Category: stripe

Balance raises $25M in a Ribbit Capital-led Series A to grow its ‘consumer-like B2B checkout platform’



Balance, a payments platform aimed at B2B merchants and marketplaces, has raised $25 million in a Series A funding round led by Ribbit Capital.

Avid Ventures participated in the financing, in addition to existing backers Lightspeed Ventures, Stripe, Y Combinator Continuity Fund, SciFi VC and UpWest. Other individual investors that put money in the round include early employees and executives from Plaid, Coinbase, Square, Stripe and PayPal, such as Jaqueline Reses, formerly head of Square Capital. The financing comes just over six months after Balance announced a $5.5 million seed round.

The motivation for starting the company was simple, said CEO and co-founder Bar Geron: “We wanted to create an online B2B experience that doesn’t suck.” He and Yoni Shuster, both former PayPal employees, started the company in early 2020.

B2B payments, he said, have historically differed from B2C primarily in that they have not taken place at the moment of purchase (or at the point of sale) but rather within 30 days and with an invoice. This is not an efficient process for merchants or vendors alike, the company maintains.

Meanwhile, most businesses have avoided paying for their supply with credit cards, because cards can quickly max out, Geron said.

“The only element that keeps many merchants offline is payments,” he told TechCrunch. “It’s a process that is stuck in the flow of those marketplaces and keeping them from scaling. We got fascinated with the problem.”

Ramp and Brex draw diverging market plans with M&A strategies



Earlier today, spend management startup Ramp said it has raised a $300 million Series C that valued it $3.9 billion. It also said it was acquiring Buyer, a “negotiation-as-a-service” platform that it believes will help customers save money on purchases and SaaS products.

The round and deal were announced just a week after competitor Brex shared news of its own acquisition — the $50 million purchase of Israeli fintech startup Weav. That deal was made after Brex’s founders invested in Weav, which offers a “universal API for commerce platforms”.

From a high level, all of the recent deal-making in corporate cards and spend management shows that it’s not enough to just help companies track what employees are expensing these days. As the market matures and feature sets begin to converge, the players are seeking to differentiate themselves from the competition.

But the point of interest here is these deals can tell us where both companies think they can provide and extract the most value from the market.

These differences come atop another layer of divergence between the two companies: While Brex has instituted a paid software tier of its service, Ramp has not.

Earning more by spending less

Let’s start with Ramp. Launched in 2019, the company is a relative newcomer in the spend management category. But by all accounts, it’s producing some impressive growth numbers. As our colleague Mary Ann Azevedo wrote this morning:

Since the beginning of 2021, the company says it has seen its number (Read more...)

Companies Gone Public in 2021: Visualizing IPO Valuations


This post is by Omri Wallach from Visual Capitalist


Companies Gone Public in 2021

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Companies Gone Public in 2021: Visualizing Valuations

Despite its many tumultuous turns, last year was a productive year for global markets, and companies going public in 2021 benefited.

From much-hyped tech initial public offerings (IPOs) to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market.

This graphic measures 68 companies that have gone public in 2021 — including IPOs, SPACs, and Direct Listings—as well as their subsequent valuations after listing.

Who’s Gone Public in 2021?

Historically, companies that wanted to go public employed one main method above others: the initial public offering (IPO).

But companies going public today readily choose from one of three different options, depending on market situations, associated costs, and shareholder preference:

  • Initial Public Offering (IPO): A private company creates new shares which are underwritten by a financial organization and sold to the public.
  • Special Purpose Acquisition Company (SPAC): (Read more...)

Stripe acquires Bouncer, will integrate its card authentication into the Radar fraud detection tool



On the heels of a $600 million fundraise earlier this year, payments giant Stripe has been on an acquisition march to continue building out its business. In the latest development, the company has acquired Bouncer, a startup based in Oakland that has built a platform to automatically run card authentications and detect fraud in card-based online transactions. Its technology is tailored for mobile transactions and includes a flow to help users authenticate themselves if they are mistakenly flagged, to come back into an app legitimately (hence the name).

Terms of the deal are not being disclosed, but Stripe is acquiring both Bouncer’s technology and the team, which will be integrated into Stripe Radar. Started in 2018, Radar is Stripe’s AI-based anti-fraud technology toolset, and most of the tech — which is focused around preventing fraudulent transactions on the Stripe platform — has been built in-house up to now. Stripe says that Radar already prevents “hundreds of millions of dollars of fraud for businesses” each year.

“Bouncer is a great tool for modern internet businesses. It allows them to quickly identify stolen cards, while also ensuring legitimate customers can transact without being blocked,” said Simon Arscott, business lead for Stripe Radar, in a statement. “We’re thrilled to welcome the Bouncer team, and their years of experience building payment authentication software for businesses, to Stripe and to enable their technology for Radar users. With the addition of advanced card scanning capabilities, Stripe Radar will be able block more fraud (Read more...)

Treasury Prime raises $20M to scale its banking-as-a-service biz



This morning Treasury Prime, a banking-as-a-service startup that delivers its product via APIs, announced that it has closed a $20 million Series B. The capital comes around a year since the startup announced its Series A, and around 1.5 years since it raised its preceding round.

For Treasury Prime, the new capital was an internal affair, with prior investors stepping up to lead its new round of funding. Deciens Capital and QED Investors co-led the round, with Susa Ventures and SaaStr Fund also putting cash into the transaction.

As is increasingly common among insider-led fundraises in recent years, the startup in question was not in dire need of new funding before the new investment came together. In fact, Treasury Prime CEO Chris Dean told TechCrunch that his firm is “super capital efficient” in an interview, adding that it had not tucked into its Series A capital until January of this year.

So, why raise more funds now? To invest aggressively in its business. That plan is cliche for a startup raising new funding, but in the case of Treasury Prime the move isn’t in anticipation of future demand. Dean told TechCrunch that his startups had run into a bottleneck in which it could only take on so much new customer volume. That’s no good for a startup in a competitive sector, so picking up its spend in early 2021 and raising new capital in mid-2021 makes sense as it could help it hire, and absorb more demand, more (Read more...)

Stripe acquires TaxJar to add cloud-based, automated sales tax tools into its payments platform



Stripe, the privately-held payments company now valued at $95 billion, has made an acquisition to expand the range of tools (and services) that it provides to online businesses. It has acquired TaxJar, a popular provider of a cloud-based suite of tax services, which can be used to automatically calculate, report and file sales taxes.

One key point about TaxJar is that it works across a number of geographies and the many different sales tax regimes that each uses — a complex area for a lot of companies that do business online.

Financial terms of the deal are not being disclosed but for some context the company was valued at $179 million post-money when it last raised money, in January 2019, according to PitchBook data.

Stripe has confirmed that all 200 employees of Woburn, MA-based TaxJar are joining the company.

Stripe will be integrating TaxJar technology into its revenue platform — where it will sit alongside Stripe Billing (its subscription tools) and Radar (its fraud prevention technology), and potentially build new services using AI and other technology to automate more functions — but businesses can continue to use TaxJar directly, too.

Launched in 2013, TaxJar today has around 23,000 customers. Stripe didn’t comment on how much of an overlap the two companies have in terms of users, but both have over the years gained a lot of traction with startups and other online businesses, which is likely one reason why TaxJar caught Stripe’s attention.

“There’s a reason TaxJar (Read more...)

Weav raises $4.3M to knit together a universal API for commerce platforms



Weav, which is building a universal API for commerce platforms, is emerging from stealth today with $4.3 million in funding from a bevy of investors, and a partnership with Brex.

Founded last year by engineers Ambika Acharya, Avikam Agur and Nadav Lidor after participating in the W20 YC batch, Weav joins the wave of fintech infrastructure companies that aim to give fintechs and financial institutions a boost. Specifically, Weav’s embedded technology is designed to give these organizations access to “real time, user-permissioned” commerce data that they can use to create new financial products for small businesses.  

Its products allow its customers to connect to multiple platforms with a single API that was developed specifically for the commerce platforms that businesses use to sell products and accept payments. Weav operates under the premise that allowing companies to build and embed new financial products creates new opportunities for e-commerce merchants, creators and other entrepreneurs. 

Left to right: Co-founders Ambika Acharya, Nadav Lidor and Avikam Agur; Image courtesy of Weav

In a short amount of time, Weav has seen impressive traction. Recently, Brex launched Instant Payouts for Shopify sellers using the Weav API. It supports platform integrations such as Stripe, Square, Shopify and PayPal. (More on that later.) Since its API went live in January, “thousands” of businesses have used new products and services built on Weav’s infrastructure, according to Lidor. Its API call volume is growing 300% month over month, he said.

And, the startup has attracted the attention of a (Read more...)

Spend management startup Ramp confirms $115M raise at a $1.6B valuation



This morning, Ramp, which provides corporate cards and spend management software, announced that it has closed $115 million across two investments, the latter of which valued the company at $1.6 billion.

The Information first reported that Ramp was raising new capital. TechCrunch confirmed the news prior to the company’s announcement earlier today. Ramp raised the capital in two tranches, the first of which, a $65 million investment led by D1 Capital Partners, valued the startup at $1.1 billion. A $50 million investment led by Stripe, the online payments giant, pushed its valuation to $1.6 billion.

On a call with TechCrunch, Ramp CEO and co-founder Eric Glyman was demure about the valuation differential between the two investments, only noting that different investing groups can have different assessments of the value of a company. TechCrunch’s read of the two-part fundraising event is that Stripe likely saw Ramp’s growing scale and wanted to put capital into it but had to pay a higher price for coming in after D1 had already written a check.

Regardless, Ramp’s latest capital raises are a multiple of the amount it last raised when it pursued primary funds, namely its $30 million December, 2020 round. The company raised twice in 2020, and once in 2019. More recently, Ramp secured a $150 million credit facility to help it support growing spend volume from its corporate customers.

Ramp provides corporate cards to customers, wrapped in software that helps companies track and manage overall spend. As part of its (Read more...)

Jeff Bezos’ investment fund is backing a startup hoping to be the AWS for SMB accounting



One of the biggest pain points for startups and small businesses is keeping up with back office tasks such as bookkeeping and managing taxes.

QuickBooks, it seems, just doesn’t always cut it.

Three-time co-founders Waseem Daher, Jeff Arnold, and Jessica McKellar formed Pilot with the mission of affordably providing back office services to startups and SMBs. With over 1,000 customers, it has gained serious traction over the years. And Pilot has now also received validation from some big-name investors. On Friday, the company announced a $100 million Series C that doubles the company’s valuation to $1.2 billion.

Bezos Expeditions — Amazon founder Jeff Bezos’ personal investment fund — and Whale Rock Capital (a $10 billion hedge fund) co-led the round, which also included participation from Sequoia Capital, Index Ventures, Authentic Ventures and others. 

Stripe and Index Ventures co-led Pilot’s $40 million Series B in April 2019. The latest financing brings the company’s total funding raised to over $158 million since its 2017 inception.

The founding team certainly has an impressive track record, having founded and sold two previous companies: Ksplice  (to Oracle) and Zupli (to Dropbox).

Pilot’s pitch is about more than just software. The company combines its software with accountants to do things such as provide “CFO Services” to SMBs without a full-stack finance team. It also provides monthly variance analysis for all its bookkeeping customers, essentially serving as a controller for those companies, so they can make better budgeting and spending decisions.

It also helps companies access small (Read more...)