TeamPay adds $5M to its Series A at Higher Valuation after Growing ARR 320% Growth Since the Round
What do you call the grey area between a Series A and a Series B? In 2020, when the money is taken on opportunistically, you call it a Series A-1 extension, according to Teampay. Even if the new capital was raised at a new, higher valuation.
At least that’s what Teampay CEO Andrew Hoag has done with his company’s new $5 million investment, adding it onto its September, 2019-era Series A. TechCrunch covered that round, and the company’s $4 million seed round in 2018, keeping tabs on the corporate spend-management company as it grows.
Indeed, Teampay has posted big growth since its Series A was announced, pushing its annual recurring revenue (ARR) up by 320% and its total spend managed up by 800%. The first number implies that it has managed to monetize well as its usage, the second number, has spiked.
Teampay, Hoag said in an interview, wants to help companies control their bank accounts. This has gotten harder in 2020, as companies went from having an office with many employees to many employees in home offices. The rising complexity of running companies in the aftermath of COVID-19 and its economic disruptions has been a boon for the startup, with Teampay seeing its sales cycle cut in half, the CEO said, and bigger companies coming to its door, looking for help.