Invoice funding platform FundThrough has raised $24.3 million in a second round of financing. It was led by Canadian venture capital firm ScaleUP Ventures, and joined by Hedgewood, Klister Credit Corp and OnWave Ventures. With the round, the company will receive $4.3 million of equity and $20 million in debt, the proceeds of which will be used to support its expansion plans. Based in Toronto, FundThrough has developed technology to help small businesses eliminate cash flow hurdles by giving them tools to get invoices paid quickly. Its prior $2.2 million financing, announced in February 2015, was led by Real Ventures.
PRESS RELEASE
FundThrough Attracts $24.3 Million Second Round of Financing to Support Growth
Fintech Start-Up Will Leverage Funds to Help More Small Business Customers and Expand Its Team
TORONTO, ON–(Marketwired – October 11, 2016) – FundThrough, Canada’s leading invoice funding platform for small and growing businesses, secured a $24.3 million second round of financing to support its expansion plans and help even more business owners clear cash flow hurdles using their own invoices.
The second round of financing was led by ScaleUP Ventures and includes Hedgewood, Klister Credit Corp. and OnWave Ventures. FundThrough will receive $4.3 million of equity and access to an additional $20 million in loan capital as part of the transaction.
FundThrough enables business owners to eliminate the wait associated with invoice payment terms by funding outstanding invoices almost instantly. The fintech company’s technology connects to a business owners’ accounting software and bank information to automatically assign a funding limit in just a few hours — with less than two minutes of work by the business owner. Once connected, funding invoices is as easy as clicking a button and the funds arrive in the business owner’s bank account within 24 hours. By eliminating payment terms, businesses can use their hard earned money to buy more inventory, take on more jobs, pay staff and contractors and focus on growth.
“With more than 85 per cent of its customers being repeat users, FundThrough has quickly established itself as a trusted solution for small businesses that gives them easy access to the capital they need to grow,” says Kent Thexton, General Partner, ScaleUP Ventures. “FundThrough is processing millions of dollars of invoices each month — the opportunity for rapid expansion is clear.”
Business owners rely on FundThrough every day to get their invoices paid when they want, for the work they have already completed. Since it is tied to their own invoices, business owners look at this as a way to fund themselves.
“We have already funded more than $40 million of invoices from small business users so we know we have built a solution that makes their lives easier and allows them to control their cash flow,” says Steven Uster, co-founder and CEO, FundThrough. “Our investors recognize the success of our solution and now our goal is to grow our team so we can help even more business owners.”
“Small businesses make up the majority of companies in Canada, and an even greater proportion abroad, so there is a sizable opportunity to expand the FundThrough platform,” says John Phillips, CEO, Klister Credit Corp. “FundThrough recognized a need and developed the technology platform to deliver a simple solution that makes it easy for a small business owner to get funding.”
About FundThrough
FundThrough, Canada’s leading invoice funding platform, enables Canadian business owners to eliminate cash flow hurdles to growth by giving them the power and flexibility to get their invoices paid when they want with one click. With FundThrough, there are no personal guarantees, no long term contracts and no limits to how much you can fund. FundThrough funds millions in invoices each month and gives customers the ability to pick and choose which invoices to fund. Find out more at www.fundthrough.com.
CONTACT INFORMATION
For more information, please contact:
Mitch Solway
FundThrough
416-998-7940
mitch@fundthrough.com
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