Tradeshift raises $7 Million in Series B of Funding

One of the most recent funding news presents us a successful company which managed to raise external capital in order to expand. Tradeshift is a company which functions as a social network for business. The main service the company provides is a free web based invoicing service. This month, the company managed to raise $7 million in funding from Notion capital, the venture fund of the founders of MessageLabs, a company that has been sold to Symantec for $700 million in 2008. This is the second round of funding for Tradeshift which has previously raised funds from PayPal.

Tradeshift is a company that has been started-up by a group of developers who focused on creating an e-invoicing system for the Danish government. The system they have developed is now used by 50,000 businesses that use the invoicing service in order to send, receive and manage e-invoices, in order to purchase orders and credit notes. Among their clients, we can notice the UK’s National Health Service and the Irish and French governments.

The innovation is that Tradeshift has created this platform in order to allow this type of clients to receive electronic invoices from all of their suppliers. Moreover, the service also allows clients to leave comments and status updates on the invoices they have sent in order for the suppliers not to be forced to call the customers in order to ask them where their money is at that precise moment.

The money received in this second round of funding will be used by Tradeshoft in order to monetize its currently free platform of invoices. This will be achieved by implementing applications and financial services which users can use for a specific fee. The application store is planned to be released later this month. Tradeshift will provide a range of applications like credit checking suppliers, time sheet invoice creation and accounting integration. These applications have been designed and developed by the Tradeshift team.

The fact that makes Tradeshift a powerful company comes from the fact that their electronic invoicing system is entirely web-based. This is the main difference between the products provided by Tradeshift and the other free electronic invoicing systems that can be accessed on the internet. Another important element is that invoicing companies usually charge per transaction.

Tradeshift is a successful company that has been founded in 2009 in Denmark and has developed ever since, reaching now a number of 30 employees. The business continues to be based in Copenhagen, Denmark.