It was a short week in the US, but venture capital, private equity and seed capital investors continued to be long in the B2B payments space. PYMNTS summarizes recent funding events in the sector and links them to trends in several key sectors of the economy.
Healthcare accounts for nearly 20% of GDP and lags behind in B2B payment automation. Thus, the sector continues to attract disruptive startups.
Virtual primary care has become extremely popular during the pandemic. Although this trend has lost momentum, the modality has persisted during the recovery and is still attracting capital.
For example, virtual primary care startup 98point6 raised $20 million in a funding round.
Read more: Telehealth 98point6 obtains $20 million and signs the first technology license agreement
The funding was backed by existing investors, L Catterton’s Growth Fund and Activant Capital.
Based in Seattle and co-founded in 2015 by CEO and Chairman Jeff Greenstein, Robbie Cape and Gordon Cohen, 98point6 strives to pioneer an innovative approach to primary care by combining cutting-edge technology with the expertise of physicians certified.
Billing and payments
PYMNTS reported that Accounts Receivable (AR) automation could play a vital role in reducing late payments, minimizing AR errors, and reducing days of unpaid sales (DSO).
Billing and payment automation is a major trend that is attracting capital.
See also: Deep Dive: Augmented Reality Automation and Overcoming Challenges That Can Prevent Successful Implementation
For example, B2B billing and payment platform Chargezoom raised $10 million in Series A funding to continue expanding its products and doubling the size of its staff by the end of the year.
Read more: Chargezoom raises $10 million to develop its AR automation solution
“We are grateful to work with investors who share our vision of redefining B2B payments,” said Chargezoom CEO Matt Dubois, “We plan to double down on customer-focused development efforts, building tools whose Modern businesses need to reduce payment friction and accelerate their growth.”
Chargezoom integrates with popular accounting applications such as QuickBooks, FreshBooks, and Xero, and provides tools that allow businesses to collect payments faster with full compliance with Generally Accepted Accounting Principles (GAAP) and without the need for manual accounting tasks , according to the press release.
Read more: Chargezoom billing platform offers FreshBooks integration
The company has partnered with Fortune 500 payment service providers and most of the top 20 merchant acquirers in the United States, according to the release, powering transactions directly and through those partners’ white-label solutions.
Eezee, a Singaporean sourcing startup, has raised $7.5m in a Series A round, which will be used to grow its team and develop new B2B e-sourcing product features.
The Eezee digital sourcing platform allows businesses to purchase and source products such as office stationery, safety gear, and industrial supplies. Streamlining the procurement process was touted by the company as a way for companies to save time and money.
Read more: B2B Sourcing Platform Eezee Raises $7.5M in Series A
The funding round was led by Ayala Corporate Technology Innovation Venture Fund (ACTIVE Fund), a leading venture capital firm, the report said. There was also participation from previous investors Insignia Ventures, Wavemaker Partners, January Capital, HH Investments and several business angels.
Financial automation platform Mesh Payments has raised $60 million in new funding and will use it to expand its go-to-market (GTM) efforts and continue product innovation.
Read more: Mesh Payments Raises $60M to Expand Finance Automation Platform
The Mesh platform helps finance teams automate, control and optimize their business spend. It integrates with NetSuite to reduce the need for manual data entry and allows numberless physical Visa cards to sync with virtual cards to give finance teams more flexibility and control.
“Investor and customer confidence in Mesh, even in a turbulent market, reinforces that our finance automation platform is what companies want to help them navigate a cost-cutting environment,” said said Oded Zehavi, co-founder and CEO of Mesh Payments.
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