Back in June of this year, we were fortunate enough to be part of a very exciting opportunity: to invest in Snab, a Y-Combinator backed startup building a B2B banking and treasury management ecosystem that bridges the gaps between banks, ERPs,and accounting systems. Snab aims to automate & centralize access and management of global banking for complex business groups with multiple subsidiaries and digitize their access to financial services.

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That’s a lot of info, so to put it simply: This is a big deal for small and medium-sized businesses. Why? because it provides teams with one space to easily manage their cash flow in a way that is safe and secure, giving them the ability to automate and digitize the entire payment cycle, mostly for the first time (and instead of doing it on paper in many cases. Yes, really.)

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Why Now?

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Not having a well-integrated payments platform, which leads to a lot of manual work (especially among finance teams), is still a major problem for small and medium-sized businesses. In fact, according to CFO.com, finance teams spend a whopping 40% of their time just handling transactions. If tasks like these were automated, teams could spend more time on more valuable and fulfilling work, like strategy or decision-making.

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How Snab Found Its Niche

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The problem is right in their backyard. In Spain, where Snab is headquartered, small and medium-sized companies make up 98% of all businesses and a reported 9 out of 10 are looking for a new cash management system. And because the platform integrates with the inbox, adoption is easy and value is felt quickly. A pretty good combination of factors to get a foothold.

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Snab’s current infrastructure is targeted at the European market, but it plans to expand to the UK and then the US. We’re excited.

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Why We Invested

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In addition to a very strong potential product market fit, this is a team we are really excited about. Gorka Aguirre, the CEO, spent three years at a PE firm in NYC supervising the treasury of portfolio companies and directly felt the pain of an inefficient business banking & B2B payments experience. Beyond his experience in the space, this is a highly technical and product-obsessed team, which we love.

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They also have a well-thought-out sales process. Currently, it is a founder-led sales start-up, and with this extension, Gorka plans to hire a Sales lead.

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“Current ERP solutions like Netsuite and SAP are not meeting the needs of mid-market companies, so we see a lot of needed innovation in this space,” says Elizabeth Piñón, Partner at TheVentureCity. She adds, “We believe Gorka (CEO) and Juan (CTO) have the right skill set and grit to execute this highly technical vision, going to market primarily within the asset management space, and growing from there.”

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Why Snab Chose Us

“I was very pleased to select TheVentureCity as an investor due to their global footprint and experience, their deep knowledge in B2B payments and fintech infrastructure, and their level of professionalism with a diverse team of operators helping founders in a broad range of disciplines, from HR to product, pricing or sales. I was really impressed by this during the first weeks of onboarding with the team.” - Gorka Aguirre CEO & Co-Founder