BlueVine Raises $60 Million in Major Equity Deal
BlueVine announced this week that it closed $60 million in equity funding, the company’s largest funding round to date. The series E round was led by Menlo Ventures and includes new investors, including SVB Capital. All major existing investors also participated.
This new financing will be used to expand the company’s current invoice factoring and business line of credit products, and to develop new products.
“Our vision is to let our customers guide us,” BlueVine Chief Revenue Officer Eric Sager told deBanked, with regard to what products might come next.
BlueVine also plans to use the funding to accelerate R&D hiring. BlueVine’s total funded volume since inception is expected to top $1 billion this year, according to the company’s press release.
“In just four years, BlueVine has scaled two major financing products,” said BlueVine CEO and founder Eyal Lifshitz.
Founded in 2013, the company started with a factoring product and later introduced a line of credit product. BlueVine provides business lines of credit up to $250,000 and invoice factoring lines up to $5 million. These maximum credit lines have been steadily increasing, with the factoring line of credit twice as large as it was at the beginning of the year, according to a deBanked story from February. And its business line of credit was $150,000 at the start of the year.
The company generates its revenue about 50-50 from its factoring and line of credit products, and about 50 percent of its factoring clients also use its line of credit product, Sager said.
This new $60 million investment follows a credit facility of $200 million with Credit Suisse last month.
“BlueVine has continued to impress us since we first invested in 2015,” said Tyler Sosin, a partner at Menlo Ventures, in a written statement. “The company has demonstrated dramatic, sustainable growth and has proven that there is enduring value in developing a comprehensive offering of credit products that small and medium sized businesses can use throughout their lifetimes.”
Headquartered in Redwood City, CA, BlueVine also has offices in New Orleans, Jersey City and Tel Aviv, and employs approximately 200 people.
Last modified: June 7, 2018
Todd Stone is a reporter for deBanked.