FInTech BasicBlock closes on $78 million to reshape trucking finance and expand its payment platform
Updated: Jan 26, 2022
FinTech Firm Provides Necessary Capital to Keep Freight Moving
BasicBlock Inc., a financial technology company that is reshaping financing options for the trucking industry, today announced a $78 million debt and equity raise, to fuel expanded services, client support and employment opportunities throughout the U.S. Lead investors and lenders in the round include Autotech Ventures, Clear Haven Capital Management, Emergent Ventures, and Nelnet alongside continued investment from Revolution's Rise of the Rest Seed Fund, SaaS Ventures and TNT Ventures.
BasicBlock launched in 2018 as a simple trucking document capture tool that allowed drivers to scan and send load documents at low rates. The company has evolved to become a complete payment platform for carriers nationwide that ensures same-day payment and exceptional customer service. The influx of capital will allow BasicBlock to continue focusing on factoring while adding and expanding services to help carriers grow their fleets.
"Prior to starting the company, I spent more than six months traveling the country with truckers to truly understand the business. 96% of commercial trucking companies in the U.S. have less than six trucks, and one of their biggest pain points is access to capital," said Taylor Monks, BasicBlock CEO and co-founder. "We launched BasicBlock with a freight factoring app to enable drivers to get paid as quickly as possible and have evolved to provide critical working capital to fleets who cannot secure it through traditional financial institutions."
As BasicBlock grows, a portion of the funds will be used to expand company operations to Chicago.
"Since November, BasicBlock has seen a 50% increase in drivers it serves, and its factoring volume has increased 60%," said Brett Byman, BasicBlock COO. "Establishing an office in Chicago, one of the leading freight-tech cities in the U.S., will enable us to meet the needs of our increasing national customer base and improve upon our already industry-leading customer service."
Amid global supply chain challenges, the announcement of the raise comes at a time when VC activity in the trucking, transportation, and fintech sectors is at an all-time high. "Freight carriers continue to experience difficulty meeting working capital demands because traditional financial institutions are not meeting the needs of owner operators and small carriers," said Burak Cendek, partner at Autotech Ventures. "BasicBlock has developed a solution to enable this critical piece of the supply chain access to financing in order to compete. Autotech Ventures sees great potential in BasicBlock's current offering as well as its plans for the future."
"It's our mission to provide efficient, scalable financing for early-stage companies, like BasicBlock, who are emerging as leaders in the FinTech industry. We're excited to work with the BasicBlock team as they continue to reshape the freight factoring industry and enable quick, seamless payment for carriers," said Mark Simmer, partner at Clear Haven Capital Management.
About BasicBlock BasicBlock is a financial technology company founded in 2018 in Lincoln, Nebraska, that builds financial products to help independent carriers grow their fleets. BasicBlock has quickly become a leader in freight factoring, and its tools provide streamlined, efficient and cost-effective financial services for fleets and carriers worldwide. The company's mission is to help fleets get paid more quickly and increase access to affordable working capital.
For more information, visit www.basicblock.io.
About Autotech Ventures Autotech Ventures is San Francisco-based early-stage venture capital firm with more than $400M under management to date and a mission to solve the world's ground transport challenges with technology, realizing the next frontier in mobility. It is a team of experienced entrepreneurs, operators, and technologists - investors with a world-class transport community and decades of ground transport experience. With a founder-first philosophy, it invests globally in seed through Series C startups solving ground transport challenges related to connectivity, autonomy, shared-use, electrification, and digitization of enterprise.
For more information, visit www.autotechvc.com
Clear Haven Capital Management Clear Haven Capital Management is a private credit fund manager in New York that provides flexible capital solutions to FinTech companies in seed to late-stage growth cycles. Our partner companies are building the future of financial services in areas such as consumer lending and credit cards, invoice factoring, automotive finance, and SME finance. The firm is led by industry veterans in financial services and is committed to helping its clients succeed by providing efficient capital market solutions needed to scale their companies.
For more information, visit www.clearhavencm.com.