Tradeshift, the free invoicing platform and wider play to become the de facto social network for “B2B communications and processes”, has raised a $7m round from Notion Capital.
As we’ve previously reported, the Denmark and London, UK-based startup was rumoured to be courting VC funding at an $80-100 million valuation after scoring angel investment from former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also an investor.
Dubbed “Skype for invoicing” based on its disruptive potential, Tradeshift’s free invoicing platform is a direct challenge to overpriced banking systems and credit card processing. Instead of forcing hefty charges onto companies for electronic invoicing, the startup’s business model is based on creating an API platform for free, legally binding invoicing and then allowing third parties to create other applications, as well as leveraging their own.
Additionally, accounts running on Tradeshift constantly monitor exchange rates and automatically withdraw funds or make purchases just when the price is cheapest for the goods that a company requires. However, it’s the app store model, which will launch later this month, and wider B2B social network where Tradeshift plans to make money.
And it looks like the company is making significant headway in picking up customers. Last June it announced a raft of new partners in the SaaS accounting space, for example, and claims 50,000 registered companies across 180 countries including the UK’s National Health Service and Danish and French governments.