C2FO is a business that specializes in financial technology. Technicians working for the business created the world’s first working capital market. This is a unique company within the fintech industry that is worth taking a second look at. We investigated the history along with the goals of the company, it’s progress and founder to bring you these 20 things that you probably didn’t know about C2FO.
1. C2FO was founded in 2008
As C2FO moves into the year 2020 it is entering its 12th year of operations. The business was founded by Sandy Kemper in January of 2008. Kemper was previously the CEO of UMB Financial Corporation and he brings with him years of experience in the financial arena.
2. The name changed for marketing purposes
C2FO is the new name that the business is currently operating under. Previously, it was legally named Pollenware. Kemper was obliged to change the name of Pollenware when he received customer feedback that gave him an idea for a more suitable and descriptive name. Pollenware delivered collaborative and cash flow optimization which Kemper broke down into the acronym C2FO. This was a wise marketing move because a name that is highly descriptive of what a business delivers is one of the best possible marketing strategies.
3. C2FO branches out internationally
The main headquarters for C2FO is in Leawood, Kansas in the United States. There are offices opened and operating in several major cities throughout the world. Within the United States, there are locations in San Francisco, California, and Seattle, Washington. In Asia, office locations are open in Hong Kong and in Singapore. In Europe, there is an office in Frankfurt, Germany, and in London, England. There is also an office in Mumbai. The business has expanded quickly within the 11 years that it has been in operation. This is an impressive rate of growth for any fintech company.
4. It took 2 years for the first market clearing
After C2FO became official in 2008, it was two years before the first market-clearing happened in 2010. This is when the first major showing for C2FO took place and it drew investors’ interest from all over the globe. C2FO specializes in creating a working capital flow volume and since this time there have been over 912 million days of accelerated payment achieved which is a milestone.
5. C2FO is a B2B organization
For those of you who are not familiar with how C2FO works, it creates a match between accounts receivable and accounts payable for businesses to increase the efficiency of the working capital provided between the buyers and suppliers within the business world. There are zero financial risks involved in the seamless system that it provides.
6. C2FO is good for their clients’ bottom line
One of the best things about C2FO’s financial technology is that it helps their customers (companies), to increase their gross margin and EBITA in order to earn higher returns on short-term cash. It is also good for the financial well being of their supply chains. C2FO’s products are good for everyone involved in the processes and it streamlines AR and AP processes for all stakeholders.
7. C2FO has strong financial backing
We were impressed with the number of funding rounds that C2FO has held successfully. So far the company has raised $397.7 million in venture capital backing for growth and expansion. This is a late-stage company that has held seven funding rounds. The first round of Series A funding closed on March 8, 2011, bringing in $3.6 million. A round of Series B funding closed on September 5, 2012, bringing in $9.1 million. On July 23, 2013, a Series C round brought in $18 million followed by a Series D round on August 14, 2014, for $27 million and a year later on August f11, 2015, a Series E round that generated an additional $40 million. A Series F round concluded on February 27, 2018, bringing in $100 million, and on August 7, 2019, the most recent Series G round of funding raised another $200 million in venture capital.
8. CF20 has 5 lead investors
There are numerous investors who wanted to get on board with CF20 because of its high potential for profitability. Some of the largest venture capital firms have led the rounds with multiple other investors joining in. CF20 has firm financial backers from some of the larger players in the financial world.
9. An international assortment of investment companies support CF20
The impressive parade of lead investors for the funding rounds of C2FO includes the SoftBank Vision Fund which is a venture capital firm that specializes in late-stage startup investments. It is based in London, England. Allianz X is a venture capital group that makes investments in companies working with digital grown, and most of their investments are in the insurance industry. It is based in Munchen, Bayern, Germany. Temasek Holdings is a venture capital firm that is based in the Central Region of Singapore. It maintains a focus on bringing sustainable long-term returns. This company was acquired by Keppel Infrastructure Trust. Mithril Capital Management is based in San Francisco, California in the USA. This company invests in businesses in finance, macroeconomics, and technology. The fifth lead investor in C2FO is Union Square Ventures. This is a venture capital firm that invests in startup financing, early-stage, and late-stage companies. It is based in New York, New York, USA.
10. C2FO has an impressive download history
C2FO offers a range of downloadable software applications for their customers. The statistics show that approximately 79 downloads take place per month and this reflects growth of 6.76% in the online business that is conducted. It is available through Google Play, Itunes Connect
11. C2FO acquired Priority Vendor
As a part of its strategic plan for growth and expansion, C2FO acquired the Priority Vendor company. The business is based in Noida, Uttar, Pradesh, India. It is a private financial services company that was founded in 2014. It provides working capital solutions for corporations as well as for their suppliers. This company serves businesses that operate within the transportation, packing material, and raw material industries. Priority Vendor received Series A funding and it employs between 101-250 workers with operations and headquarters within the Asia Pacific regions. It now functions under the umbrella of C2FO as a subsidiary company.
12. C2FO customers can bypass banks
C2FO is a company that builds technology, but it is also a financial company that provides its customer base with the tools that allow them to manage risk increase their working capital and improve their financial metrics without the necessity for using banks. In addition to offering factoring products, and early payment services, the company also provides a revolving line of credit.
13. C2FO is a privately held company
C2FO has not filed for an Initial Public Offering because there has been no need to go public to raise the funds necessary for startup, development, growth, and expansion. Although it would be an excellent candidate for going public, and there would no doubt be tons of investors willing to buy stock, there are plenty of large investment firms willing to place their bets on the success of C2FO. With such amazing financial backing and support, it is not likely that you will see this company go public at any time in the near future.
14. The United States offices have the most employees
C2FO has offices in several different cities throughout the world, but the majority of them are located in the United States. There are 268 in the United States with 222 of them from the Kansas City, Missouri area. In the United Kingdom, there are 39, 35 in India, 19 in Mumbai/India, 18 in China, 17 in Bristol located in the United Kingdom, 13 in London, England, 9 in New Delhi, India, 9 in New York City, 8 in Lawrence Kansas 7 in Suzhou, Jiangsu, China, 6 in Beijing City, China, 4 in Seattle, Washington, and 3 in Hong Kong.
15. Most employees at C2FO have a college education
We were impressed at how meticulous the HR department of C2FO is. When we visited the LinkedIn page for the company, we found a breakdown of the employees and their educational histories. 40 studied at the University of Kansas, 22 from Kansas State University, 19 from the University of Missouri-Kansas City, 10 from the University of Missouri-Columbia, 8 from the University of Central Missouri, 7 from Baker University, 6 from Northwest Missouri State University, 6 from Rockhurst University, 6 from Truman State University, 5 each from Northwestern University, the University of Kansas School of Business, and Rockhurst High School, and 4 each from the University of Iowa, Benedictine College, and Johnson County Community College. Just 5 employees for C2FO based in the United States stopped their education at the high school level.
16. C2FO uses advanced technology
The technology that C2FO programs and applications operated from are complex, but it is simple and straightforward to use. It works through programmed proprietary market algorithms to route each order and match them. Although the technology behind the system is complicated you would never know it because of how well it works.
17. C2FO is a working capital solution for businesses that is affordable
C2FO does not charge any fees to the suppliers who make the decision to participate in the AR/AP services. These companies are also given the opportunity to make requests for cash flow so they can receive the established form of payment from their buyers that they have always used. The only difference is that it is much faster than tradition methods. In many cases, this service costs much less in rates than borrowing the money from a bank or other lending institution would.
18. The customer service is exceptional
One of the aspects of C2FO that has led to its amazing success is that the customers are pleased with the services that they receive. The company provides some of the best customer service options that we’ve seen. It is comprised of a global team of staff members who offer multilingual assistance. They are available 24 hours a day 7days a week. Customers can contact customer service at C2FO by email, chat, or by telephone.
Suppliers have a high satisfaction rating
The apps that C2FO provides change the way that suppliers receive the money that is owed to them by the buyers. It’s simple to request a payment and receive it quickly. The C2FO company offers each supplier free participation in a system that delivers high with a market-based approach to working capital and according to a Net Promoter Score, C2FO has received a score of 65. A score of 50 and over indicates a “world-class” rating and C2FO’s score far exceeds this number with 91% of the suppliers stating that they would recommend the app to others.
19. C2FO establishes a money-saving middle ground
Another aspect of C2FO services that buyers find intriguing is the fact that using the app means that they get a discount on the products that they are purchasing from the suppliers. This is a middle ground that makes the app appealing to buyers as they are making the purchase of the application. Everybody ends up winning when the system is used.
20. C2FO is a future unicorn company
Unicorn status is achieved when a company reaches the billion-dollar valuation mark. This is an exclusive group of businesses.
According to a report issued by the AIM Institute, C2FO’s last round of fundraising brought in an additional $200 million in venture capital. In 2015, the company’s valuation was over $800 billion. It recently exceeded the $1 billion valuation mark and joined the elite class referred to as unicorn. This was a remarkable milestone in the success of the company and it isn’t showing any signs of slowing in terms of growth and productivity.