ATLANTA, GA--(Marketwire - January 13, 2011) - Kabbage, Inc., a provider of working capital advances for online merchants, today announced it has secured $6.65 million in Series A funding. The round was led by BlueRun Ventures, with additional investors including: David Bonderman, founder of TPG Capital, Warren Stephens, CEO of Stephens Inc. and the UPS Strategic Enterprise Fund.
There are more than two million U.S. online merchants that collectively generate over $50 billion a year with limited or no access to working capital. Recognizing this challenge, Kabbage recently launched its automated and proprietary system, which enables customers to go from application to cash in their PayPal account in less than ten minutes. The Kabbage technology platform provides an analysis of online merchants' sales and credit history, customer traffic and reviews and prices and inventory compared to competitors -- all at Internet velocity. By gaining this insight into business performance, Kabbage provides merchants with access to financing options that meet their needs in record time.
"The eBay merchants we currently serve use Kabbage working capital to grow their businesses by acquiring inventory, hiring employees, advertising and purchasing equipment and technology," said Kabbage CEO, Robert Frohwein. "This round of funding will enable us to expand operations into additional marketplaces, such as Amazon, Etsy, Overstock, etc., helping small businesses to further boost today's economy."
Kabbage maintains visibility into the continued operation of its customers through data connections to various marketplaces and other online sources. Once an account holder is with Kabbage, customers can gain access to additional working capital by maintaining positive business growth.
"By offering a compelling alternative to traditional bank lending and credit card products, Kabbage addresses a critical problem facing small businesses today," said BlueRun Ventures General Partner Jonathan Ebinger. "We're thrilled to be fueling small business growth and investing in a company that will enjoy rapid adoption and success."
About Kabbage, Inc.
Kabbage, Inc., headquartered in Atlanta, Georgia, is pioneering the first financial services data, technology and marketing platform just for online sellers, supporting millions of online small and medium sized businesses that make a living selling online. Kabbage leverages data generated through online merchants' activity across various marketplaces and channels to understand merchants and craft financing options that meet their needs. Kabbage is venture funded and privately held. For more information, please visit www.kabbage.com.
About BlueRun Ventures
BlueRun Ventures is a leading early stage venture capital firm focused on Internet, Mobile and Media opportunities. BlueRun works closely with entrepreneurs to build market-changing companies such as PayPal (EBAY), WiderThan (REAL), Slide (GOOG) and Enpocket (NOK). With offices in Menlo Park, Beijing, Shanghai, Seoul, Helsinki and Mumbai, BlueRun brings distributed insight to each market and opportunity to help young companies navigate dynamic markets. For more information, www.brv.com.
Kabbage is a trademark of Kabbage, Inc. All other trademarks are property of their respective owners.
Contact Information:
Contact:
Robert Frohwein
404-290-6116