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.