CapitalOS is reporting $39 million in funding as the startup exits stealth mode. According to a statement issued by the company, the capital infusion is a combination of both debt and equity capital. CapitalOS did not provide a breakdown.
The funding was led by Group 11 along with the participation of other investors, including Upper90, Vera Equity, Slow Ventures, and individuals including Huey Lin (Affirm Founding-COO), Tomer London (Gusto CPO), Michael Sindicich (EVP, GM Navan Expense), Yin Wu (CEO, Pulley) and Oz Alon (HoneyBook CEO).
CapitalOS claims to be the “first of its kind” embedded spend management platform targeting the B2B sector.
The company explains that while spend management software is the standard for many mid-market and enterprise companies, it is relatively inaccessible for small businesses.
Nir Dremer, co-founder and CEO of CapitalOS, said that managing expenses for small businesses is vital, but resources are lacking for SMEs.
“We designed a solution that requires just one API call, and eliminates the burden on platforms to handle compliance, risk, underwriting, and capital,” said Dremer.
CapitalOS aims to provide features for SMEs to manage risk, underwriting, compliance, debt, and more.
Founded by Dremer and Matan Goldschmidt, the funding raised is expected to be used to scale the business and expand its network of software platform partners. Currently, CapitalOS is available to thousands of businesses through platforms such as Intuit QuickBooks and Workiz & Roll Credits.
“There are 33 million small businesses (in the US), and the majority of them are not handling spend efficiently. The platforms these businesses use daily are uniquely positioned to help them take control over their spending,” said Dovi Frances, founding GP of Group 11. Frances sees CapitalOS as a paradigm-changing plafform.
The founding team reports a background from well-known tech firms like Stripe, Microsoft, Lyft, and Tipalti,