Now Corp., a financial technology co-founded by Stacey Abrams, secured $29 million in financing and an equity investment from Brigade Capital Management LP and Virgo Investment Group, according to an Oct. 7 news release.
Why it matters: Now allows businesses that work with other businesses to receive immediate payments while their clients still can choose to pay their invoices within a 30- to 90-day window. The startup’s growth reflects the continued recovery of small businesses after the worst of the coronavirus pandemic and showcases the expertise Atlanta has in the fintech industry. CEO Lara O'Connor Hodgson hopes to expand that reputation to include business-to-business payments.
At a glance: The goal of the startup is to elevate small businesses to the next stage of growth by allowing for immediate payments from customers, similar to credit cards for consumers. The startup raised a $9.5 million Series A round, led by Virgo Investment Group, in June.
Inside the deal: Global asset management firm Brigade Capital Management will provide Now with credit to facilitate the business-to-business payments. Partnering with such a large company — Brigade manages about $29.5 billion of assets — allows Now to serve more customers, Hodgson said. The equity investment will help scale company operations and increase product offerings.
What’s next: The company hired Sejal Shah Gulati, a fintech veteran, as chief growth officer, demonstrating its commitment to scaling. Now has 25 employees and plans to hire across every sector, including customer success, marketing and technology. Most of its customers are based in Georgia and the Southeast, so Hodgson sees this new capital as a chance to expand nationally. She also sees the company developing new features to meet customer needs.
A new home: Now is gearing up to move into The Dupree building off Powers Ferry Road near the perimeter. Hodgson said the building was recently renovated to cater to small, high-growth businesses such as Now. Employees have worked from home since the onset of the pandemic, which was when Now’s previous lease ended. Employees will keep a hybrid work schedule, but Hodgson is still figuring out how to facilitate in-person collaboration while retaining flexibility.
