According to an official press release, Crowdz, a Silicon Valley-based fintech solutions provider has received a major boost after Barclays Bank led a crowdfunding series to raise capital for the development of a Blockchain-powered invoicing platform.
Other contributors in the first series of the crowdfunding round include BOLD Capital Partners, First Derivatives, Techstars Ventures, and TFX Capital Partners.
The participants have been able to raise $5.5 million that will cover the costs of sales, marketing, and product development.
The Project Is Creating A Pioneer Global Invoice Exchange
The global receivables market is estimated to have an annual volume of $9 trillion. Hence, Crowdz intends to revolutionize this market by moving its operations to Blockchain that has been proven to be ideal for efficiency, cost-cutting, and scaling industrial use-cases.
The Blockchain platform will be a business-to-business (B2B) payment gateway that will be allowing enterprises to transact invoicing on Digital Ledgers.
The PR is saying that the benefits of the platform will include shortening of the cash conversion cycle by streamlining reconciliation of payments, invoices, and orders to specific companies on the platform.
Further, another benefit of the DLT Invoice Exchange platform is that users will be able to present invoices to banks and investors for financing without having to deal with laborious paper works. This is set to cut time and costs for invoicing.
The Project Will Expand The Receivables Market
According to the co-founder and CEO of Crowdz, Payson E. Johnston, the traditional B2B commerce is prohibitive to 75% of companies that participate in invoicing services. He says that Crowdz’s mission is to ensure that small and midsize enterprises (SMEs) have access to a platform that offers them a consistent cashflow solution for their going-concerns.
Hence, the participation of Barclays, BOLD and other investors in the crowdfunding deal will play a vital role in enabling Crowdz to achieve its roadmap.
The Industry Is Set For A Phenomenon Disruption
Teymour Boutros-Ghali, one of the managing partners of BOLD Capital, says that the $9 trillion industry is “ripe for disruption” and Crowdz is committed to turning this vision to reality.
Kevin Hopkins, Crowdz’s chief strategist, and an ex-White House economist, also believes that a wave of change is about to sweep the industry as the industry has barely evolved in the last 500 years as most invoicing remains to be manual.
Kevin further says that handling of 400 billion invoices on an annual basis is unsustainable. Due to lack of supporting technology, SMEs have no option but to contend with 90-120 days invoice settling windows which has adverse effects on the global economy. Therefore, the world will readily adopt a cutting-edge technology that can offer better solutions such as the Invoice Exchange from Crowdz.
Hence the Invoice Exchange Blockchain will totally overhaul B2B payments as the Barclays Chief Technology and Innovation Officer, John Stecher, adds. He further reveals that the bank is looking forward to contributing in future crowdfunding series to actualize future fork projects.