By René Lacerte, CEO and Founder, Bill.com
Just the facts, please
Today we are announcing that we have raised an additional $38M in capital, bringing our total to over $80M during the past seven years. This round was led by Rory O’Driscoll of Scale Venture Partners, included all of our existing investors and introduced new support from some premier financial institutions – Bank of America, American Express and Fifth Third Bank. And, to cap all of this off, Pete Kight, the founder of Checkfree, the world’s largest consumer bill payment system, also participated.
Our vision is to make business-to-business (B2B) payments easy. That means we must eliminate the mundane manual processes that surround B2B payments. We feel that we are well on our way to doing that (hence our monthly NetPromoter score of 70+) and are excited to get more done faster with this new capital.
Why the strategic investment from banks
In this round we received awesome validation from core financial institutions, representing some of the best brands in the world. Bank of America, American Express and Fifth Third Bank are some of the best brands when it comes to financial services. The banks invested in us because they see the direction we are leading and they know that while consumer online bill payment has 80% penetration (thanks to companies like Checkfree), businesses have only 20% penetration. Banks and visionaries like Pete Kight recognize that businesses will move to the cloud and make payments from all of their devices. Their validation shows the power of what we have built and their belief that Bill.com is the leader when it comes to business payments.
Why I am pumped
Raising money is always challenging and I never take it for granted. I was fortunate in this round that we actually had term sheets from five lead investors, and all of them were great. There were a few things that tipped the scale (pun intended) in favor of Scale. The primary reason was Rory’s experience both as an entrepreneur and as an investor backing some of the best B2B SaaS companies around – Box, Docusign, and Exact Target. Successful VCs will tell you that one of the most important skills they have is pattern recognition. Recognizing trends and management teams from a distance is critical. Being recognized as part of a B2B SaaS pattern is great external validation.
How big is the opportunity
Business payments is a massive market with over 6B transactions a year worth more than $23T. Today Bill.com manages more than $12B. The opportunity is enormous and one we are well positioned to seize. To date we have spent $40M building a system that enables collaboration across people, systems (accounting and banking), and documents so that businesses can automate their payables, receivables and cash management. Our system today reduces the time to manage your payables, receivables and cash by 75%.
Now, it is time to double down—and that is exactly what we are doing. The investment we received today of $38M is almost double the investment we have received in the last seven years. This capital will allow us to extend our benefits to so many more businesses through so many more partners.
What we will do with the money
At Bill.com, we are defining a new category: The Business Payments Network. And, like any network, you need to care and feed it. $38M will allow us to do both with new product features and broader distribution channels.
Bill.com first and foremost is a product company with essentially five products: AP,AR, cashflow management, Sync, and document management. We have a long list of features to add that will increase the efficiency in each of these areas. As we always have, we will focus on making the end-to-end business processes of small and mid market businesses more efficient. We have a number of areas where our accountant and bookkeeper partners have pushed us to improve their processes as well and we’re excited to continue to strengthen our tools for them.
In addition, we are busy implementing and partnering with some of the leading financial institutions in the country. Once we hire more folks (yep, we’re hiring), we’ll be able to work with even more partners.
If you are a customer or a partner reading this, thank you. Thank you for your awesome support and feedback, which makes us better every day.
And if you are neither of those but are interested in being a customer or joining the team, please let us know.