BlueVine, a Palo Alto-based invoice financing company, has closed a $40 million Series C funding round. The fund will be provided to small businesses, in the form of credit, to help them solve short-term cash flow problems.
The round was led by Menlo Ventures. It attracted participation from existing shareholders such as Lightspeed Venture Partners, Correlation Ventures, 83North as well as Silicon Valley Bank’s new debt facility. Rakuten FinTech Fund, a new investor, also participated, together with other anonymous private investors.
Menlo Ventures’ Tyler Sosin is set to join the board of directors of BlueVine with this investment. Oskar Mielczarek de la Miel, Rakuten FinTech Fund’s managing partner, will be BlueVine’s strategic advisor and board observer. To date, the company has raised a total of $64 million.
Launched in 2014 by CEO Eyal Lifshitz, the main goal of the company is to help small enterprises access the capital they need for expenses, inventory purchases or business expansion. It applies the business model of factoring, where an advance is given on customer invoices to free up their cash flow.
The company said the number of invoices it funded in 2015 increased twelvefold. It is also on track to provide over $200 million in credit to small business this year.
Lifshitz said that they are excited to welcome Rakuten FinTech Fund and Menlo Ventures to their group of esteemed investors as they start a new phase of growth. He added that BlueVine has greatly facilitated the integration of the current financial systems, as they bring in the required speed, efficiency and transparency. He also pointed out that the new fund will enable them to help more small businesses overcome financial hitches.
BlueVine has recently augmented its maximum credit for qualified businesses from $150,000 to $250,000. This money will be used to boost its executive team, build new features and promote its expansion plans.