The Receivables Exchange Closes $17 Million in Venture Capital Funding
FOR IMMEDIATE RELEASE: January 29, 2010
Contact Information: Darren Alberti
NEW ORLEANS — A New Orleans-based entrepreneurial firm has secured $17 million in Series C investment financing, led by a new commitment from Boston’s Bain Capital Ventures.
The Receivables Exchange, which launched a proprietary, real-time online trading platform for receivables financing in 2008, has also drawn re-investment from Redpoint Ventures of Menlo Park, Calif. and Prism Ventureworks of Needham, Mass.
The firm’s online marketplace provides a valuable financial tool for small and medium-sized businesses who seek quick access to working capital.
“The Receivables Exchange is a game-changing innovation that we believe, based on our experience with hundreds of portfolio companies, can revolutionize the way businesses manage their cash flow and fund their day-to-day operations,” says Jeffrey Schwartz, Managing Director of Bain Capital Ventures.
As a one-time New Orleans startup which has earned commitments from top venture capital firms in Boston and Silicon Valley, The Receivables Exchange exemplifies both the diversification of the region’s economy and the national recognition which has accompanied the transformation.
“Today is an important day not only for The Receivables Exchange, but for the entire region and state,” says Michael Hecht, President & CEO of Greater New Orleans, Inc. “Today is the day when the entire country has taken notice of the entrepreneurial revolution that is occurring in the New Orleans region. If we continue in this direction, we will soon be known as a hotbed of innovation and growth, and the result will be more investment, more companies and more jobs.”
Favorable business conditions in the Greater New Orleans region have facilitated the firm’s growth, according to The Receivables Exchange President and Co-Founder Nic Perkin. “When considering where to launch and grow The Receivables Exchange, New Orleans won out over several cities because of its quality of life factors, attractive financial incentives, and other competitive advantages,” says Perkin. “New Orleans’ globally recognized brand and its cost of living have helped us recruit and maintain talented staff, while the cost of starting and running a business has helped us operate at a fraction of the cost of other major cities.”
The new venture capital funding will allow The Receivables Exchange to more than double its current workforce in New Orleans over the next three years. The firm anticipates adding at least 60 new jobs with an average annual salary of $70,000.
To provide additional financing for the firm’s growth, Louisiana Economic Development reports that The Receivables Exchange will utilize the state’s Digital Interactive Media Tax Credit, which provides up to a best-in-class 35 percent credit on qualified expenditures, and also its Quality Jobs program, which offers a cash rebate to companies who create well-paying jobs and promote economic development. Greater New Orleans, Inc. is assisting The Receivables Exchange with these incentives, and is also providing marketing support.
To learn more about The Receivables Exchange, click here.
