Tabs, an Accounts Receivable (AR) platform for B2B businesses, announced a $7 million seed funding round led by Lightspeed Venture Partners. This round raises the company’s total funding to $12 million, including a pre-seed round from Primary Ventures.
This funding round will drive Tabs’ mission to transform B2B AR processes at a critical time when most businesses struggle to collect cash and find profitability.
At the center of Tabs’ solution is Tabs AI, a proprietary platform built to understand and extract B2B contractual elements. And using this data, Tabs automates contract ingestion, invoicing, and payments, streamlining a company’s accounting process.
Tabs’ customers, like Findigs, Pinata, and Inspiren, report 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 such as pricing changes, usage models, and greater sales flexibility.
KEY QUOTES:
“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. 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.”
– Sebastian Hart, Director of Finance & Business Development at Findigs
“Tabs is tackling a massive problem in B2B. 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.”
– Justin Overdorff, Partner at Lightspeed
“With this funding, Tabs is set to revolutionize AR and how finance understands the customer. 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.”
– Ali Hussain, Co-founder and CEO of Tabs
