Fintech startup BlueVine has raised $102.5 million in a new round of equity funding, the company announced Tuesday.
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BlueVine, which is based in Redwood City, gives financing options for small businesses, including term loans and lines of credit. Most recently in October, the company announced that it was offering checking accounts for small businesses. The account includes 1 percent interest and does not have monthly fees. That’s better than typical checking account interest rates at traditional banks, but not as high as other similar fintech offerings: Robinhood’s upcoming cash management feature, for example, has 1.8 percent interest.
While the company serves small businesses with different forms of financing, it is not a bank. Lines of credit and term loans are issued by Celtic Bank through its partnership with BlueVine, while the checking account offering if backed by Bancorp.
“We’re going to be using the funding to continue to build this out. We’re offering a checking account product with a lot of the functionalities that go with that,” BlueVine CFO Ana Sirbu said in an interview with Crunchbase News.
“We’re going to be focused on… using the funding to really launch and scale this product and launch and scale other products,” she added, declining to specify what other products are in the works.
The new round brings BlueVine’s total funding to more than $692 million, including debt financing, according to Crunchbase. The round was led by ION Crossover Partners with participation from other major existing investors like Lightspeed Ventures and Menlo Ventures.
BlueVine last raised money in July 2018, when it brought in $12 million for its Series E.
The company has served more than 20,000 small businesses to date, Sirbu said, and it has “three digit million revenues” on an annual basis (we’re presuming that means nine-figure revenue, or upwards of $100 million). BlueVine is more than doubling revenue every year–a good sign, as investors like to see revenue growth upwards of 100 percent.
The company is one of many in the fintech space, a growing sector Crunchbase News wrote about just last week. We have a feeling we won’t be done writing about this area for a while.
Illustration Credit: Li-Anne Dias