One funding that Barclays Bank and the VC firm Bold Capital Partners of the United Kingdom led together in recent times raised more than $5.5 million for an invoice exchange system, called Crowdz, and it is based on blockchain.
Raising $5.5 million for blockchain-based Crowdz
The payments startup Crowdz is engineered to make the entire invoice processing method efficient through the automatization and digitization of a lot of manual processes such as searching for finances, as well as giving them invoices with the use of their B2B payment gateway.
Through this same gateway, they help SMEs digitize their invoices, as well as bring invoice payment collection on track of the expedited speed, Fastrack the cash conversion cycle, and even instantly associate some payments and order with one another.
The Series “A” funding round which Barclays Bank backed from the blockchain-based B2B Crowdz technology was jointly led by Barclays and the investment firm Bold Capital Partners of the United Kingdom, according to the announcements of Crowdz on Tuesday, together with TFX Capital Partners, First Derivatives, and Techstars Ventures also participating.
This investment is going to move toward product development, marketing, as well as sales, and team hiring, according to the announcements of the firm. Crowdz actually sets out to disrupt the payments industry with a focus on the $9 trillion global receivables market by its “Invoice Exchange” based on blockchain. The service even permits companies to digitize invoices, as well as speed up the payment collections automatically.
The purpose of the Crowdz funding
The former economist of the White House, and now the chief strategist of Crowdz, Kevin Hopkins, said that about 90% of the annual inventory of the world of more than 400 billion invoices is still manually processed.
The CEO and founder, named Payson E. Johnston, said that they have found Crowdz with the purpose to make sure that all midsize and small enterprises have access to the cash flow they need to survive, as well as grow. Unluckily, millions of those companies, about 75% of the global B2B commerce and which need invoice financing the most were excluded from the market for a long time.
The payments startup also makes use of the Ethereum or ETH platform; however, it even incorporates with other different networks through Overledger.
Commenting on the significance of a speedy invoice processing system on SMEs or small and midsize enterprises, the CEO said that nowadays small and medium-sized businesses need to wait for a financially crushing 90 to 120 days or even more to get paid.
He added that it is no wonder that more than half of those businesses suffer cash-flow problems every year. But, with the Invoice Exchange of Crowdz, these usually struggling companies may get paid within several weeks, often far less than available elsewhere in the market.
The angel investors
Invoice Exchange also offers an auction platform by which the companies may submit their invoices for the banks, or also the investors, to make offers for financing without even filing additional paperwork, according to the statement.
This isn’t the first time that Barclays Bank openly supported the adoption of blockchain. Last month, for example, it was reported that Barclays joined a trial for testing the technology of blockchain in streamlining of real estate transactions.
The angel investors of Crowdz actually include the venture partner at Techstars Ventures, named Chris Adelsbach, the CTO at IKEA, named Susan Standiford, and the former CEO and founder of Mercedes Pay, named Dr. Jürgen Wolff.
The first Blockchain Invoice Exchange backed by the banking industry is all set to entirely revolutionize the $9 trillion receivables market, as well as fill the gap in invoice processing and automation.