TORONTO, June 19, 2018 (GLOBE NEWSWIRE) -- Financial technology company FundThrough announced today that it has secured $9 million in equity funding and a new $25 million credit facility. The Series A equity round is led by David Mirvish and ScaleUP Ventures, with participation from several successful entrepreneurs intimate with the cash flow hurdles that FundThrough is solving. This latest equity round brings FundThrough’s total equity financing to $15.4 million. The credit facility is being provided by Intercap Inc., a merchant banking firm based in Toronto. This latest round of funding will enable FundThrough to accelerate its technology development so it can offer financing to a greater volume of businesses, build integrations with critical platform partners, and accelerate expansion into U.S. markets.
With customers taking longer to pay invoices, business owners are facing increasingly large cash flow gaps for longer periods. FundThrough’s invoice factoring service has experienced significant demand amongst small businesses who want control over when they are paid by their customers, and with partners who recognize that their users worry about covering cash flow gaps.
“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.”
David Mirvish had a natural connection to the business. “Factoring was critical to my parents when they started the business that ended up being Honest Ed’s. 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,” said Mirvish. “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.”
“We are thrilled by FundThrough’s accomplishments and the traction they have made forging integrations with the likes of QuickBooks and partnerships with the likes of Cortex to reach business owners and building their innovative risk model,” said Kent Thexton, Managing Partner of ScaleUP Ventures. “FundThrough’s revenue and user base has grown 8x and 5x year-over-year and their growth is poised to accelerate.”
James Merkur, President of Intercap added, “We were drawn to FundThrough’s innovative technology based underwriting model and the secured, short duration asset class. FundThrough provides an attractive, easy to use solution to help business owners navigate cash flow gaps that every entrepreneur knows too well. We are proud to partner with FundThrough as their largest lender.”
FundThrough has emerged as a leading player in the fintech small business working capital space and is investing in advancing its credit model using artificial intelligence and machine learning, ensuring a seamless onboarding and funding experience, and expanding across North America.
About FundThrough
FundThrough offers businesses flexible, on-demand working capital using their outstanding invoices to overcome cash flow gaps and accelerate their growth. The invoice factoring platform empowers small, new, and growing businesses in the U.S. and Canada to have their invoices paid when they want in as little as 24 hours. For more information, visit www.fundthrough.com
About ScaleUP Ventures
ScaleUP Ventures is Canada's premier early-stage venture fund designed to assist the nation's most promising startups by providing "Capital + Connections"; a unique combination of funding and strong connections to corporate Canada via seasoned executives, entrepreneurs, and investors. The fund targets Seed and Series-A sized investments in high growth technology companies that have begun to show traction in large, expanding markets. ScaleUP's unique model helps companies scale more rapidly toward global success. For more information please visit suv.vc or contact Danielle Smith, Marketing and Operations Manager at danielle@suv.vc
About Intercap Inc.
Intercap Inc. is a merchant bank based in Toronto, Canada. Intercap Income invests in attractive yield- oriented investments with strong principal protection. Intercap Equity invests across several industries, with a focus on growth-oriented technology and consumer companies. Intercap invests in early stage businesses as well as larger private and public corporations. We target opportunities where we can play a value added active role in partnering with great entrepreneurs. Unlike a traditional private equity fund, our focus is on long term investment returns.
For further information, please contact: Jonathan Davis at media@fundthrough.com or 1-800-766-0460
