AvidXchange, a FinTech provider of Accounts Payable and Payment Automation, has completed a USD225 million minority growth financing led by Bain Capital Ventures, with contributions from Foundry Group, NYCA Partners, KeyBank, Square 1 Bank, and TPG Special Situations Partners.
The company becomes a part of Bain Capital Ventures’ portfolio alongside companies such as LinkedIn, Staples and Vonage, as well as technology companies Experian, Billtrust and iPay Technologies. The company’s long-term partner, Financial Technology Partners LP and FTP Securities LLC (“FT Partners”), served as exclusive financial and strategic advisor to AvidXchange in this transaction. AvidXchange intends to invest a significant amount of the funding to hire staff to support its rapid client growth, make select strategic acquisitions, and develop new product technologies to further serve its clients.
“We are thrilled with the investor group that we have assembled for this round as it is a combination of investors who have deep financial technology and payments expertise, as well as robust software and SaaS company knowledge in building multi-billion dollar tech companies,” says Michael Praeger, CEO and Co-Founder of AvidXchange. “We’re excited to have attracted such a distinguished investor group – led by what we believe are the foremost private capital investors in the world with Bain Capital Ventures and TPG Special Situations Partners, along with a leader in software/technology investors with Foundry Group. Joining this group is one of the leading FinTech investor firms in Nyca, one of the most innovative “top 20” banks in the country with KeyBank – plus participation by technology focused business banking leader Square 1 Bank, in addition to partnering with the industry’s top FinTech focused investment bank with FT Partners — it’s an absolutely world-class group that we are proud to have as minority partners.”
“Given our focus at Bain Capital Ventures on financial technology, and high-growth payments companies in particular, AvidXchange has been on our radar for years. We view AxidXchange as leading the evolution of accounts payable automation and business-to-business payments across all verticals,” says Matt Harris (pictured), Managing Director at Bain Capital Ventures. “Soon gone are the days of paper checks, manual entry, and lockboxes. Automation is the wave of the future and AvidXchange is the driving force in one of the largest untapped tech sectors – with AvidXchange we see great growth potential,” continued Harris.
As part of this transaction, AvidXchange adds to its board of directors Matt Harris, Managing Director of Bain Capital Ventures, Brad Feld, Co-Founder of Foundry Group and Techstars, and Hans Morris, Managing Partner at Nyca Partners and former President of Visa.
