Detroit-based Autobooks Inc. has closed on a $25 million Series B fundraising effort to help it grow domestically and internationally.
The latest round of venture capital for the financial technology startup, which is housed within the portfolio of companies tied to billionaire Dan Gilbert, will also be used to further its product innovation efforts, expand relationships with banking institutions and grow its head count with a focus on product development and customer success, the company said Thursday in a news release.
Autobooks works directly with banks and credit unions to enable more online payment solutions for small businesses.
This latest fundraising round was led by Philadelphia-based venture capital fund MissionOG Ventures, and included participation from Renaissance Venture Capital in Ann Arbor, Detroit Venture Partners, Draper Triangle and TD Bank Group.
“The ability to receive payments online is vital for today’s small business,” Rob Metzger, general partner at MissionOG, said in the release. “As we analyzed the market, we were impressed with Autobooks’ unique ability to successfully partner with financial institutions. These partnerships help redefine integrated receivables, bringing immediate and significant value to treasury and cash-management services and the small businesses who most need the help.”
In 2018 Autobooks raised $10 million.
The new $25 million round comes after the finish of what the company has described as a record year in 2020. The company said it counts a total of 86 financial institutions within its customer portfolio, up from 36 at the end of 2019.
Autobooks CEO Steve Robert said the company has nearly 75 employees at this time, and looks to grow to about 115 by year’s end. He declined to share a revenue figure or valuation at which the Series B was raised.
Robert told Crain’s in an interview Thursday that the new funding helps the company begin to stand out more, especially in the red-hot fintech sector, as it has continued to accumulate follow-on funding.
“(We) start to separate (ourselves) from some of the earlier-stage, riskier businesses,” said Robert. “We become a lot safer to work with.”
Financial technology startups like Autobooks have been on a tear in recent years when it comes to hauling in venture capital dollars.
Data from Pitchbook found that fintech companies raised $41.7 billion last year, the second-largest annual total of the past decade, according to the report.
While the company finds itself in an enviable position of growing in a hot sector, several exit options could present themselves, but nothing is on the table at the moment, according to Robert.
“There is zero interest in a transaction or an exit or a liquidity event,” said Robert. “Many of the folks joining this business have had prior successes. We’re very interested in building a large growth-oriented business.”
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