BlueVine has closed $4 million in funding. The investors included Lightspeed Venture Partners, Greylock Partners Correlation Ventures, Kreos Capital, Kima Ventures and various unnamed angel investors. Based in Palo Alto, Calif., BlueVine is an online invoice financing service.
PALO ALTO, California – March 2014 – BlueVine, a new online invoice financing service, announced today the beta launch of its new service for small businesses. Additionally, the company announced the completion of a $4 million financing round, including participation from Lightspeed Venture Partners, Greylock IL (Greylock Partners affiliated fund), Correlation Ventures, Kreos Capital, Kima Ventures and angel investors.
BlueVine’s service is the first completely online invoice financing service. Long customer payment cycles often leave small businesses without enough cash to pay all their bills or invest in growing their company. BlueVine gives small businesses the opportunity to fill the cash-flow gap between services completed and paid invoices by buying the invoices on the spot.
“A lot of small businesses are missing out on growth opportunities and many have hard time paying bills or funding payroll because they are waiting on invoices to be paid. Before today, small businesses dealing with this problem may have maxed out their credit cards or relied on archaic, cumbersome and largely offline services” said Eyal Lifshitz, CEO of BlueVine. “With our beta launch, small business now have access to an intuitive platform for funding their operations and growth without taking on a loan.”
Filling A Gap In The Market
Five years after the recession, businesses still struggle to get funding from their banks. Invoice financing, as an alternative financing method, has been around for a long time. However, existing services require lengthy applications, paper based processes and long turnaround times. In contrast, it takes minutes to open an account with BlueVine. The service integrates with small business accounting software, allowing companies to select the invoices they want to sell with a click of a button and receive funding within one business day.
Additionally, BlueVine is the first invoice financing service to be completely transparent about the fees of their service. Businesses can sell invoices that range from $500 to $10,000, and get up to 97% of the invoice amount. BlueVine takes a commission based on the length of time it takes the business’s customer to pay the invoice.
Unlike other services, BlueVine allows businesses to maintain the payment relationship with their customers, and doesn’t collect payment from customers directly. Instead, BlueVine provides businesses with a unique BlueVine Account where businesses can accept both electronic payments and checks under their company’s name. And since BlueVine can handle all of a business’s incoming invoices, they can also provide valuable payment matching and fraud protection services.