CapitalOS, a fintech company providing a first-of-its-kind spend management infrastructure for B2B platforms, today announced its $39M across equity funding and debt financing. The round was led by Group 11 with participation from Upper90, Vera Equity, Slow Ventures and established angel investors, which include Huey Lin (Affirm Founding-COO), Tomer London (Gusto CPO), Michael Sindicich (EVP, GM Navan Expense), Yin Wu (CEO, Pulley) and Oz Alon (HoneyBook CEO) paired with accomplished product builders and operators from Stripe, Navan, Venmo, Houzz and more.

Built by a team of industry veterans from tech companies like Stripe, Microsoft, Lyft and Tipalti, the company has pioneered embedded spend management, bypassing the need for a costly multi-year commitment typically associated with in-house development. Once integrated, CapitalOS handles the entire user journey, from onboarding to ongoing card management.

“Managing expenses is crucial for small businesses, yet many struggle to manage expenses without necessary resources, resulting in wasted time and money,” said Nir Dremer, Co-Founder and CEO of CapitalOS. “We designed a solution that requires just one API call, and eliminates the burden on platforms to handle compliance, risk, underwriting, and capital.”

While spend management software is the standard for saving time and money for most mid-market and enterprise companies, it has remained relatively inaccessible for small businesses. B2B platforms — such as Toast for restaurants, HoneyBook for creative professionals and Workiz for field services — are uniquely positioned to empower small businesses with spend management due to their effective distribution and in-depth proprietary financial data. That said, they often lack the resources and specialization to develop it internally.

Leveraging CapitalOS, platforms are able to focus on their core competency while CapitalOS carries the brunt of managing risk, underwriting, compliance, debt and much more. In doing so, B2B platforms can stand out to the small businesses they service by providing a product that saves them time and money while being far superior to legacy solutions. Furthermore, platforms can also establish a new revenue stream, increase user retention and unlock access to business spending data.

“Using CapitalOS, we were able to launch to production in less than a week,” said Yosi Rahimi, VP, Strategy & Operations at Workiz. “CapitalOS allows us to strengthen our core financial services capabilities at a fraction of the cost compared to in-house development.”

Founded by Nir Dremer and Matan Goldschmiedt, the funding raised will be used to continue scaling its business and support the growth of its expanding network of software platform partners. Currently, CapitalOS is available to thousands of businesses through platforms such as Intuit QuickBooks, Workiz & Roll Credits.

“There are 33 million small businesses (in the US), and the majority of them are not handling spend efficiently. The platforms these businesses use daily are uniquely positioned to help them take control over their spending,” said Dovi Frances, Founding GP of Group 11. “CapitalOS shifts the paradigm by enabling platforms to launch spend management at a fraction of the cost and with a direct impact on the small businesses bottom line.”