Israeli fintech Anchor is looking to streamline small business B2B transactions, a report says.
Anchor was founded in 2019 by CEO Rom Lakritz, CTO Leeor Aharon and CRO Omry Man. The company has a headquarters in Tel Aviv, and the company’s modus operandi is offering a full-cycle, autonomous, end-to-end billing and payments solution that works for smaller businesses.
Anchor’s platform lets businesses make electronic agreements, which are a more versatile, non-blockchain version of smart contracts.
The agreements reportedly set up the terms and conditions for collaborations, including payments. They also work as the lone source of truth for the automated payments and take in companies’ banking details.
The setup allows companies to issue, pay and reconcile invoices in a fully-automated way, streamlining the entire payment cycle by transforming it from a fraught, problematic process into something easier.
B2B payments are often slower than newer consumer billing efforts, the report notes.
The idea of companies like Anchor is to help turn the cash flow into something more consistent, with relief coming to a previous problem that impeded growth.
Anchor, by doing away with the issue, reportedly lets companies save time rather than focusing too much on contacting clients for payments.
Anchor also reportedly closed a seed funding round for $15 million as of last December.
The round was led by Rapyd Ventures, Entrée Capital, and Tal Ventures, according to a press release on Wednesday.
The money was intended to grow the team beyond its workforce at the time, add new partners and work on new marketing efforts.
“The challenges of billing and collections, which make paying a vendor a hefty process, stem from the human element,” said Lakritz. “If people could trust the invoices they receive from service providers just like they trust machine-generated invoices from their Spotify and Amazon accounts, billing and payments would no longer be a painful process, and cash would easily flow in a market estimated at over $120 trillion annually.”