The Receivables Exchange, an online marketplace for real-time trading of accounts receivable, this morning announced that it has closed $17 million in Series C financing led by Boston, MA-based Bain Capital Ventures, with prior investors Redpoint Ventures and Prism Ventureworks participating.
This third round of financing brings the total invested into the company to just south of $30 million.
The Receivables Exchange started its online receivables financing marketplace in 2008 with the launch of its proprietary receivables trading platform.
The platform essentially enables businesses to sell their accounts receivable to a global network of accredited institutional investors that compete in real-time to purchase them. That way, companies are able to reduce their cash conversion cycles and gain access to capital that can be reinvested into growing their core business operations.
According to the company, the majority of companies have more than 60% of their working capital tied up in accounts receivable, limiting their ability to fund their own growth and contribute to that of the U.S. economy.
The Receivables Exchange says it will use the funding to scale its operations and sales activities and to expand its marketing, business development and corporate partnership efforts.
The Receivables Exchange is the online marketplace for the sale of accounts receivable. Small and midsize businesses gain access to working capital by auctioning invoices to a global network of institutional buyers who compete to buy invoices via a real-time marketplace. By connecting businesses with a community of banks, financing companies and factors looking to purchase outstanding invoices, invoices are turned into cash in as little as 24 hours for as much as 99-98 cents on the dollar. Unlike...
Bain Capital Ventures, a Boston-based venture capital affiliate of Bain Capital, was founded with the mission of leveraging a customer focused and operational approach to helping young and growing entrepreneurial companies become market leaders. Bain Capital Ventures’ history dates back to 1984, with investments in over 110 early and growth stage companies such as Staples, DoubleClick, Aspect Development, LinkedIn, Rent the Runway, Shopping.com, Taleo, SolarWinds, Brontes Technologies, m-Qube, ProfitLogic, Network Intelligence and MinuteClinic. Bain Capital Ventures currently has ~$2...