More B2B payments news, this one coming out of the state of Connecticut, which has an investment entity called Connecticut Innovations and established a hub facility called District, located in New Haven. In this announcement through businesswire, we learn about pre-seed funding for CoreChain Technologies, a B2B payments startup that uses a combination of blockchain and cloud technologies to help further evolve businesses beyond manual and hybrid financial processes into more fully digital experiences.
‘CoreChain Technologies, the digital B2B payments network built on blockchain, today announced it has raised $1.25 million in pre-seed funding from investors that include Ulu Ventures, Connecticut Innovations, Bloccelerate VC and New Form Capital. The funding will be used to accelerate enterprise customer adoption and aggressively expand its payments and financing network…..Using enterprise blockchain technology to power B2B payments and financing, CoreChain is streamlining the manual processes and painful reconciliation that has remained static for decades, while mitigating fraud. CoreChain also unlocks lending opportunities to finance the working capital being held in unpaid invoices that age towards settlement due dates, frequently 30 to 120 days in arrears.’
We were able to chat with both Chris Aguas, founder and CEO, and Tom Romary, co-founder and Chief Commercial Officer, in order to gain some further insight into the firm’s capabilities and direction. The company expects to achieve rapid growth and scale through a distribution model that integrates its platform with networks, marketplaces, software companies, other payment providers, and banks.
The CoreChain platform uses both latest-gen tech and existing capabilities. The solution has a blockchain network to provide a common system of record for transactions and documentation, while also allowing final settlement through existing EFT rails. This creates minimal disruption and a faster, easier digital reconciliation process. We were also advised that both access to supply chain finance for working capital optimization and the use of cryptocurrency settlement (stable coins) are in the delivery mix going forward.
“CoreChain exists at the intersection of both future and past payments, with a goal of moving companies towards fully digital, end-to-end financial operations”, advised Aguas.
‘Since its launch in September 2020, CoreChain has processed over $300 million in B2B payments for enterprise buyers, including transactions for channel customers, such as PaymentWorks. Available as a white label platform, CoreChain allows any ERP or Business Process Automation software company or even banks and other payment networks to offer a blockchain-based B2B payments solution to its enterprise clients…..“CoreChain is the future of enterprise payments,” said Thayer Stewart, CEO of PaymentWorks. “CoreChain provides a future-proof platform with immutable transaction data and offers settlement mechanisms that move dramatically faster – and with more conveniences – than legacy systems.” ‘
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
