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Fundbox, a fintech focused on SMBs, raises $100M at a $1.1B valuation

Fundbox, a company that offers loans and financial products to small businesses, announced today it has raised $100 million in a Series D round at a valuation of $1.1 billion. Or more simply, the company aims to solve SMBs’ working capital needs through..

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Fundbox, a company that offers loans and financial products to small businesses, announced today it has raised $100 million in a Series D round at a valuation of $1.1 billion.

Or more simply, the company aims to solve SMBs’ working capital needs through its credit and payments offerings. It is particularly focused on B2B-focused small businesses.

“We use artificial intelligence to deliver financial products that small business owners use to better run and grow their businesses,” CEO Prashant Fuloria told TechCrunch.

Healthcare of Ontario Pension Plan (HOOPP) led Fundbox’s Series D financing, which brings the company’s total equity raised to $410 million since its 2013 inception. Existing backers Allianz X, Khosla Ventures and The Private Shares Fund joined new investors including Arbor Waypoint Select Fund and a suite of BNY Mellon funds managed by Newton Investment Management North America.

San Francisco-based Fundbox last raised in 2019 — a $175 million Series C that valued the company at $700 million post-money. That same year, the company also opened its Dallas office, now its largest in the U.S., “to capitalize on the talent pool there,” according to Fuloria.

Fundbox is refreshingly transparent about its financials, at least when it comes to revenue. The startup, which saw a pandemic-related boost in business, crossed $100 million in annual revenue run rate earlier this year. Today, it is “well and truly beyond” that, Fuloria said, although it is not yet profitable as it is focused on growth, he said.

Since the company launched its first product in 2013, it has “connected with” over 325,000 small businesses and transacted over $2.5 billion in working capital, the executive added. In 2021, Fundbox tripled its new customer acquisition rate. But the majority of its revenue comes from existing customers, who Fuloria describes as “incredibly loyal.” He believes one of the company’s biggest differentiators — besides its use of AI and data — is that it is focused on SMBs whose customers are other businesses, rather than consumers.

For example, Fundbox works with SMBs that serve consumers like restaurants, such as businesses supplying food or companies supplying cleaning and staffing services to these restaurants.

“These B2B SMBs have the same challenges as everybody else except that they invoice their clients and then they wait to get paid,” Fuloria told TechCrunch. “All of this capital tied up in unpaid receivables is a huge drag on those SMBs. So one of the things that Fundbox does is provide tools to unlock that working capital that’s tied up in unpaid invoices, which actually adds up to over a trillion dollars in the U.S. alone.” Customers, he added, can receive approval in minutes, with access to capital as soon as the next business day.

Khosla led Fundbox’s Series A in 2014 and founding partner and managing director David Weiden said his firm was initially — and remains — impressed with Fundbox’s founders’ ability to recognize there were “dramatic increases in the availability of relevant data in the small business market.”

“Many companies talk about data and using AI; ironically, only a few have any data that demonstrates the actual effectiveness of their approach,” he wrote via email. “Fundbox, including over the exceptional pandemic period, delivered strong results and are on a path to continued growth and scale.”

The company’s customers range from sole proprietors with a few dozen employees and as little as a few hundred thousand dollars a year or businesses with as much as a few million dollars a year in annual revenue. Fundbox asks its customers to connect with it via some aspect of their transactional system, such as their invoicing app or even their bank account.

“We look at these business transactions sitting in their systems and put together what we call a business graph where you can imagine the nodes of the graph being all these small businesses that are trading with each other, with the customers being their vendors and the connections being their transactions,” Fuloria explained. “And that graph becomes our picture of the small business economy to derive signals or features that can be used to assess the risk of a B2B transaction or a B2B small business.”

Image Credits: Fundbox

The company then uses those risk assessments to provide tools, such as working capital on tap or the ability to get instant funding against an invoice. It also integrates with other companies’ technology. For example, it’s partnered with Intuit and is natively integrated inside of QuickBooks. It also shows up in places like FreshBooks’ accounting software or in Synchrony’s merchant center (Synchrony is an investor in Fundbox).

The small end of the small businesses are often ignored by large banks, Fuloria contends, because the average bank spends over $3,500 (largely in human capital) in assessing a small business’s risk. For loans that aren’t much more than that, it’s not exactly worth it. However, to be clear, Fundbox says it offers up to $150,000 in lines of credit.

“Our focus on using AI to make these decisions really helps us shine because more than 99% of all our decisions are completely automated without any human involvement whatsoever,” Fuloria said. “And that lets us really scale and serve customers very, very efficiently.”

While primarily having served as a lender, Fundbox is now expanding into payments and membership-based offerings (with the intent to generate a subscription revenue stream). The company recently launched Flex Pay, which is designed to provide small business owners with additional payment options and greater flexibility for business expenses.

For example, Fundbox Line of Credit customers now get three extra days to pay those expenses. Repayment options include a bank account, credit card or Line of Credit draw, essentially providing small business owners with another tool to buy now, pay later, according to Fuloria.

Looking ahead, next year Fundbox plans to develop a product aimed specifically at entrepreneurs with multiple small businesses as well as new businesses that lack the financial history to access capital through traditional means.
Shrirang Apte, VP of HOOPP, believes Fundbox’s performance this year speaks to the market opportunity “in disrupting the highly underserved world of small business financing, which has traditionally lagged behind consumer financing innovations.”

Fundbox plans to use its new capital to expand its 300-person team, customer acquisition and expanding its product offerings. It recently hired a handful of new execs, including two former Capital One veterans — Khary Scott and Shawn Haigh to serve as VP and head of partnerships and VP of growth marketing, respectively.

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There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

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While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

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According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

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The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

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Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

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According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

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