Anchor Raises $15M in Seed Funding to Launch the First Autonomous Billing Solution for Businesses

  • Fundraising News
  • 02.12.2021 10:40 am

Anchor, the autonomous billing platform, announces it has completed a $15 million seed-funding round. Led by Rapyd Ventures, the new venture capital arm of RapydEntrée Capital, a leading international venture capital firm that has invested in unicorns such as and Riskified and Tal Ventures, a premier Israel based VC with an impressive portfolio of more than 30 companies, including Rapyd, in which Tal’s previous fund was its first investor. Anchor will use the funding to expand its team and extend its partnerships and marketing efforts.

According to a report by Dun & Bradstreet, cash flow issues caused 90 percent of small business failures in 2019. Surprisingly, 60 percent of these businesses were profitable but couldn’t handle the negative cash-flow gap caused mostly by late payments. Today, billing and collections are labor-intensive, expensive, time-consuming, error-prone, and subject to fraud risk. This systemic failure is caused by the inherent manual labor in every billing cycle. Anchor completely automates the billing process, ensuring every business is paid on time and effortlessly.

Anchor connects businesses and their clients through a ‘live online agreement’ that serves as a single source of truth. Anchor’s autonomous end-to-end billing and payments solution covers the entire cycle: starting with the vendor and client agreement and managing the invoicing, payment, and reconciliation steps. This automation frees businesses of all sizes to focus on doing billable work, instead of the time-consuming and costly manual work involved in trying to get paid on time.
Anchor integrates with the client’s payment information and with the service provider’s tech stack, so once the service is delivered, or upon the billing due date, the invoices are automatically populated and sent according to the agreement and deliverables. Once payments are released, Anchor automates the collections and reconciliation.

“The challenges of billing and collections, which make paying a vendor a hefty process, stem from the human element, says Rom Lakritz, Co-founder & CEO of Anchor. “If people could trust the invoices they receive from service providers just like they trust machine-generated invoices from their Spotify and Amazon accounts, billing and payments would no longer be a painful process, and cash would easily flow in a market estimated at over $120 trillion annually.”

“We knew immediately that Anchor was a company in which we wanted to invest,” says Arik Shtilman, CEO of Rapyd. “It has its finger on the pulse of the future of payments and has built a modern framework for B2B payments and billing, poised to become necessary for every business.”

“The B2B payments space is highly fragmented due to each vertical requiring some level of specialization,” says Avi Eyal, co-founder and Managing Partner at Entrée Capital. “Anchor has found such a unique opportunity and we believe it will go on to become a key player in the industry through the deployment of its solutions to thousands of service-oriented businesses.”

Anchor has a remarkable vision paired with an amazing team that can reshape how businesses do business”. Says Eyal Dior, co-founder and Managing Partner at Tal Ventures. “They are catering to an underserved market that is thirsty for innovation and for such an encompassing solution”.

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