Finance forms the backbone of any business. Without the ability to see vital metrics, generate recurring revenue, pay invoices, and keep cash-flow on track, operating manually becomes labor-intensive and costly.
Fortunately, the last few years have seen an explosion of options for startups and growth-minded businesses. This new breed of business apps are designed to help companies overcome the obstacles (and fees) of traditional banking and accounting, find the terms and flexibility they need, stabilize their cash-flow, and analyze their financial data in order to make better decisions for their companies.
Whatever your business challenge, there is a piece of software out there that will make life easier.
At Vendr, we take pride in helping our customers forge strong partnerships with some of the most innovative companies in the FinTech space. Here are some names you should know when you’re looking to take your own business processes to the next level.
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When you’re trying to grow your business, having all the best tools in one place can make a difference. This is the premise of newcomer Brex. Founded in 2017, this all-in-one billing system helps companies “spend, save, and earn smarter.” Their offering includes features such as zero-fee banking, cost-savings analysis (to catch budget leaks such as duplicate subscriptions), spending analysis, and more.
In addition to peace-of-mind features, the platform also offers an alternative to the big-bank corporate card, with higher limits for better spending capabilities. The card also features a rewards program, to help reduce costs on business essentials like travel, meals, and SaaS buying. The program has a specific feature offering 3x points on recurring software purchases.
Brex has seen rapid success, garnering 1.2B in total funding from Y Combinator, Kleiner Perkins, Tiger, and others. A recent valuation placed Brex’s valuation at $7.4B according to TechCrunch.
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Subscriptions are the future, and Zuora is helping clients across many industries “successfully launch, manage, and transform into a subscription business.” Zuora helps companies across industries build “subscription experiences,” helping clients with complex offerings to build, iterate, and automate the subscription model. The company also focuses on creating avenues in the “subscription economy” and reducing churn for its clients.
The Zuora platform has grown to encompass every aspect of subscription-based sales models, from billing, to CPQ development, revenue recognition, and analytics. Their Central Platform also helps customers respond to market demands through a multi-layer microservices architecture.
Zuora attracted attention from high-profile venture firms such as Index, Greylock, Redpoint, Shasta, Benchmark, and others, securing nearly $250m in funding, enjoying unicorn status and making its April 2018 IPO on the NYSE at $14/share (ZUO).
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Simplifying AP and AR functions is an excellent way to save time and money. Fortunately, software has made it easier than ever to run your accounting department without hours of manual input, cross-checking, mailing, and invoicing.
Bill.com uses its AI-enabled platform to create connections between businesses, suppliers, and customers. By employing a point-to-point accounts system, suppliers can create an invoice within the Bill.com system in minutes, and deliver it straight to the customer’s account with a few clicks. In return, customers can get their suppliers paid with the same ease, reducing time spent in payment processing by 50%. Everything is done quickly and seamlessly within the platform, leaving both sides free to run their businesses.
The company has secured nearly $280m in funding since its founding in 2006, with support from Silicon Valley Bank, DCM Ventures, Temasek Holdings, Scale Venture Partners, and others. The company debuted on the NYSE in 2019 (BILL).
If you’re working in the world of finance — specifically startups, VC, private equity, or M&A — you know PitchBook. This financial database and analytics platform helps investors, analysts, and others in the private markets game investigate potential investments, stay on top of the data, and make better investing decisions.
On the demand side, PitchBook helps startups refine their pitch, target the right cohort of investors, and raise funds faster.
The company is continuously expanding its datasets and product offering. Recently, the platform introduced patent data as part of its service, allowing potential investors to investigate a target company’s intellectual property (IP) portfolio as part of due diligence.
The power of the platform has earned PitchBook $13m in funding from Morningstar.
Sending money internationally is a fraught process. The red tape, fees, and complications make it difficult for customers and businesses to operate in the global marketplace. Wise (formerly TransferWise) aims to improve the process of sending and receiving money internationally, while reducing the £30B ($41.7m) consumers spend in fees and markups.
The system works by providing customers and business clients with access to a multi-currency account, allowing users to hold more than one currency simultaneously. While the electronic money account operates differently than traditional banking (for instance, you can’t overdraw your Wise account, or accumulate interest), the card allows you to quickly send and receive money through a fixed-fee, fast-moving system.
Everyone loves saving on fees and freeing up their money, so it comes as no surprise Wise achieved unicorn status. They’ve secured over $1.1B through lead investors including Andreesen-Horowitz, Seed Fifty, and Index Ventures alongside others.
If you’re looking to check the pulse of your company, one of the first stops is MRR. Recurring revenue is one of the best methods for stabilizing your financial outlook. Investing in a powerful billing engine to make subscription payments easy is critical.
Enter Recurly. Founded in 2009, this recurring billing engine provides high-volume subscription management to industries like SaaS, streaming services, healthcare, and education. They make it easy for businesses to realize and manage their recurring revenue, reduce churn, and recapture missed payments. Recurly makes things easy for the customer, too. With newly-added frictionless payment options such as Wallet and Venmo, keeping current with your favorite services is seamless.
In under 15 years, Recurly has become the top-performing processor, handling over $7B in transactions annually. This success has earned them over $39.1m in funding from names like Polaris, e.ventures, Fidelity, and F-Prime ventures.
Small businesses still need large-scale help to get everything done. Xero is focused on providing a full suite of services to SMBs through one platform. Clients get on-demand access to their real-time financial data. The platform also offers solutions for whatever clients need, connecting users to over “800 third-party apps, and 200 plus connections to banks and other financial partners”.
The platform enables bookkeepers and accountants to service clients using the Xero platform. In total, Xero boasts a subscriber base of over 2,000,000 customers and over 100,000 partner accountants and bookkeeping professionals. The company boasts an MRR of over $820m, and an annual revenue of $718.2m according to its 2019 annual report.
Xero’s success has helped it secure $684.1m in funding, led by names such as Accel, TCV, Valar Ventures, and Matrix Capital Management.
You put a lot of work into making your business grow. Founded on the principle that you shouldn’t have to work that hard to track business growth, Baremetrics eases the frustration of calculating SaaS metrics without the right tools.
The software makes it easy to analyze and forecast, engage with your audience, and drive performance in your teams.
The platform integrates easily with many of the top financial platforms (including fellow list member Recurly) They offer the ease of zero configuration to give you complete visibility into the most important business metrics. Users can track MRR, LTV, churn and other important indicators in one place.
The company garnered fast attention, securing $800k in funding from Bessemer Venture Partners and General Catalyst. In November 2020, private equity firm Xenon Partners acquired Baremetrics for $4m.