Financial Technology Firm “Receive” Secures Funding to Advance Economic Growth for Small Enterprises

Introduction: Fostering Sustainable Economic Development

The financial technology startup Receive has concluded its stealth phase, securing a $4 million seed funding round led by NGVP. This investment increases the company’s total funding to $7.1 million and is supported by entities including Blank Ventures and Insight Partners. The company’s core mission is to address systemic financial barriers faced by Small and Medium-sized Businesses (SMBs), such as delayed revenue access and high capital costs, thereby contributing directly to several United Nations Sustainable Development Goals (SDGs).

Strategic Alignment with Sustainable Development Goals (SDGs)

Receive’s operational model is fundamentally aligned with fostering inclusive and sustainable economic progress. The company’s initiatives make significant contributions to the following SDGs:

• SDG 8: Decent Work and Economic Growth: By providing SMBs with immediate, debt-free access to earned revenue, Receive empowers them to maintain stable operations, reinvest in their growth, and create employment opportunities.
• SDG 9: Industry, Innovation, and Infrastructure: The firm’s platform represents a significant innovation in financial infrastructure, specifically designed to support small-scale enterprises, which are crucial for resilient and dynamic economies.
• SDG 10: Reduced Inequalities: The service democratizes access to financial resources, offering a vital alternative to traditional financing for businesses that are often underserved, thereby reducing economic inequalities.
• SDG 17: Partnerships for the Goals: Through strategic collaborations, such as its partnership with Titanium Payments, Receive exemplifies the multi-stakeholder approach necessary to achieve sustainable development objectives.

Core Offerings and Operational Framework

The Earned Revenue Access Platform

At the center of Receive’s strategy is its Earned Revenue Access platform, designed to provide businesses with immediate liquidity. Key features of this platform include:

1. Instant Access to Earned Funds: Businesses can access their earned but unsettled revenue without delay.
2. Debt-Free Capital: The service is provided without interest charges or the need for credit assessments, promoting financial health and stability.
3. White-Labeled Integration: The platform can be integrated by Independent Sales Organizations (ISOs) and payment processors, allowing them to offer this capability as a value-added service and create new revenue streams, thus scaling the impact on industry infrastructure (SDG 9).

Strategic Partnership and Product Innovation

In a key partnership advancing SDG 17, Receive has collaborated with Titanium Payments to launch the Titanium Boost Business Mastercard. This product transforms pending merchant settlements into immediate spending power, directly addressing the cash flow challenges that impede business growth. A supporting tool, the SmartPay Calendar, further empowers merchants by allowing them to manage repayment schedules and offers incentives for early settlement, enhancing their control over financial operations.

Conclusion: A Model for Inclusive Growth

Receive’s emergence from stealth, backed by significant funding, marks a notable development in the fintech landscape. The company’s focus on providing immediate, non-debt-based capital directly supports the growth and resilience of SMBs. By aligning its business model with key Sustainable Development Goals, particularly SDG 8 and SDG 9, Receive provides a scalable framework for fostering inclusive economic growth and building more resilient financial infrastructure for enterprises globally.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the fintech startup Receive highlights issues and solutions that are directly connected to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth: The core mission of Receive is to support the growth of small and medium-sized businesses (SMBs) by solving cash flow problems, which is fundamental to economic growth and job creation.
• SDG 9: Industry, Innovation, and Infrastructure: The article focuses on a technological innovation (a fintech platform) that provides critical financial infrastructure to support small-scale industrial and other enterprises.
• SDG 1: No Poverty: By providing financial stability and growth opportunities to small business owners, such as the “local mechanic” mentioned, the initiative helps secure livelihoods and prevent individuals from falling into poverty due to business failure.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the services and goals described in the article, the following specific SDG targets can be identified:

SDG 8: Decent Work and Economic Growth

• Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.”
  • Explanation: Receive’s entire business model is built around this target. It directly encourages the growth of SMBs by providing “access to financial services” through its Earned Revenue Access platform. The article states the company’s focus is on “democratizing financial access for small businesses” to help them overcome challenges that “hinder SMB growth.”
• Target 8.10: “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.”
  • Explanation: Receive, as a fintech startup, is a modern financial institution. Its “white-labeled model” allows other financial players like “Independent Sales Organizations (ISOs) and payment processors” to incorporate its technology, thereby strengthening their capacity to offer innovative financial services to merchants.

SDG 9: Industry, Innovation, and Infrastructure

• Target 9.3: “Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.”
  • Explanation: The article details how Receive increases the access of small enterprises to financial services. It provides “immediate access to earned revenue without interest or credit checks,” which is a form of affordable finance that helps businesses avoid “costly financing.” This access allows them to “purchase parts for upcoming jobs” and keep their operations running, ensuring their integration into value chains.

SDG 1: No Poverty

• Target 1.4: “By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to… appropriate new technology and financial services…”
  • Explanation: The article addresses the financial vulnerability of small business owners. By providing access to a new technology platform and financial services (“Titanium Boost Business Mastercard”), Receive gives these entrepreneurs better control over their economic resources and cash flow, reducing the risk of financial distress that could lead to poverty.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not cite official UN SDG indicators, but it provides information that can be used as practical, implied indicators to measure progress:

• Indicator for Access to Financial Services (Targets 8.3, 9.3, 1.4): The existence and adoption of Receive’s platform and the “Titanium Boost Business Mastercard” are direct indicators of increased access. Progress could be measured by:
  • The number of SMBs and merchants using the platform.
  • The total dollar amount of earned revenue accessed by businesses through the service.
  • The number of financial partners (ISOs, payment processors) that adopt the white-labeled model.
• Indicator for Business Growth and Stability (Target 8.3): The article implies that a key measure of success is the ability of businesses to grow without being hindered by cash flow issues. The anecdote of the “local mechanic who was struggling to scale” provides a qualitative indicator. Quantitative progress could be measured by tracking the growth rates or operational continuity of businesses using the service.
• Indicator for Innovation and Institutional Capacity (Target 8.10): The successful launch of new financial products like the “Titanium Boost Business Mastercard” in collaboration with “Titanium Payments” serves as an indicator of strengthened capacity within the financial sector to innovate and serve SMBs. The total funding raised by Receive (“$7.1 million”) also indicates the scale and potential impact of this new financial technology.

4. Table of SDGs, Targets, and Indicators

Source: pulse2.com