Startup anchor: B2B payment processing platform
Israeli fintech Anchor is seeking to streamline B2B transactions for small businesses, according to a report.
Anchor was founded in 2019 by CEO Rom Lakritz, CTO Leeor Aharon and CRO Omry Man. The company is headquartered in Tel Aviv, and the company’s modus operandi offers a complete, self-contained, end-to-end billing and payment solution that works for small businesses.
Anchor’s platform allows businesses to enter into electronic agreements, which are a more versatile, non-blockchain version of smart contracts.
The agreements would have defined the terms and conditions of the collaborations, including the payments. They also function as the only source of truth for automated payments and collect bank details from businesses.
The setup allows businesses to issue, pay and reconcile invoices in a fully automated way, streamlining the entire payment cycle from a difficult and problematic process to something simpler.
B2B payments are often slower than new consumer billing efforts, the report notes.
The idea of companies like Anchor is to help turn cash flow into something more cohesive, relieving a previous problem that was hindering growth.
Anchor, by removing the issue, would have saved businesses time rather than focusing too much on contacting customers for payments.
Anchor also reportedly closed a $15 million seed funding round last December.
Read more: FinTech start-up Israel anchor closes $15M seed round
The round was led by Rapyd Ventures, Entrée Capital and Tal Ventures, according to a press release issued Wednesday.
The money was intended to grow the team beyond its numbers at the time, add new partners, and work on new marketing efforts.
“The challenges of invoicing and collections, which make paying a supplier a cumbersome process, stem from the human element,” Lakritz said. “If people could trust the bills they receive from service providers, just as they trust the machine-generated bills of their Spotify and Amazon accounts, billing and payments would no longer be a burdensome process, and cash would flow easily in a market estimated at more than $120 billion a year.