Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 6)

Sramana Mitra: It’s not a big buyer whose problem you’re solving. You’re solving the small business’ problem of cash flow. A small business working with a large buyer with not very favorable terms puts the small business at the mercy of the buyer.

In this case, just inserting Fundbox or equivalent speeds up the working capital issue for small businesses, and the large buyer has absolutely nothing to lose by introducing that.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 5)

Sramana Mitra: Why are you not involved in transactions where it’s a large company buying from a small company?

Eyal Shinar: Because of the point you just raised. Interestingly enough, some larger companies, not as big as Apple, reach out to Fundbox as a seller. We already have agreements in place, but it’s not public yet. They’re asking us to be the provider of terms of their business buyers.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 4)

Sramana Mitra: What percentage of sellers are working with you in this mode? What is the penetration of this kind of technology in the B2B sellers’ world? What percentage of the sellers in the world are working with Fundbox or competitors today?

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 3)

Sramana Mitra: Can you walk me through a use case? Let’s say a small business applies to Fundbox for financing. Do you call it financing or do you call it something else?

Eyal Shinar: There are a few gateways to the product. It depends on what you’re solving. I would divide it into two buckets. One bucket would be the B2B sellers or the vendors. They use Fundbox Pay.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 2)

Eyal Shinar: Your distinction between Kabbage and Ondeck, and Amex and Intuit is accurate. But I think it’s missing the big picture. You don’t need credit as a seller if you’re getting paid immediately. You need much less working capital than before. That’s what we’re trying to solve. We’re allowing the seller to get paid instantly.

Sramana Mitra: Let me get one thing sorted out here. Are you talking about your focus being receivable financing?

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 1)

Small business credit and receivables financing are going through enormous changes in the FinTech era. This interview delves into some complex issues. Fascinating discussion!

Sramana Mitra: Let’s start by introducing our audience to yourself as well as to Fundbox. We’ve had Fundbox before. Let’s do a quick recap.

Eyal Shinar: I’m the Co-Founder and CEO of Fundbox. There are many ways to describe a company but the most precise and a very high level way is, we’re building the world’s first, and hopefully the largest, B2B payment and credit network.

Thought Leaders in Financial Technology: Terrence McCrossan, CEO of Oversight Systems (Part 3)

Sramana Mitra: When you look around, what are the open problems that you see from your vantage point? I ask this question to all the thought leaders that we bring on to this series.

You’re doing one company but when you look around, you see other problems that if you were starting out, that may be something you would be tackling. What are such problems that you see around that you may want to point our community of entrepreneurs towards?

Thought Leaders in Financial Technology: Terrence McCrossan, CEO of Oversight Systems (Part 2)

Sramana Mitra: When you look at Fortune 500 or Global 2000 customer base, what is the percentage of penetration of this kind of technology?

Terrence McCrossan: Gartner’s data is probably the best proxy for market penetration. They estimate that just 5% of large organizations are using automated analysis tools as part of their audit process. It’s a marketplace that has significant growth.