The intent of the round is to help SnapAP on the first stage of its planned $2 million seed stage round.
SnapAP works on solutions to streamline the Procurement to Payment workflow for mid-tier and enterprise market clients.
Because of the pandemic and geographical location challenges, the negotiations with the investors and other parts of the deal were conducted remotely through the phone, email and online conferencing tools.
“This funding milestone is exciting and worth celebrating, but at same time it is only another step within my overall long-term vision of SnapAP becoming a leading player for a global market that is literally valued in the trillions of dollars for annual spending,” said JD Drapeau, SnapAP’s founding CEO, the release states.
Following this seed round, the company intends to announce several new channel sales distribution partnerships which are in the process of being finalized. Also, the Israel investors are in the process of leveraging connections in order to have SnapAP adopted by numerous high-profile clients in the banking and manufacturing worlds overseas, the release says.
SnapAP was founded in January 2019 by Drapeau, and the press release says it now claims over 50,000 users from both the buyer and supplier sides.
Accounts payable departments were in trouble even before the pandemic dealt a blow to their in-person back office processing, with invoicing errors and external phishing fraud roiling departments everywhere, PYMNTS writes. Because of the myriad issues, experts have urged companies to adopt automated technology, which can help detect the aforementioned fraud and keep funds moving smoothly.
Toni Tornell, controller at language software service provider United Language Group, said the AP automation tools can help with preventing human error and keep disruptions from occurring in contractor payouts.