Total amount raised
$98 Millions
Latest funding date
08/01/2022
Location
Paystand has successfully raised funds through multiple rounds, attracting a diverse group of 21 investors, including Open Opportunity Fund and Transform Capital. The company focuses on revolutionizing B2B payments using blockchain and cloud technology.
Keep reading to explore the intricacies of Paystand's fundraising journey and the investors backing this innovative platform.
What Is Paystand?
Paystand, founded in 2013, is a cloud-based billing and payment platform for B2B companies. The company is headquartered in Scotts Valley, California, with an additional office in Guadalajara, Mexico.
Founded by Jeremy Almond, Josh Wilbur, and Scott Campbell, Paystand aims to create a more open financial system using blockchain and cloud technology. Their platform digitizes receivables, automates processing, and eliminates transaction fees.
With a team of 51-100 employees, Paystand offers solutions that include zero-fee payment options, automated invoicing, and robust ERP integrations, helping businesses streamline their financial operations.
How Much Funding Has Paystand Raised?
- Seed Round
- Amount Raised: $2M
- Date: April 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their cloud-based billing and payment platform.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: December 2013
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure initial funding for operational expenses and early-stage development.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: March 2015
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue product development and expand market reach.
- Series A
- Amount Raised: $20M
- Date: September 2017
- Lead Investors: LEAP Global Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's capabilities.
- Series A
- Amount Raised: $6M
- Date: November 2017
- Lead Investors: BlueRun Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further accelerate growth and expand the customer base.
- Series B
- Amount Raised: $20M
- Date: February 2020
- Lead Investors: DNX Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in technology and expand the team to support rapid growth.
- Series C
- Amount Raised: $50M
- Date: July 2021
- Lead Investors: NewView Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and development efforts, enhancing the open commercial finance system.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: August 2022
- Lead Investors: Open Opportunity Fund, Transform Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue scaling the business and investing in new technologies.
Total Amount Raised: $98M
Current Valuation: Not publicly disclosed
Key Investors
- NewView Capital
- Details: NewView Capital provides flexible-sized direct investments and innovative VC portfolio acquisitions, pairing funding with significant operational support. They manage over $2 billion in capital.
- Investment Focus Areas: Growth-stage technology companies.
- Notable Investments: Plaid, Duolingo, Forter.
- SoftBank’s Opportunity Fund
- Details: Part of SoftBank, a global technology investment firm. The Opportunity Fund focuses on investing in companies led by founders of color.
- Investment Focus Areas: Technology, innovation, diversity and inclusion.
- Notable Investments: Not publicly disclosed.
- King River Capital
- Details: King River Capital is a venture capital firm that invests in technology companies with a focus on innovation and growth. They participated in Paystand's Series C funding round.
- Investment Focus Areas: Technology, innovation, growth.
- Notable Investments: Not publicly disclosed.
- Industrious Ventures
- Details: Industrious Ventures focuses on early-stage investments in technology and innovative business models. They participated in Paystand's Series C funding round.
- Investment Focus Areas: Early-stage technology, innovative business models.
- Notable Investments: Not publicly disclosed.
- Transform Capital
- Details: Transform Capital invests in transformative technologies and business models. They participated in Paystand's Series C funding round.
- Investment Focus Areas: Transformative technologies, innovative business models.
- Notable Investments: Not publicly disclosed.
What's Next for Paystand?
Paystand stands at the cusp of significant growth opportunities, driven by the increasing adoption of blockchain and cloud technology in financial services. With over 250,000 businesses already using their network, the potential to expand their customer base and enhance their Payments-as-a-Service offering is immense. The company aims to automate the entire cash lifecycle, making payments cashless, feeless, and frictionless, which could revolutionize the B2B payments industry.
Future fundraising opportunities seem promising, given the successful Series C round and the involvement of high-profile investors like NewView Capital and SoftBank’s Opportunity Fund. As Paystand continues to demonstrate growth and innovation, additional funding rounds could support further expansion and technological advancements. However, the company may face challenges such as competition from traditional financial institutions and regulatory hurdles related to blockchain technology.
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