Online bill payment and invoicing service Bill.com has secured $38 million in financing from new and existing investors, which include venture capital firms, financial institutions and individuals.
Bill.com has raised $80 million to date, with this latest round earmarked for supporting integrations with financial institutions, marketing for direct and accountant efforts, and product research and development.
Led by new investor Scale Venture Partners, the round also included participation from Bank of America, American Express, Fifth Third Bank, founder of CheckFree founder Pete Kight, and Commerce Ventures, as well as all of Bill.com’s previous investors.
As part of the investment, ScaleVP parnter Rory O’Driscoll, a partner with ScaleVP, has joined the Bill.com board of directors.
The company last major financing came in December 2011 when it secured $15M from a variety of venture capital investors. This particular round was oversubscribed, according to Bill.com founder René Lacerte, who was “very encouraged” by the interest, particularly from financial institutions.
“This highlights the opportunities we see in the financial institutions market and in helping accountants. I think we can do that better now, but challenge will be, and remains, leveraging this opportunity in the market to move businesses away from manual processes and automating it in the cloud,” said Lacerte. “Want to continue getting distribution to fuel the network. Part of that is through financial institutions, so good chunk will be used to support integrations with financial institutions. That said, about 50 percent of our customers do under $1 million in business and have less than 20 employees; accountants tend to bring those in and they remain a key focus for us.”
Lacerte also noted that while there is enough capital to make strategic investments in other businesses that could compliment Bill.com, acquisitions are not the primary focus for the company’s growth plans.
“Our prime focus is on growing the network, that said there are interesting technologies that could help us do that,” said Lacerte. “Over the next three years I don’t have that goal in mind, but this capital does give us ability to do that.”
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