Whether it’s buying clothes, software or a new mattress online, digital payment methods are critical for business-to-consumer companies. For some business-to-business (B2B) companies, however, the shit to e-commerce has not fully materialized. Many companies in the sector still rely on wire transfers and checks to carry out their business. To remove friction and modernize payment solutions, Balance has been developing new solutions for B2B companies and recently raised new funds.
On Tuesday, the company announced that it raised $56 million in a Series B round led by Forerunner Ventures. According to Forbes, Balance has tripled its valuation from last year and now sits at a $356 million valuation.
Balance was founded in Tel Aviv but has since established sizeable workforces in San Fransico and New York City. The company helps B2B companies adopt new technologies for digital payments rather than relying on wire transfers or paper checks. According to the company, only about 7 percent of B2B commerce companies have tech that enables them to facilitate digital transactions.
Balance helps bring B2B companies into the digital age by developing flexible payment integrations that can be set on websites or in storefronts. With the platform, companies can set up to receive payment through credit and debit cards or they can simply link a bank account to complete the payment.
“No one was tapping into the opportunity to unlock the potential of B2B e-commerce and marketplaces payments,” Bar Geron, CEO and co-founder of Balance, said in a statement. “We’ve entered the fourth ‘Industrial Revolution’ that will take global trade online, creating a truly efficient market. Balance is bringing centuries-old systems into the modern-age through the power of digitization.”
For large transactions under $5 million, Balance also offers a financing option where it fronts the money and the borrower can pay it back in installments.
With the new capital, the company stated that it will work on developing new solutions to further modernize the B2B sector.
