BillFront, a fintech startup which allows digital media firms faster access to their revenues, has raised $35mn (approx. £27.6mn) in Series A funding.
Announcing the completion of the integrated debt and equity round, BillFront said that it will use the funding to expand the company and support the needs of its fast-growing network of customers. The startup also expects to channel the investment into developing its proprietary solution and acquiring new talent.
The funding round was led by global online and mobile financing giant 4finance and major European structured finance solutions provider, NIBC Bank Deutschland. The round also included existing investor Berlin-based FinLeap, an independent fintech company builder.
BillFront’s technology is based on data-driven risk management and connects directly to a client’s invoicing system to automatically suggest eligible invoices for financing. This means that BillFront’s service significantly cuts the wait time for customers receiving financing, compared to traditional finance providers.
BillFront’s clients in the digital media arena include advertising agencies, ad-exchanges and networks, as well as app developers and publishers.
The media industry often suffers from long payment terms set out by large media buyers, stunting the growth of many companies in the field. It is also advantageous for ad-tech companies to be able to offer short payment terms to suppliers, and BillFront is able to help balance these demands.
BillFront co-founder and managing director Christopher Vogt, previously of a leading German demand-side platform, said: “There is a clear need for growth capital within ad-tech, and our solution provides an attractive alternative to expensive equity capital on one hand, and often inflexible debt financings on the other. And, we make requesting funds through our platform so seamless that our clients can focus more on their core business.”
Co-founder Greg Dimitrou, who has 12 years of media investment and banking experience from a former position at J.P. Morgan, also noted that the new financing was an important step for building new partnerships. He commented how the investment would support BillFront in its vision to become the “leading alternative finance platform for digital media businesses.”