Autobooks, a SME accounting and payments software provider, has closed a $10m Series A1 round.
The investment comes from both institutional and strategic investors, including Draper Triangle, Baird Capital, Detroit Venture Partners, Invest Michigan and CU Solutions Group.
In March last year, Autobooks closed a $5.5M Series A round, which was led by Draper Triangle Ventures, and featured Regional VCs Detroit Venture Partners and Baird Capital.
Led by Steve Robert, co-founder and CEO, Autobooks claims to be the first ‘fully integrated’ payments & accounting platform for business, delivered through online banking.
It provides an integrated receivables and cash-management platform for banks and credit unions to bundle comprehensive business services – including invoicing, payments, and accounting. Small businesses benefit from better cash flow, insightful reports, and the ability to accept online payments for the lowest processing fees in the industry – while automating routine bookkeeping tasks. While financial institutions have new tools to help grow deposits, increase non-interest income and proactively identify new lending opportunities. According to Autobooks, ‘everyone wins’.
Steve Robert said: “Many fintech companies get tripped up trying to work with banks, by not having a robust vendor risk management (VRM) process in place, or not understanding how to work with core providers such as Jack Henry, FIS, or Fiserv. One place Autobooks really shines is post-implementation support, we literally help financial institutions launch our product, acting on their behalf like a digital agency, providing best practices to drive subscriber growth – an area where banks have historically struggled. It’s not uncommon for Autobooks to obtain 3-5% adoption in its first 90 days – significantly outpacing prior bank product adoption curves such as business bill pay, mobile banking or RDC.”
Despite small businesses making up more than 44 per cent of the GDP, according to the Small Business Administration, robust financial products have been historically out of reach for most businesses. Through partnerships with banks and credit unions, Autobooks claims to be able to able to bring enterprise level tools to small businesses at a low cost and make them easy to use.
Online loan marketplace Lendix recently received €200m in a debt financing round to help support over 600 SMEs, while Caple, a European provider of alternative credit for small to medium-sized companies, received backing from BNP Paribas.
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