C2FO is a financial technology company and the creator of the first market for working capital. C2FO operates the C2FO working capital market.
The company was founded in January 2008 by Sandy Kemper, former CEO of UMB Financial Corporation. C2FO was previously known as Pollenware. The name changed to C2FO based on customer feedback that the market delivered collaborative cash flow optimization or C2FO, an acronym for what the market provides.
The first C2FO market clearing took place in 2010, and received backing of venture firm Union Square Ventures, known for investing in companies like Twitter and Zynga. In Q2 2015, C2FO completed a $40MM round of equity funding led by Temasek, a global investment company based in Singapore. Temasek joined a list of C2FO investors including Union Square Ventures, Summerhill Venture Partners, OPENAIR Equity Partners, Mithril Capital, and Tiger Global. In Q1 2016, Citi Ventures became the newest investor.
C2FO posted its first $1 billion quarter in the fourth quarter of 2013. It experienced growth during 2014, handling $2.9 billion worth of transactions in the fourth quarter of 2014, with $1.4 billion of that happening in December. In September 2015, C2FO announced it had reached the $1 billion-a-week milestone for the amount of working capital trading on its platform.
Since its first transaction in May 2010, C2FO has generated more than $100 billion in working capital flow volume and more than 355 million days of accelerated payment.
Video C2FO
Working capital marketplace
C2FO provides a marketplace for companies to deploy and secure working capital. Using the market, suppliers can request early payment from buyers on approved invoices. If early payment is awarded the funds are facilitated directly from the buyer to the supplier.
C2FO enables collaboration between buyers and suppliers in a real-time marketplace to discover the price for early payment that's profitable for both.
C2FO does not process payment or hold funds. The market is operated in an online environment with no fees or contracts for suppliers. C2FO currently operates in multiple currencies and is available in all countries. The market is a direct exchange between existing customers with no intermediaries or financial institutions, so it is free from regulation.
C2FO offers dynamic discounting solution with flexibility across many variables, including the rate that is desirable for the supplier, and which invoices to be paid earlier. C2FO is unique in the industry as it offers a working capital marketplace where businesses upload invoices with a target return, while suppliers request early payment of their invoices at a rate of their choosing from all of their participating customers on a single platform.
Maps C2FO
In the media
CNBC interviewed Chris Dark, President International of C2FO, on their Shake It Up program and asked him to explain how C2FO functions. Dark discussed C2FO customers such as Costco, Amazon and Pfizer.
In May, 2015, Karen Mills, Senior Fellow with Harvard Business School composed an article discussing the importance of small businesses in America and the three things they need to thrive, including access to working capital. In the article, Mills cited C2FO as an innovative new entrant in accounts receivable lending.
City A.M. interviewed Colin Sharp, SVP EMEA for C2FO, and discussed C2FO's approach to invoice financing. Sharp has also been interviewed by Raconteur to discuss pre-Brexit planning.
Andrew Burns, director of business development at C2FO spoke with Euromoney to discuss the adjusting relationship between corporates and the banks to help them both understand the current uncertainty.
Global Treasury Intelligence estimates "trapped cash" total around US$2.5 trillion in assets. According to the 2016 Working Capital Outlook Survey, SMEs surveyed indicated that access to working capital would allow them to purchase more inventory or equipment (29%), invest in new technology (12%), and invest in employees through adding jobs or increasing wages (12%).
Sean Van Gundy, Managing Director, Working Capital Advisory for C2FO, shareed his perspective on the biggest opportunity in payments with Payments Journal.
In 2011, Costco, the world's third largest retailer, found many of its suppliers were struggling to secure loans after the 2008 financial crisis. At the same time, thanks to rock-bottom interest rates - another 2008 hangover - Costco earned minimal interest on any cash it had. Thus began a 5+ year partnership between C2FO and Costco which has been featured as a Case Study in Raconteur.
Surveys and Research
The Supplier Finance Survey, fielded by C2FO, polled leading UK corporate treasurers in Q4 2015, and shows that most treasury functions are looking into the value of accelerating payment to suppliers. The majority (71%) of corporate treasurers believe invoice discounting can act as a means for the Treasury to provide tangible value add, according to the research. Suppliers are getting paid late across the globe, but it's a particular problem in the U.K., where late payments have led to high-profile political action and lawsuits. The research also found that 96 percent of treasurers agreed that the role of supplier financing services is on the rise.
In Q3 2016, C2FO conducted a follow up Working Capital Outlook survey to examine the preferences of more than 1,800 SMEs in the United States and in the UK, Germany, France and Italy (EMEA) for improving working capital efficiency. It gauged respondents' sentiment on trends associated with economic and political factors, financing, working capital deployment and supplier-buyer relationships. The majority of SMEs (55%) found cash flow as the biggest obstacle for business growth and over 40% indicated an increase in working capital needs compared to last year. Meanwhile, more than a quarter (29%) of respondents had no or limited ability to borrow. This research also concluded SMEs are adopting a wide variety of sources to finance themselves including traditional banking options like credit lines and asset-back loans which have increased in popularity since 2015, especially for larger SMEs. Invoice financing solutions (ranging from supply chain financing, factoring and invoice discounting) are providing funding to almost 20% of the surveyed SMEs and 18% are using peer-to-peer lending.
Top procurement retail executives assert that the application of supply chain technology offers a significant advantage over competitors, according to C2FO's 2017 Retail Pulse Survey, as provided to Supply Chain Dive.
Recognition and awards
In early 2015, C2FO was named to Global Finance magazine's 'The Innovators 2015' list and received the 2015 Impact Award, from the American Cities Business Journals.
In December 2015, C2FO was recognized by Forbes as one of the most important financial tech companies on the magazine's 2015 Forbes Fintech 50 List. After considering more than 300 fintech companies, C2FO was recognized by for its ability to help solve the Liquidity Paradox, through its unique marketplace model. C2FO was also the only company listed from the dynamic discounting category.
H2 Ventures and KPMG also named C2FO to their 2015 Fintech 100 list of startups from around the world who are taking advantage of technology to revolutionize the industry by offering fresh, new, disruptive ideas.
In November 2016, C2FO was again named to the Forbes Fintech 50 list. Only around half of the firms listed made the list two years in a row.
The Supply Chain Finance Community has named C2FO among the six shortlisted vendors in its 'Open RFI' project, launched on behalf of a group of Dutch corporations.
Global footprint
C2FO is headquartered in Fairway, Kansas. The company has offices around the globe.
- Frankfurt
- Hong Kong
- London
- Mumbai
- San Francisco
- Seattle
- Singapore
References
External links
- Official website
Source of article : Wikipedia
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