Kabbage, Inc., the leading online provider of working capital for small businesses, today announced $30 million in Series C financing.
The company will use this funding to further advance its powerful technology and data platform, expand partnerships, and continue to position Kabbage as the fastest growing small business finance company.
The financing was led by Thomvest Ventures, the venture capital arm of Peter Thomson, Founder and Managing Director of Thomvest Ventures and a director of Thomson Reuters. All major existing investors, including UPS Strategic Enterprise Fund, Mohr Davidow Ventures, BlueRun Ventures, Warren Stephens and David Bonderman participated in the round. In addition, Ron Conway's SV Angel also recently invested in the company. Kabbage has received a total of $56 million in equity to date.
"Kabbage has completely redefined small business finance in less than two years," said Peter Thomson. "Its disruptive business model and technology platform is providing much needed working capital to small businesses quickly and efficiently, helping to drive the overall economy."
Kabbage's unique funding platform, which leverages dozens of data sources to determine real-time business performance and provide funding to businesses in less than seven minutes, has been granted multiple U.S. patents.
"Thomvest is committed to driving the growth of small businesses - as are we - making the firm a natural financing partner for Kabbage," said Rob Frohwein, CEO of Kabbage. "Thomvest has a deep understanding of the financial services industry and has become the recognized leader in the space through its support of the equity and debt requirements of Lending Club. We look forward to working with Thomvest to further accelerate our growth and reach millions of small businesses across new markets."
Since launching its platform two years ago, Kabbage has grown rapidly and now fuels over $800 million in annual sales for its small business customers. Kabbage customers are very active, taking an average of 10 advances per year to help them grow. Additioionally, over the last four months, Kabbage has been awarded "the Most Innovative Company in Financial Services" from PYMNTS.com, "Top 100 Private Company in North America" by Red Herring and "Top 10 Innovators of the year" by Bank Technology News - adding to its numerous industry awards for innovation and disruption.
"UPS and Kabbage share a passion for supporting small business growth," said Alan Gershenhorn, Chief Sales, Marketing, and Strategy Officer, of UPS. "We've increased our investment in Kabbage and we continue to work together to identify innovative ways to support the financing needs of small business."