Anchor Secures $ 15 Million Seed Funding to Expand B2B Standalone Invoicing Solution – TechCrunch

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Businesses often spend immeasurable time chasing late payments, distracting them from their core business and causing cash flow problems.

Most of the time wasted and other challenges in collecting payments stem from the reliance on manual billing cycles and processes, which are laborious, time-consuming, and prone to errors and fraud. These are the gaps that Anchor, an American start-up with a research and development center in Israel, is seeking to bridge the gap.

Launched this year, the startup wants to solve billing, collection, and payment issues by automating billing and remittance tasks, saving businesses the precious time spent enticing customers to settle payments. The startup’s cloud-based system automates end-to-end billing and payment processes for service providers, a process that also eliminates the problem of late payments.

Anchor announced today that she now plans to accelerate her growth by expanding her team, partnering with more clients and launching a marketing campaign after securing $ 15 million in seed funding.

“Today marks the start of the next payments revolution, rendering existing B2B payment processes obsolete and redefining what invoicing, receipts and payments should look like in the modern world. It was important for us to develop a solution that fuels trust in supplier / customer relationships and puts an end to invoice fraud and human errors, ”said Rom Lakritz, co-founder and CEO of Anchor.

“In doing so, we allow payments to flow autonomously between service providers and businesses of all sizes. Within a few years, we aim for Anchor to become a fundamental part and the gold standard of how companies do business, ”said Lakritz.

Anchor is an independent American billing startup with a research and development center in Israel. Image credits: Anchor

The tour de table was co-led by Rapyd Ventures, the new venture capital arm of Rapyd; Entrée Capital, a venture capital firm that has invested in several companies, including Monday.com and Riskified; and Tal Ventures, an Israel-based VC with a portfolio of over 30 companies, including Rapyd.

“We knew immediately that Anchor was a company we wanted to invest in,” said Rapyd CEO Arik Shtilman. “She’s taking the pulse of the future of payments and has built a modern framework for B2B payments and invoicing, ready to become necessary for every business. “

Anchor’s platform connects businesses and their customers through a ‘live online agreement’ while its self-executing end-to-end billing and payment solution covers supplier and customer agreements while managing the stages of invoicing, payment and reconciliation.

The startup’s system allows it to integrate with customer payment information and service provider technologies, so that once the service is rendered or when the invoice is due, invoices are automatically completed and sent in accordance with contracts.

“The B2B payments space is very fragmented due to the fact that each vertical requires a certain level of specialization,” said Avi Eyal, co-founder and managing partner of Entry Capital.

“Anchor has found a unique opportunity and we believe it will become a key player in the industry by deploying its solutions to thousands of service-oriented companies,” Eyal said.

Cash flow issues are the biggest obstacles to growth, especially for small and medium-sized businesses around the world. However, late payments are the main reason these small businesses, which are the backbone of most economies, face cash flow issues. In the United States, small businesses Account for 44% of economic activity.

A investigation by Melio and YouGov shows that most businesses in the US experience late payments, with 25% of businesses surveyed saying they are forced to wait up to 30 days after the payment is due, which makes it difficult for them to keep their businesses open.

But these challenges can be eliminated with technology.

“The challenges of invoicing and collections, which make paying a supplier a cumbersome process, stem from the human element,” he said.

“If people could trust invoices, which they receive from service providers just as they trust machine-generated invoices from their Spotify and Amazon accounts, billing and payments would no longer be a painful process, and money would flow easily in a market estimated at over $ 120 trillion a year.

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