Many companies are bringing one-click checkout to direct-to-consumer marketplaces, but few are developing similar tools for business-to-business marketplaces. B2B Payment Quantity Business-to-consumer is five times the size of retail payments, yet most of those payments are not being made online.
he is there balance The company, co-founded by former PayPal employees Bar Geron and Yoni Shuster, supports B2B e-commerce merchants and marketplaces by digitizing those capabilities through a one-click checkout payment tool so companies can receive payments instantly, Can process any payment method and offer flexible terms.
We outlined the two-year-old company last year when it raised $25 million in a Series A fund led by Ribbit Capital. The balance is now back with $56 million in Series B funding, this time led by Forerunner. The new investment gives the company $87 million in total funding raised so far.
“Over the years, the consumer has taken the lead in modernizing our transactions, but innovation in B2B commerce lags far behind the B2C space,” Forerunner founder and managing partner Kirsten Green said in a written statement. “The digital age has incredible potential to modernize broad aspects of how B2B commerce operates, and the market opportunity is enormous – today only 7% of the $120 trillion B2B payment volume operates digitally.”
Joining the new round are Salesforce Ventures, HubSpot Ventures, Lyra Ventures, Gramercy Ventures and a group of B2B e-commerce leaders as angel investors, including former Shopify CMO Jeff Wiesner and Faire co-founder and CTO Marcelo. Cortes is included. Ribbit, as well as other existing investors Lightspeed Ventures, Avid Ventures, Upwest and Jibe, also participated in the Series B.
“The momentum in the business is being felt in real time,” CEO Geron told Meczyki.Net. “Even though we did a big Series A round with the new economy and challenges, we made the right move to do another round sooner rather than later. We now have the longevity to get past that next phase.”
Last year, the balance was still in its early days, though my colleague Mary Ann Azevedo reported that the company had 30 employees and experienced nearly 500% to 600% growth since it began its operations in February 2021.
Today, the company has about 70 employees and is working with hundreds of merchants and dozens of B2B marketplaces — a 10-fold increase from last year, Geron said. It targets legacy industries not digitally savvy in payments, including timber, chemicals, steel, retail and food.
Some of its clients include lumber marketplace Materials Exchange, chemical supply marketplace ChemDirect, wholesale retail marketplace Abound and restaurant ordering platform Notch.
Balance will use this funding to fund customer acquisition and grow its teams across markets, engineering, sales, customer success, product and engineering and operations. Geron plans to increase the workforce to about 100 by the end of the year.
Overall, the checkout location reflects a new phase of the economy, Geron said. Commoditized goods are now traded online, but face an inefficient market.
“It’s not like B2C, you can’t go online and find thousands of steel suppliers,” he said. “We are taking the next step in e-commerce and doing it for the entire supply chain. Now with Balance, you can conduct self-service transactions in ways that were earlier available only in B2C channels.”