Total amount raised
$417.5 Millions
Latest funding date
Location
Divvy has successfully raised multiple rounds of funding, culminating in its acquisition by BILL for $2.5 billion. The platform offers businesses tools to manage payments, build strategic budgets, and eliminate expense reports.
Keep reading to explore the intricacies of Divvy's fundraising journey and the investors backing this innovative platform.
What Is Divvy?
Divvy, founded in 2016 by Alex Bean and Blake Murray, is headquartered in Draper, Utah. The platform helps businesses manage payments, build strategic budgets, and eliminate expense reports. With a workforce of 251-500 employees, Divvy offers real-time visibility into company spending.
How Much Funding Has Divvy Raised?
- Seed Round
- Amount Raised: $7M
- Date: Dec 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of Divvy's platform and bring their vision to life.
- Series A
- Amount Raised: $10.5M
- Date: May 2018
- Lead Investors: Pelion Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series B
- Amount Raised: $35M
- Date: Jul 2018
- Lead Investors: Insight Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's capabilities.
- Series C
- Amount Raised: $200M
- Date: Apr 2019
- Lead Investors: New Enterprise Associates
- Valuation at Round: Approximately $700M
- Motivation Behind the Round: To support rapid growth and expand market reach.
- Series D
- Amount Raised: $165M
- Date: Jan 2021
- Lead Investors: PayPal Ventures, Hanaco, Whale Rock, Schonfeld
- Valuation at Round: $1.6B
- Motivation Behind the Round: To invest heavily in product development and engineering to accelerate Divvy's future roadmap.
Total Amount Raised: $417.5M
Current Valuation: $1.6B
Key Investors
- PayPal Ventures
- Details: PayPal Ventures is the venture capital arm of PayPal, focusing on investing in companies that align with PayPal's mission to democratize financial services. They support innovative companies that are transforming the financial services landscape.
- Investment Focus Areas: FinTech, Payments, Financial Services
- Notable Investments: Divvy, Tala, Acorns
- New Enterprise Associates (NEA)
- Details: New Enterprise Associates (NEA) is a global venture capital firm that invests in technology and healthcare companies at all stages of growth. NEA partners with entrepreneurs to build transformational businesses across multiple sectors.
- Investment Focus Areas: Technology, Healthcare, Software, Consumer, Energy
- Notable Investments: Divvy, Robinhood, Coursera
- Insight Partners
- Details: Insight Partners is a global private equity and venture capital firm that invests in high-growth technology and software companies. They provide capital and strategic support to help companies scale and achieve their full potential.
- Investment Focus Areas: Software, Internet, Data, FinTech, Cybersecurity
- Notable Investments: Divvy, Shopify, Twitter
- Pelion Venture Partners
- Details: Pelion Venture Partners is a venture capital firm that invests in early-stage technology companies. They focus on partnering with entrepreneurs to build innovative companies in the technology sector.
- Investment Focus Areas: Technology, Software, Internet, Cloud Computing, SaaS
- Notable Investments: Divvy, Red Hat, Cloudflare
- Hanaco
- Details: Hanaco is a venture capital firm that invests in innovative companies across various stages of growth. They focus on supporting companies with disruptive technologies and strong market potential.
- Investment Focus Areas: Technology, Consumer, Healthcare
- Notable Investments: Via, Yotpo, Moovit
What's Next for Divvy?
Divvy stands at the cusp of significant growth opportunities, driven by the increasing demand for streamlined financial management solutions. The company aims to modernize financial processes by integrating credit, vendor, and spend management into a single platform. This approach has already led to a 500% increase in monthly sign-ups since March 2020, indicating a large and growing market.
Future fundraising opportunities appear promising, given Divvy's successful Series D round and a valuation of $1.6 billion. The company plans to invest heavily in product development and engineering, which could attract further investment. However, maintaining rapid growth and scaling operations amidst intense competition from other financial management platforms will be challenging.
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