Anchor raises USD $20m to transform SMB invoice process

Anchor has successfully raised USD $20 million in a Series A funding round, led by Mosaic General Partnership and Oren Zeev of Zeev Ventures. The funds will be used to expand the team, increase U.S. market growth, and bolster strategic partnerships. This financial boost comes in the wake of the company's significant growth of over 500% in 2024.

Anchor's platform addresses the prevalent issue of overdue invoices and late payments facing small and medium-sized businesses (SMBs) in the U.S. Current figures indicate that 50% of U.S. B2B invoices are overdue and 60% of SMBs encounter payment delays, impacting their cash flow and financial health. Anchor offers a fully integrated, digital-first solution designed to streamline the process of proposals, agreements, invoicing, and payments.

The platform eliminates outdated manual workflows by introducing digitally native and interactive proposals and agreements. This approach reduces the typical 50 steps found in traditional workflows, which often lead to errors and inefficiencies. As a result, Anchor's users have reported over 30% increases in profits, a drop in revenue losses from more than 5% to under 1%, and a significant decrease in the time required to sign agreements—from over 45 days to less than 24 hours.

Rom Lakritz, CEO and Co-Founder of Anchor, commented on the solution Anchor provides, stating, "Small businesses are the beating heart of the economy, and yet too many are becoming casualties to the unnecessary manual work associated with invoicing and payments. Existing solutions can't address the current payment challenges because they are shackled to the limiting legacy of the non-dynamic PDF era. Anchor brings a truly innovative approach, leaving behind outdated processes. We are fortunate to have industry leaders as investors supporting us on this journey, as we continue to deliver value, not just to businesses but to the broader economy they are part of."

Anchor's platform primarily serves professional service businesses in the U.S., with a marked focus on accounting, bookkeeping, and tax firms. It operates on a unique pricing model, offering a service that is free to use with only a flat USD $5 fee per transaction, foregoing the traditional percentage-based fee structure. This model aims to provide a fairer payment management experience, only incurring fees when customers receive payment.

According to Sam Landman from Mosaic General Partnerships, "By transforming customer operations away from file-based point solutions to a digital-based end-to-end system, Anchor is radically improving customer efficiency, resulting in dramatic expense reduction, revenue growth and cash flow improvement. Anchor's solution will materially improve the survival rates of small and medium businesses, driving economic growth on a broader scale. After witnessing their exponential growth, and hearing the intense customer love for the product, we couldn't be more delighted to join Anchor in order to fully realize their vision."

Anchor's substantial growth in 2024 underpins its capacity to assist myriad businesses in tackling operational inefficiencies. By fundamentally altering the management of business transactions, Anchor aims to support all businesses, regardless of size, in achieving prosperity.