The venture capital money is flowing into fintech and Bill.com and LendUp are the most recent beneficiaries. The investments show confidence in the commercial space and in microlending, respectively. Bill.com, an accounts payable company serving the needs of small and midsize business, received $38 million in a round led by Scale Venture Partners today. Several large financial institutions were also involved, including Bank of America, American Express and Fifth Third. The funding brings Bill.com’s total to some $80 million and serves as powerful validation of interest in commercial fintech. Businesses in the US are thought to be the stronghold of paper checks, but Bill.com is looking to bring more payments to the digital arena. The service allows electronic sending and payment of invoices, along with a complete audit trail. The strong bank interest here is noteworthy. Banks process 80% of electronic payments and businesses just 20%, according to TechCrunch, but that balance is shifting and banks are looking to offer services like this to commercial customers. Meanwhile, LendUp is a microlender with a social mission: helping users of payday loans avoid predatory rates and build a credit history. The startup received $14 million in Series A funding led by Google Ventures, [...]
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