Invoice financing startup MarketInvoice has raised $7.8m from Northzone and Indeed.com cofounder Paul Forster.
The London-based startup allows small businesses to get their hands on funds by selling individual invoices to a pool of investors.
The service is useful to small early-stage businesses because payment terms can often be as long as 120 days which leads to cashflow problems.
Added investor experience
“Whilst we’ve grown significantly over the past two years, we have plans and ambitions to go much further,” said MarketInvoice cofounder Anil Stocker. He added:
By bringing Northzone and Paul Forster on board we are in a strong position to achieve our ambitious goals.
Their experience in scaling businesses will be invaluable for MarketInvoice.
London’s exploding fintech sector
Nearly £300m has been traded across MarketInvoice, of which nearly £200m has been in 2014 alone.
A significant portion of London’s rapidly expanding fintech sector is the alternative financing market and, according to investor Paul Forster, MarketInvoice is at the forefront.
Read more: Alternative finance set to boom in 2015
Alternative financing, which includes peer-to-peer lending and crowdfunding, is set to more than double in the UK in 2015.
Check out our profile on MarketInvoice in our next print magazine, out in December.