CapitalOS: Spend Management Infrastructure Company Raises $39 Million

By Amit Chowdhry ● Nov 28, 2023

CapitalOS – a fintech company providing a first-of-its-kind spend management infrastructure for B2B platforms, announced today its $39 million across equity funding and debt financing. This funding round was led by Group 11 with participation from Upper90, Vera Equity, Slow Ventures and established angel investors, which include Huey Lin (Affirm Founding-COO), Tomer London (Gusto CPO), Michael Sindicich (EVP, GM Navan Expense), Yin Wu (CEO, Pulley) and Oz Alon (HoneyBook CEO) along with accomplished product builders and operators from Stripe, Navan, Venmo, Houzz, etc.

Designed by a team of industry veterans from tech companies like Stripe, Microsoft, Lyft, and Tipalti, the
company has pioneered embedded spend management, bypassing the need for a costly multi-year
commitment typically associated with in-house development. After being integrated, CapitalOS handles the
entire user journey, from onboarding to ongoing card management.

Even though spend management software is the standard for saving time and money for most mid-market and enterprise companies, it remained relatively inaccessible for small businesses. And they often lack the resources and specialization to develop it internally.

Utilizing CapitalOS, platforms can focus on their core competency while CapitalOS carries the
brunt of managing risk, underwriting, compliance, debt, and much more. And in doing so, B2B platforms can
stand out to the small businesses they service by providing a product that saves them time and money
while being far superior to legacy solutions. Furthermore, platforms can also establish a new revenue
stream, increase user retention, and unlock access to business spending data.

Launched by Nir Dremer and Matan Goldschmiedt, the funding raised will continue scaling the
business and support the growth of its expanding network of software platform partners.
CapitalOS is currently available to thousands of businesses through platforms such as Intuit QuickBooks, Workiz & Roll Credits.

KEY QUOTES:

“Managing expenses is crucial for small businesses, yet many struggle to manage expenses without
necessary resources, resulting in wasted time and money. We designed a solution that requires just one API call, and eliminates the burden on platforms to handle compliance, risk, underwriting, and capital.”

– Nir Dremer, Co-Founder and CEO of CapitalOS

“Using CapitalOS, we were able to launch to production in less than a week. CapitalOS allows us to strengthen our core financial services capabilities at a fraction of the cost compared to in-house development.”

– Yosi Rahimi, VP, Strategy & Operations at Workiz

“There are 33 million small businesses (in the US), and the majority of them are not handling spend
efficiently. The platforms these businesses use daily are uniquely positioned to help them take control
over their spending. CapitalOS shifts the paradigm by enabling platforms to launch spend management at a fraction of the cost and with a direct impact on the small businesses bottom line.”

– Dovi Frances, Founding GP of Group 11

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