Fundbox, the provider of a data-driven risk engine, has secured $17.5 million in Series A funding led by Khosla Ventures to fill the void left by banks and credit companies, and fix the small business economy using data science. The Fundbox engine removes human error and bias from the risk assessment process, leveraging data science, behavioral analysis and finance theory to automatically analyze a user’s business and invoices. It processes tens of thousands of invoices daily, offering small business owners the ability to fix their cash flow by advancing payments for unpaid invoices, eliminating the net plus 30-, 60-, 90-day problem that can inhibit the growth of small businesses.
The round also included participation from SV Angel. The capital will be used to scale data operations and product, increase marketing outreach efforts, expand the company's San Francisco headquarters and make additional strategic hires in the Bay Area.