, Pipe connects companies to capital based on predictable, incoming payments. The company recently secured $50 million for the technology, with backers at Raptor Group, Siemens Next47, Shopify, Slack, Hubspot, Okta, Chamath Palihapitiya, Marc Benioff, Michael Dell’s MSD Capital, Republic, Alexis Ohanian and Joe Lonsdale providing the equity funding. Pipe said in its announcement that it will use the funds to expand operations globally and strengthen investor partnerships.