Payable Raises $2M For Contractor Payment Platform

Payable, the startup that helps contractors bill for their services and keep track of invoices, has raised $2.1 million, according to a Thursday (Aug. 6) article by TechCrunch.

The investors included Freestyle Capital, Redpoint Ventures and Moment Ventures, among others. The company’s platform runs on a single dashboard, according to the site. The app will have the ability to help contractors also manage their taxes, pending some approvals from the Internal Revenue Service, TechCrunch noted.

The company traces its genesis to the Y Combinator, where a team of former Intuit executives built the platform. The company had formerly been named Tiempo.

In an interview with TechCrunch, the company’s cofounder, Tad Milbourn, said his firm aims to be “the easiest way to manage and pay contractors. We want to help companies streamline their invoicing, onboard their contractors and make it easy to pay them in a tap.”

And, in reference to invoicing, the executive noted that “it’s a hodgepodge. There’s no real clear solution. Some people use invoicing services like FreshBooks or QuickBooks. But you’re dealing with a world of 30- to 60-day delays in payments as a freelancer.”

Under the terms of the Payable model, the company is based on a Software-as-a-Service platform, and the company charges its contractor base $8 per contractor per month. And if there are over five users in a business, there is also an additional base $25 fee per month.

Milbourn said during his interview with TechCrunch that companies like Instacart and Shyp, which have in recent months decided to bring their 1099 workers over to W2 status, are not necessarily cause for concern.

“This is a short-term dislocation. We’re going to find an equilibrium,” Milbourn told the site. “Contractor work is more flexible. W2 works tends to be more repeatable. Both categories lead to very different places. But we’ve created this payment platform that allows you to slice it anyway you want.”

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