Canadian fintech startup FundThrough announced today that it has secured $9 million in equity funding and a new $25 million credit facility.
The Series A equity round is led by theatre producer and art collector David Mirvish and ScaleUP Ventures, with participation from several successful entrepreneurs intimate with the cash flow hurdles that FundThrough is solving.
This latest equity round brings FundThrough’s total equity financing to $15.4 million. FundThrough raised a $4.6 million round in 2016 led by Scale Up Ventures. The credit facility is being provided by Intercap, a merchant banking firm based in Toronto.
This latest round of funding will enable FundThrough to accelerate its technology development so it can offer financing to a greater volume of businesses, build integrations with critical platform partners, and accelerate expansion into U.S. markets.
With customers taking longer to pay invoices, business owners are facing increasingly large cash flow gaps for longer periods. FundThrough’s invoice factoring service has experienced significant demand amongst small businesses who want control over when they are paid by their customers, and with partners who recognize that their users worry about covering cash flow gaps.
“Our mission of helping business owners succeed by enabling them to control their cash flow is empowering Canadian businesses and is gaining significant traction in the U.S.” said Steven Uster, Co-Founder and CEO of FundThrough. “This has led to tremendous growth and innovation since we first launched in 2014.”
David Mirvish had a natural connection to the business. “Factoring was critical to my parents when they started the business that ended up being Honest Ed’s. They were selling dresses and letting their customers pay over time – otherwise the customers wouldn’t have been able to buy them. By factoring those receivables, they had the money that enabled them to buy more inventory to sell and that allowed them to grow their business. I understand how factoring can be used by businesses to succeed. FundThrough has brought that traditional factoring that my parents used into the 21st century by using technology” said Mirvish.
“What excited me about FundThrough was its simple online platform that enables businesses to transform future funds into instantly available capital for any business that invoices its customers.”