Insider Brief
- Tabs, an AI-powered Accounts Receivable platform for B2B businesses, announced a $7 million seed funding round led by Lightspeed Venture Partners, increasing their total funding to $12 million.
- This investment aims to enhance B2B AR processes amid challenges such as 55% of B2B invoices in the US being overdue.
- The platform, Tabs AI, automates the extraction and processing of B2B contractual elements, leading to a 40% reduction in time to collect invoices for clients like Findigs, Pinata, and Inspiren, by minimizing manual invoicing and payment tasks.
PRESS RELEASE — NEW YORK/ April 11, 2024— (BUSINESS WIRE) — Tabs, an Accounts Receivable (AR) platform for B2B businesses, today announced a $7 million seed funding round led by Lightspeed Venture Partners. This brings the company’s total amount raised to $12 million, including a pre-seed round from Primary Ventures. The investment will fuel Tabs’ mission to reimagine B2B AR processes at a critical time when most businesses struggle to collect cash and find profitability. In fact, 55% of B2B invoices in the US are currently overdue, tying up trillions in capital for small and medium businesses.
At the heart of Tabs’ solution is Tabs AI, a proprietary platform built to understand and extract B2B contractual elements. Using this information, Tabs then automates contract ingestion, invoicing, and payments, streamlining a company’s accounting process. Tabs’ customers such as Findigs, Pinata, and Inspiren report seeing a 40% reduction in time to collect, mainly driven by avoiding manual work associated with calculating invoices. This also enables them to take advantage of market opportunities with pricing changes, usage models, and greater sales flexibility.
“Tabs is the only software we saw that could fully automate our complex billing and remittances process. Tabs provides all the features we need to manage our receivables in one, easy-to-use platform. Not only are we now saving time on manual tasks, we’re also able to get cash in the door faster,” said Sebastian Hart, Director of Finance & Business Development at Findigs, a digital underwriting platform. “Before Tabs, we spent multiple days doing manual work just to manage and submit invoices each month. With Tabs, we can reduce that work to near zero. Tabs understands the complexity of modern B2B billing and has built the technology to centralize and streamline the entire process. With Tabs, our Finance team is able to spend less time on billing and remittances, and spend more time on work that grows the business.”
“Tabs is tackling a massive problem in B2B,” stated Justin Overdorff, Partner at Lightspeed. “Most B2B businesses have contracts that vary a lot from customer-to-customer. This variability not only bogs down finance teams throughout the customer lifecycle, but starts to stifle overall company growth and flexibility as a business grows. Tabs is a perfect application of AI to understand, structure, and then act on these contracts. With half a billion invoices being sent annually, this is a huge problem to solve.”
“With this funding, Tabs is set to revolutionize AR and how finance understands the customer,” remarked Ali Hussain, Co-founder and CEO of Tabs. “Our platform saves businesses significant time, reduces financial operational risks, and provides advanced board reporting. Longer-term we are focused on delivering company-changing insights to finance leaders that can fundamentally impact a company’s long-term value. Partnering with new investors like Lightspeed and existing investors Primary Ventures allows us to accelerate our growth and enhance our offerings.”
About Tabs
Tabs is an AI-powered accounts receivable platform for B2B businesses. Using the power of AI, Tabs is able to understand and extract elements from even the most complex B2B contracts and then power an automated AR process from contract-to-cash. Growing B2B businesses use Tabs to improve cash flows, streamline operations, and increase business model flexibility. Tabs is based in New York and is funded by top-tier VCs Lightspeed and Primary Ventures. Learn more at tabs.inc.
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