The Receivables Exchange, a New Orleans-based online marketplace for real-time trading of accounts receivable, has raised $7.75 million in Series B funding. Redpoint Ventures led the round, and was joined by return backer Prism Ventureworks.
The Receivables Exchange (www.receivablesXchange.com), the world’s first online marketplace for real-time trading of accounts receivable, announced today that it has closed $7.75 million in Series B financing led by Redpoint Ventures with re-investment from Prism Ventureworks. Through The Receivables Exchange’s proprietary trading platform, small and mid-sized businesses (Sellers) are able to quickly and easily monetize their accounts receivable by posting their outstanding invoices to be bid on in real-time by a global network of accredited institutional investors (Buyers).
The company will use the funding to expand its broad scale marketing and business development efforts to small and mid-sized businesses (SMBs); to continue to evolve its patent-pending trading platform; and to aggressively scale its operations and sales activities.
“Given the current environment, Redpoint Ventures’ commitment to our company is a testament to the strength of our business model and the high value that our innovation brings to the financial services marketplace,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Their deep experience and industry track record of bringing pioneering technologies such as Concur, LoopNet, MarketAxess and MySpace to the marketplace will be invaluable as we continue to scale this company. They are one of the premier venture investment firms; we couldn’t imagine a more perfectly suited partner.”
“By creating an open, efficient and competitive marketplace for receivables financing, The Receivables Exchange is transforming an $18 trillion marketplace,” said Jeff Brody, founding partner of Redpoint Ventures. “Now, for the first time, America’s millions of small and mid-sized businesses will have the ability to quickly and easily monetize their receivables to gain access to competitively priced capital. The Receivables Exchange has built what we expect to be one of the most transformational innovations for small business financing and working capital management in the past decade.”
“Small and mid-sized businesses are the engine of the U.S. economy,” said Nic Perkin, co-founder and president of The Receivables Exchange. “Yet, they remain severely disadvantaged when it comes to being able to obtain the capital they need to run their businesses. The Receivables Exchange allows thriving but under-capitalized businesses to source capital so they can get back to building their business.”
For most companies, accounts receivable represent their greatest source of working capital, with more than 60% tied up in outstanding invoices. The Receivables Exchange connects Buyers and Sellers in a real-time auction marketplace to buy and sell receivables. By selling their receivables in an open and competitive marketplace, Sellers are able to reduce their cash conversion cycles, gain access to competitively priced capital and reinvest that cash into growing their business. Buyers gain access to a new investable asset class with attractive risk-adjusted returns and the opportunity to invest in the growth of the nation’s thriving small and mid-sized businesses.
About The Receivables Exchange
The Receivables Exchange (www.receivablesXchange.com) is the world’s first online marketplace for real-time trading of accounts receivable. The Receivables Exchange is changing the landscape of small business financing by providing a new dimension in working capital management. The Exchange connects a global network of accredited institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow their businesses. Buyers get direct access to an $18 trillion new investable asset; Sellers get to access a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers. For more information, visit www.receivablesXchange.com.
About Redpoint Ventures
Redpoint Ventures teams up with exceptional entrepreneurs to help build industry-defining technology companies. Redpoint partners have many decades of experience and success in technology investing; combined with this foundation, the firm is able to leverage a thriving network of entrepreneurs, partners, and industry experts to accelerate building market-leading companies. Redpoint’s portfolio includes innovative start-ups like Fortinet, Gaia Online, HomeAway, LifeSize, Solyndra, Topspin Media and others. Redpoint partners have also backed industry leading companies such as Ask.com, Concur, Danger, Documentum, Fraud Sciences, GetThere, LoopNet, MarketAxess, MySpace, Netflix, RightMedia, and TiVo. The firm is headquartered in Menlo Park, CA with offices in Los Angeles and Shanghai, China. For more information, visit www.redpoint.com.