Fundbox Raises Another $176 million in Funding

The San Francisco-based B2B firm unlocks working capital

Fundbox, a small-business lending fintech company, raised another $176 million in funding. New investors Allianz SE and General Catalyst, according to a report from Bloomberg. In addition to the latest round of funding, the firm also established a $150 million credit facility. The firm has now raised more than $300 million.

Although the company did not disclose the valuation of Fundbox, analysts peg it between $500 million and $1 billion.

Fundbox Bets on B2B Lending

Based in San Francisco, Fundbox acts as a payment processor and lender for small businesses. The firm uses artificial intelligence to determine borrowers’ creditworthiness. The AI platform assesses data from software and services used by a company, including their bank account, writes Bloomberg.

The company will use its latest round of capital to bolster its engineering team and build new platforms. Meanwhile, the firm plans to use its new credit facility to loan money to customers, according to COO Prashant Fuloria.

Rising Competition

In an interview with FundBox, the company discussed the swarm of competition in the B2B lending space. Firms like Brex and Square have ramped up lending in the SMB space.

“There will always be competition where people flood the same customers,” said Joseph Engelhart, Allianz X’s CIO. “What we like is the underlying technology where we think they still have an edge in extending credit to the right people.”

In addition to Allianz and General Catalyst, other investors include VC firms Khosla Ventures and Spark Capital Growth. Fundbox also counts investors like Synchrony Financial, Jeff Bezos and Ashton Kutcher.

AI investment remains hot in today’s market. Here’s a list of the top 10 hottest AI startups in 2019.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

Subscribe




Alt Insights

October 17, 2019

Big Reveal by Dallas Fed President: Fed “Actively Looking at and Debating” a Digital Currency

Big Reveal by Dallas Fed President: Fed “Actively Looking at and Debating” a Digital Currency
Shape

Latest Alternative Investment News

Howard Marks: The Negative Interest Rates Memo
October 18, 2019     Alternative Investments, Investments, News

Howard Marks has released his latest memo. In the lengthy memo marked “Re: Mysterious,” he talks about the impact of negative interest rates. More importantly, he talks about how little…

AT&T and Activist Elliott Management Said to Be in Talks
October 18, 2019     Activist Updates, Hedge Funds, Latest News

According to the sources, AT&T and Elliott Management have held discussions, and there is an ongoing dialogue. The two parties may likely agree as early as this month, the Wall…

Artificial Intelligence Will Monitor Cities’ Aging Infrastructure
October 18, 2019     Artificial Intelligence

Artificial intelligence-based analysis of the imagery from aging bridges and tunnels will detect and alert the authorities before their collapse.

Medtronic Launches the First Ever Artificial Intelligence-Based System for Colonoscopy
October 18, 2019     Artificial Intelligence, News

Medtronic’s GI Genius Intelligent Endoscopy Module uses artificial intelligence to detect colorectal polyps. Medtronic has taken a major step forward in the fight against colorectal cancer through intelligent endoscopy. Colorectal…