Toronto-based FundThrough has raised $34 million in a financing round led by ScaleUP Ventures, and Canadian art collector David Mirvish.
The $34 million comes from $9 million in equity funding, and a new $25 million credit facility provided by Intercap.
FundThrough’s platform allows small businesses to receive working capital using outstanding invoices.
This round brings FundThrough’s total equity financing to $15.4 million. In October 2016, the company announced $24.6 million in funding led by ScaleUP Ventures, which included $4.6 million in equity financing, and access to an additional $20 million in loan capital. At the time, the company said it had funded $50 million worth of invoices.
FundThrough’s platform allows small businesses to receive working capital using outstanding invoices, allowing them to have their invoices paid within 24 hours. The goal is to help businesses fill large cash flow gaps as customers take longer to pay invoices.
“Our mission of helping business owners succeed by enabling them to control their cash flow is empowering Canadian businesses and is gaining significant traction in the U.S.” said Steven Uster, co-founder and CEO of FundThrough. “This has led to tremendous growth and innovation since we first launched in 2014.”
The company will use the funding to develop its technology, offer financing to a greater volume of businesses, build integrations with platform partners, and accelerate expansion into US markets.
“Factoring was critical to my parents when they started the business that ended up being Honest Ed’s,” Mirvish said about FundThrough’s business model. “They were selling dresses and letting their customers pay over time—otherwise the customers wouldn’t have been able to buy them. By factoring those receivables, they had the money that enabled them to buy more inventory to sell and that allowed them to grow their business. I understand how factoring can be used by businesses to succeed. FundThrough has brought that traditional factoring that my parents used into the 21st century by using technology. What excited me about FundThrough was its simple online platform that enables businesses to transform future funds into instantly available capital for any business that invoices its customers.”
Photo via Unsplash.