Behalf Lands Equity Funding and Secures $150 Million in Debt Financing

Alternative lending startup Behalf just received more fuel to help power small-and-medium-sized businesses (SMBs). The New York-based company received $150 million in debt financing and an undisclosed amount of equity funding this week.

The debt round was led by a private investment fund managed by Soros Fund Management, with previous investor Viola Credit also participating. Both investors also contributed to Behalf’s equity round; the company’s equity funds now total more than $156 million.

Benjy Feinberg, founder and CEO of Behalf said that the funding is a significant step forward that will allow Behalf  to “expand our fast-growing e-commerce B2B financing platform and enhance our ability to provide the best business terms to customers, in a fraction of the time of a traditional business lender.”

Behalf extends short-term purchase financing to underserved SMBs by using technology and big data to assess the creditworthiness of the business and its owner. Unlike other alternative SMB lenders such as Kabbage or OnDeck, Behalf does not issue funds directly to the SMB. Instead, the startup pays the small business’ vendors on the SMB’s behalf (hence the name Behalf). Having flexibility in repaying their suppliers helps merchants increase their production and ultimately grow their business.

Uri Galai, partner at Viola Credit said Behalf’s technology “will change the landscape of business lending.” He added, “Behalf understands that the buyer-seller relationship has changed, and is providing an unparalleled solution to the increased demands from vendors and their customers seeking financing.”

Feinberg showcased Behalf’s vendor payment platform at FinovateFall 2014. Since it was founded in 2012, the company tripled its revenue and now counts Lenovo, Best Buy and PCM in its network of accepting partners. Last year, the company partnered with Utah-based FinWise Bank to offer SMBs a broader range of financing solutions.

Finovate Alumni News


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  • Behalf Lands Equity Funding and Secures $150 Million in Debt Financing.
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Around the web

  • Challenger bank Tandem to leverage Personetics Cognitive Banking Brain to provide personalized financial guidance for customers.
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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Behalf Teams Up with FinWise Bank to Boost Small Business Lending Options

Utah-based FinWise Bank, a subsidiary of All West Bancorp, is partnering with alternative small business lender Behalf. Together the companies hope to provide a broader range of financing solutions to a greater number of SME clients. “We founded Behalf in advocacy of small businesses and solving their working capital needs with innovative technology solutions is our central focus,” company co-founder and CEO Benjy Feinberg said. “Partnering with FinWise allows us to expand our product offering and serve more customers with financial tools that help them grow,” he added.

Behalf enables its merchant partners to offer business clients instant credit and flexible payment terms at the point of sale.  In fact, term flexibility is the key area of focus for Behalf, especially because it is a key pain point for many small businesses. By paying vendors directly “on behalf” of small businesses – as well as managing repayment and collections – Behalf gives small businesses the ability to match financing terms with the needs and timetable of their business, not the other way around. “Now she has the time to grow her business, and the credit to grow her business because she now has the terms that she needs,” Feinberg said, explaining how the platform worked for small business owners during his company’s FinovateFall demo. At the same time, he added, vendors enjoy working with Behalf because they get paid on day one as opposed to day 29 or day 89.

Behalf produces credit decisions in real-time. Business clients provide personal and business addresses, as well as a social security number, and Behalf tells them what size credit line the business qualifies for. Businesses can use the line of credit for both online and offline purchases, and the size of the client’s available line of credit increases each time the client pays off Behalf. Rather than negotiating terms with multiple vendors, Behalf Director of Product Andrew Abshere explained, the Behalf client now has flexible terms with a single payee. “She can take these terms with her anywhere, to any vendor,” Abshere said. He then showed how clients set up vendor payments directly through the Behalf platform, adjust the length and frequency of repayment, and add bank details to enable automatic repayment. Once the bank information is authorized, Behalf contacts the client’s vendors by e-mail, notifying them that Behalf will be paying “on behalf” of the client. The process takes less than five minutes.

David Tillis, VP of Specialty Lending at FinWise Bank praised Behalf’s “talented people, technology, and acquisition channel” which he said would “change the landscape of business lending.” A self-described, “financial tech bank with a community heart,” FinWise Bank was founded in 2000 and is headquartered in Sandy, Utah. Also known as Utah Community Bank, FinWise Bank has teamed up with fintechs in the lending space before, most recently partnering with direct loan provider, LendingPoint, in March

Founded in 2011 and headquartered in New York City, Behalf demonstrated its vendor platform at FinovateFall 2014. A member of CB Insights’ Fintech 250, Behalf has raised $156 million in funding, including a $27 million Series C a year ago this month. MissionOG, Spark Capital, and Viola Growth are among the company’s investors.

Finovate Alumni News


  • Behalf Teams Up with FinWise Bank to Boost Small Business Lending Options
  • Samsung to Power Biometric Authentication Pilot for Bank of America
  • ACH Alert’s Fraud Prevention HQ Empowers Account Holders to Stop Suspicious Transactions

Around the web

  • PayPal unveils two new innovation labs in India.
  • Albany, New York-based SEFCU chooses Fiserv as technology partner.
  • FICO selects Amazon Web Services as its cloud provider.
  • SF Chronicle profiles mortgagetech innovator, Unison, in feature on downpayment assistance for Bay Area homebuyers. Join them next month in New York for FinovateFall.
  • GoBankingRates highlights AutoGravity, M1 Finance, Venmo, Mint in list of best personal finance apps
  • hires Julie Filion as Chief Marketing Officer.
  • eMoney Advisor moving into Rhode Island offices, expects to hire 100 by 2020.
  • Flywire Offers Summertime Deal for International Tuition Payments with Mastercard.
  • StreetShares adds Heather Tuason as new Chief Product Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

44 Alums Populate CB Insights’ Fintech 250 List

This week, CB Insights unveiled its Fintech 250 list. The research outfit selected 250 emerging, private companies in 17 sub-sectors of fintech that are changing the face of financial services. The roster includes 44 Finovate and FinDEVr alums that were selected using CB Insights’ data-driven process that analyzes company momentum, market participation, funds raised, and investor quality.

The list is in alphabetical order.









Credit Karma





Gusto (formerly ZenPayroll)










Personal Capital





Ripple Labs
















Finovate Alumni News


  • Payworks Unveils Next Generation Payment Gateway, Pulse
  • Check out this week’s FinDEVr APIntelligence
  • Jumio Raises $15 Million from its New Owner, Centana Growth Partners

Around the web

  • Currency Cloud partners with Arkea Banking Services to provide faster payments and better reconciliation. Join Currency Cloud in New York next week for FinovateFall 2016.
  • looks at Behalf and its recent $27 million Series C.
  • Bluefin Payment Systems unveils PAX devices for PCI-validated, point-to-point encryption (P2PE).
  • Uber and Visa team up on local offers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Behalf Raises $27 Million


In a round led by new investor Viola Growth, small business financing innovator Behalf has raised $27 million in Series C funding. The investment will support the company’s increased investment in business development as well as further innovation in its purchase-financing platform.

Calling small businesses the “unsung heroes of the U.S. economy,” Behalf CEO and co-founder Benjy Feinberg pointed to his company’s platform as a solution to help them get the necessary financing to grow. “Behalf has a simple solution, driven by data and technology, that allows us to provide well-priced and flexible credit tools to help SMBs and their suppliers grow profitably,” he said. Also participating in the round were previous investors Sequoia Capital, Spark Capital, MissionOG, and Vintage. The Series C takes Behalf’s total capital to $156 million.


CEO Benjy Feinberg presented Behalf’s Vendor Platform at FinovateFall 2014.

Behalf pays vendors directly on their small client’s behalf—hence, the name. This approach, which relies on Behalf’s proprietary credit scoring technology, helps bring short-term purchase financing to small businesses faster and more efficiently: Small businesses can buy up to $50,000 in inventory on the Behalf platform, with terms ranging from $10 to $30 for every $1,000 per month borrowed.

Founded in 2011 and headquartered in New York City, Behalf demonstrated its Vendor Platform at FinovateFall 2014. The company has doubled revenues every six months since inception, and recently added Jorgen Bocklage as CFO. Bocklage founded 118 118 Money and is a former VP of finance at Dashlane, a fellow Finovate alum.

Harel Beit-On, Viola Growth founder and general partner who will be joining the Behalf board of directors, praised the company’s team and its growth, saying the company had targeted a “fast growing market” that was “valued by analysts in the trillions, that is underserved by banks.” Behalf says over the next twelve months it will be adding talent in a variety of roles ranging from marketing to engineering.

Finovate Alumni News


  • Behalf Raises $27 Million in New Funding
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  • EyeVerify Teams Up with BioConnect to Boost Payment Security.

Around the web

  • PittsburghPost-Gazette feature on local fintech incubator SteelBridge Laboratories quotes Om Kundu, CEO of InSpirAVE. See InSpirAVE at FinovateFall in New York next week.
  • Massachusetts-based Randolph Savings Bank re-ups with Fiserv for front- and back-office technology.
  • Wipro announces partnership with Stibo Systems to offer Master Data Management (MDM) solutions.
  • looks at TransferWise and its growing independence from bank partners.
  • Jack Henry & Associates Awarded by Aite Group for Core Processing.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Behalf Closes $119 Million Series B


Check out the big raise for Behalf.

Alternative small-business financier Behalf announced a $119 million investment that takes the company’s total capital to $129 million. The Series B round was led by MissionOG, an early to growth-stage VC firm, and the new funding will go toward adding staff, as well as providing more and larger working capital lines to SMEs.

Joining MissionOG in the Series B were Maverick Ventures, Sequoia Capital, Spark Capital, and Victory Park Capital. Victory Park Capital provided a credit facility as well as an equity contribution.

Behalf also announced the opening of new headquarters in New York City.


From left: Behalf VP of Product Meeka Metzger; Director of Product, Andrew Abshere; and founder and CEO Benjy Feinberg presented the Behalf’s Vendor Platform at FinovateFall 2014 in New York.

Behalf enables small businesses to buy up to a $50,000 inventory. The company directly pays vendors for the small business, and the business pays Behalf back on terms ranging from $10-$30 per $1,000 per month. Behalf uses its proprietary credit-scoring technology to approve as many as 40% of its applicants, and can provide credit decisions in less than four minutes.

Merchants appreciate being able to pay vendors on whatever terms their vendors demand, and repay Behalf on terms that may be more flexible and favorable to them.

The company began 2015 with a new collaboration involving MasterCard and Comdata, to provide financing options for small businesses using MasterCard. In February, Behalf CEO Benjy Feinberg was interviewed by Ideamensch, and in March, the company was a finalist in the “Best B2B Innovation” category at the 2015 PYMNTS Innovator Awards 2015. Founded in 2011 and based in New York City, Behalf demonstrated its Vendor Platform at its Finovate debut, FinovateFall 2014.

Finovate Alumni News


  • “Behalf Closes $119 Million Series D”
  • “Neon Release Adds Touch ID and Enhanced Notifications to Oink 2.0″
  • “ShopKeep Rings Up $60 Million Investment”

Around the web

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  • Payments Views talks with Doug Yeager, HCE inventor and CEO of SimplyTapp, in its latest podcast.
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  • American Banker considers how banks are using startups such as Social Money and Qapital to bolster their offerings.
  • Dashlane launches One-Tap Password Changer for Apple Watch and iPhone.
  • John Hancock Retirement Plan Services now offers Morningstar’s HelloWallet financial wellness tool to plan-sponsors on its Total Retirement Solution platform.
  • Arroweye Solutions to provide EMV Credit and Debit Cards for Mountain America Credit Union.
  • TechCrunch: Betterment tops 100,000 customers and $2.5 billion AUM.
  • Taulia reports record revenue and ten customer wins for Q2 2015.
  • Mobile Payments Today looks at InComm’s drive to bring open-loop prepaid to mobile wallets.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.