FinTech startup BlueVine today announced that it has raised $60 million in Series E funding round led by Menlo Ventures, with participation from Silicon Valley Bank and existing investors such as Lightspeed Venture Partners and 83North.
Founded by CEO Eyal Lifshitz and CTO Nir Klar in 2013, BlueVine is one of a host of alternative digital financing platforms to have popped up in recent years, offering SMEs and entrepreneurs access to its cloud-based working capital financing platform. The company’s total funded volume since inception is expected to top $1 billion in 2018.
“In just four years, BlueVine has scaled two major financing products — invoice factoring and business line of credit,” BlueVine CEO and founder Eyal Lifshitz said. “We’re building a cutting edge, technology-enabled platform that is helping thousands of small businesses get quick access to funds to address their everyday funding needs. This new investment gives us a stronger market position as we pursue bigger plans for reaching even more small business owners and expanding our offering.”
Working capital is a big issue for the Small businesses. They need capital to grow, but if banks and other traditional lenders won’t lend due to an overabundance of caution, or there is too much red-tape to circumvent, they struggle to get off the ground.
BlueVine said it recently doubled its invoice factoring credit limit to $5 million, while last year it increased its credit facility from $150,000 to $250,000.
BlueVine had raised over $400 million in funding previously, but those fund has arrived in the past year via debt financing. In the last month, the company announced a $200 million credit facility from Credit Suisse.
With the new financing, BlueVine’s plan to expand its line of products catering to small and medium-sized businesses. The startup also plans to use the funding to accelerate R&D hiring.