Tabs, an accounts receivable platform for B2B businesses, this week announced a $7 million seed funding round led by Lightspeed Venture Partners. This brings the company’s total amount raised to $12 million, including a pre-seed round from Primary Ventures.
The investment will fuel Tabs’ mission to reimagine B2B AR processes at a critical time when most businesses struggle to collect cash and find profitability. In fact, 55% of B2B invoices in the US are currently overdue, tying up trillions in capital for small and medium businesses.
At the heart of Tabs’ solution is Tabs AI, a proprietary platform built to understand and extract B2B contractual elements. Using this information, Tabs then automates contract ingestion, invoicing, and payments, streamlining a company’s accounting process. Tabs said its customers report a 40% reduction in time to collect, mainly driven by avoiding manual work associated with calculating invoices. This also enables them to take advantage of market opportunities with pricing changes, usage models, and greater sales flexibility.
“Tabs is the only software we saw that could fully automate our complex billing and remittances process. (It) provides all the features we need to manage our receivables in one, easy-to-use platform. Not only are we now saving time on manual tasks, we’re also able to get cash in the door faster,” said Sebastian Hart, director of finance and business development at Findigs, a digital underwriting platform. “Before, we spent multiple days doing manual work just to manage and submit invoices each month. With Tabs, we can reduce that work to near zero. (They) understands the complexity of modern B2B billing and has built the technology to centralize and streamline the entire process. (Now), our finance team is able to spend less time on billing and remittances, and spend more time on work that grows the business.”
“Tabs is tackling a massive problem in B2B,” added Justin Overdorff, partner at Lightspeed. “Most B2B businesses have contracts that vary a lot from customer to customer. This variability not only bogs down finance teams throughout the customer lifecycle but starts to stifle overall company growth and flexibility as a business grows. (It) is a perfect application of AI to understand, structure, and then act on these contracts. With half a billion invoices being sent annually, this is a huge problem to solve.”
“With this funding, (we’re) is set to revolutionize AR and how finance understands the customer,” remarked Ali Hussain, co-founder and CEO of Tabs. “Our platform saves businesses significant time, reduces financial operational risks, and provides advanced board reporting. Longer-term, we are focused on delivering company-changing insights to finance leaders that can fundamentally impact a company’s long-term value. Partnering with new investors like Lightspeed and existing investors Primary Ventures allows us to accelerate our growth and enhance our offerings.”
