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Blockchain-based trade finance startup Crowdz has raised $5.5 million in a Series A investment round to revolutionize the $9 trillion receivables market worldwide.
The round was led by British investment bank Barclays and venture capital firm BOLD Capital Partners. They were also joined by TFX Capital Partners, Techstars Ventures, and First Derivatives. The funding will be used for product development, marketing, sales, and hiring for Crowdz.
According to a press release, Crowdz's blockchain-based Invoice Exchange will make invoice processing more efficient by digitizing and automatizing the conventional manual system. The technology, which has a built-in business-to-business (B2B) payment gateway, can also automate the process of finding financing banks or investors and receiving offers from financiers at the lowest possible rates.
Crowdz Co-Founder and CEO Payson E. Johnston noted that the delays in manual invoice handling are now compounded by modern invoicing methods. He pointed out that small and midsize enterprises (SMEs) often suffer from cash flow problems as they have to wait between 90 and 120 days or more to receive payments.
With this in mind, Crowdz aims to ensure that SMEs can easily gain access to the cash flow they need, saying Crowdz Invoice Exchange can deliver payments to these companies in a few days or less-at rates.
“This change alone not only will make life easier for small and midsize company leaders, but also will enable these businesses to grow and prosper in ways never before possible,” he added.
The press release also noted that the startup's mission to push the boundaries of B2B payments using its revolutionary Invoice Exchange aligns with support for financial innovation at Barclays.
“Our team is excited to see them enter this next phase of growth, and look forward to supporting them further as they work to disrupt the payments industry, providing superior service to our customers and clients,” said John Stecher, Chief Technology and Innovation Officer, Barclays.
The announcement follows the selection of the Silicon Valley-based startup to participate in the blockchain track for the 500 Startups San Francisco-based Seed Accelerator program late in 2018.
