ZipBooks may claim thousands of SMEs as existing customers and may already have a multi-featured small business accounting service in place, but it’s only recently that the company has secured venture capital support.
On Wednesday (July 20), the startup announced a $2 million seed funding round led by Peak Ventures; Liquid 2 Ventures, Pelion Venture Partners and existing angel investors also participated in the funding, reports said.
ZipBooks provides businesses with an accounting solution that enables companies to manage invoices, track expenses, process card payments and asses accounting data. The firm also enables companies to get financing for their outstanding invoices.
Earlier this year, the startup rolled out a mobile version of its invoice financing solution, launching a “Get Paid Now” button for SMEs to submit invoices on the mobile platform.
ZipBooks said it will use the seed funding to enhance its underwriting capabilities for its invoice financing service and to expand its staff.
The company spoke with PYMNTS earlier this year to discuss why the company provides not just accounting software for small business clients but also a cash management option.
“Growth can be exciting, but it can also be scary,” ZipBooks Vice President of Marketing Brad Hanks said. As its SME customers grow, add staff and raise payroll, their own business customers may begin to extend payment terms, putting pressure on SMEs’ bottom lines, he explained.