8fig, which typically offers financing to other companies, closed a big round of financing for itself Tuesday.
Search less. Close more.
Grow your revenue with all-in-one prospecting solutions powered by the leader in private-company data.
The Austin, Texas-based firm raised a $140 million Series B — which has been reported as $40 million in equity and $100 million in a credit facility. The round was led by Koch Disruptive Technologies. Others participating in the round included existing investors Battery Ventures, LocalGlobe, Hetz Ventures, the Jesselson family and Silicon Valley Bank, now a division of First Citizens Bank.
8fig — founded in 2020 in Israel — has now raised $196.5 million to date, according to the company.
The company provides growth plans for small and medium-sized e-commerce businesses that have some sales history. The plan includes funding and financial tools for supply chain management, financial planning and freight and logistics coordination.
The aim of the platform is to keep e-commerce companies flush with inventory to stop growth from curtailing.
“During this period of economic uncertainty, ecommerce businesses are struggling to reach their full potential,” said co-founder and CEO Yaron Shapira in a blog. “The global macroeconomic challenges we are experiencing make it difficult for ecommerce business owners to access the resources they need to succeed. 8fig is providing these online sellers with the financial support and tools necessary to thrive in any economic climate.”
8fig has provided online sellers with more than $500 million since being founded, and increased its annual revenue by 800% last year.
E-commerce companies need significant capital for operations, as inventory and supply chain expenses can eat into a startup’s cash flow and stunt its growth.
Add to that a slowing venture capital market, and alternative financing models such as 8fig likely have become more appealing as cash has become more difficult to find.
While 8fig concentrates on the e-commerce sector, other startups like Miami-based Pipe and New York-based Capchase have entered the alternative finance market to offer startups access to cash that does not include venture funding.
Illustration: Dom Guzman
Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.