Barclays backs Crowdz’s “invoice auction” to boost small business financing



ImpactAlpha, June 10 – Helping small businesses weather cashflow uncertainty is an emerging theme in the fintech sector.  San Jose-based Crowdz’s has raised $5.5 million led by Barclay’s Bank for its blockchain-based invoice factoring platform that accelerates small businesses access to financing while waiting for invoice payments to come through.

Invoice factoring, where companies sell their unpaid invoices to financial institutions, isn’t new. Crowdz aims to simplify the process for businesses and improve transparency for lenders through its online “invoice auction,” which allows financial institutions to bid on and buy businesses’ outstanding invoices, or accounts receivables.

“While companies of all sizes can benefit greatly from our global Invoice Exchange, we founded Crowdz with the goal of ensuring that all small and midsize enterprises in particular have access to the cashflow they need in order to survive and grow,” Crowdz co-founder Payson Johnston said in a statement.

Barclay’s Bank led the company’s Series A round alongside Bold Capital Partners. Crowdz was a participant in Techstar’s London-based cohort last year, hosted in partnership with Barclays.

In April, Brazil- and Israel-based Weel raised $30 million to modernize invoice factoring for small businesses. 

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