Bill.com raises $8.5 million in Series C financing
Bill.com, a service that automates and simplifies bill management and payment processes for small and midsized businesses (SMBs) and CPA firms, recently announced that it has completed a Series C financing, netting the company $8.5 million in additional capital.
The new round was led by Jafco Ventures and included participation from existing venture capitalists DCM, Emergence Capital, and August Capital. As part of this financing, Nick Sturiale, general partner at Jafco Ventures, has joined the Bill.com board of directors.
Bill.com has now raised more than $25 million during difficult economic times as it pursues its vision of end-to-end paperless bill management and payment to the millions of SMBs that predominantly still pay bills by hand. While more 70 percent of consumer bills are paid online, only a fraction of that is true for businesses. Businesses are still shuffling and filing paper and printing, signing, and mailing paper checks.
"The Series C financing is an exciting development for Bill.com and its customers," said founder and CEO Rene Lacerte. "Having raised money last summer, this was an opportunistic financing driven by our exceptional results over the last year. The additional capital will be used to accelerate our tremendous growth while continuing to build out what we think is a very unique solution for SMBs and CPA firms who need to drive more efficiency into their day-to-day financial tasks of paying vendors and getting paid."
Bill.com has been on a torrid growth pace, according to the company. Monthly recurring revenue, total number of customers, and unique paid vendors all increased by more than 800 percent in 2009. Meanwhile, SMBs managed more than $500 million in bills last year using Bill.com, demonstrating the product's power, reliability, and ease-of-use. Bill.com has won numerous industry awards, including a 2010 Monarch Innovation Award from Barlow research, a 2009 Innovation Award from CPA Technology Advisors, and was named to the Red Herring Global 100. Last month Bill.com announced that its application has been added to the Google Apps Marketplace, so users can access Bill.com directly from Google Apps.
"The only things certain in life are death, taxes and bills," said Sturiale. "Rene and his team are building an automated service so intelligent and convenient it causes customers to ask themselves, `Why was I manually cutting checks all those years?'"
Nick Sturiale has more than 20 years of experience in the technology industry as both a venture capitalist and an entrepreneur. He has been with three start-ups in product and marketing roles and has developed great insights regarding how best to scale early-stage companies, according to the company. His past investments include XenSource, which was acquired for $500 million. Sturiale also serves on the boards of Splunk and YouSendIt.
Bill.com is an on-demand accounts payable application for CPAs and small and midsized businesses. Bill.com users can receive, route, and pay invoices electronically - they never have to touch a paper bill again - resulting in time and cost savings to finance personnel of over 50 percent versus manual accounts payable and check writing processes. Invoices are e-mailed, scanned, or faxed into the Bill.com service. Digital images of invoices are then routed electronically for approval, ensuring a complete audit trail and eliminating lost or mishandled paper. Bill.com handles check printing and mailing as well as electronic payments, and uses enterprise-class fraud protections that are impractical for small and midsized businesses to implement on their own. Bill.com integrates with popular desktop and on-demand accounting packages, ensuring consistency of financial data and streamlined financial planning, reporting, and audit activities. Bill.com has received numerous awards including a 2009 Innovation Award from CPA Technology Advisor, a four-star rating from PC Magazine, a 2010 Barlow Monarch Innovation Award for innovation in financial services, and was recently named to the Red Herring Global 100.