Operate is a new kind of startup studio that believes founders need more than capital and advice to be successful. In addition to investing capital, Operate embeds our team of top-tier operators into startups to give them a higher probability of success and help execute their vision to make a big impact on society.

Operate

We invest in smart people solving hard problems, often difficult scientific or engineering problems. Importantly, we believe the brightest and most creative problem solvers seek the hardest and most interesting problems, and gathering the best technical talent is a major competitive advantage.  Advances in cloud and other computing technologies radically reduce the costs of starting and running new businesses, creating opportunities for outsized returns. We invest in teams we believe in and our experience suggests that finding good founding teams and leaving them in place tends to produce higher returns overall.  As a corollary, we resist shackling a company to its original business model. Businesses really do evolve over time and changing models in the early years is anything but a sign of weakness. We do not expect that the first business model for a company will be the final or best business model and do not see evolution as a negative. The most powerful minds are the ones that can be changed.  We believe that substantially all of our investments should be directed to companies with an audacious vision seeking enormous markets. So, we will continue to invest in very talented entrepreneurs who are pursuing ambitious, challenging tasks. We will treat them with respect and hope for the best.

Kortschak Investments L.P.

Clear Haven manages portfolios and funds that cover a broad range of credit instruments including consumer, residential, and commercial debt, private equity, and specialty finance investments.

Clear Haven Capital Management

BankTech Ventures is a newly launched venture capital fund with the mission to invest in technology companies whose products serve community banks and their end customers, ultimately helping drive banks’ competitiveness and growth in this evolving industry.

BankTech Ventures

EJF Silvergate Ventures Fund is a venture strategy focused on fintech companies. EJF Silvergate Ventures Fund combines investment skills throughout the capital structure with a corporate finance concentration to find what they believe are new alternatives for investing in complicated, mispriced assets.

EJF Silvergate Ventures Fund

Priority Tech Ventures provides technical, operational, sales, and financial resources to help early-stage technology startups, where payments play a significant role in the value chain.

Priority Tech Ventures

Torpago

Torpago is a financial technology company that provides corporate cards equipped with spend management software. With Torpago, employees can have the ability to spend as needed while finance departments and management can set appropriate controls. The company's mission is to empower employees and enable businesses to work more efficiently. Torpago was founded to simplify corporate expenses. It is headquartered in San Francisco, California.

<div>Torpago offers physical and virtual business expense cards for SMBs. The virtual cards can handle one-time or recurring payments, and users can also issue cards dedicated to each vendor to set limits and prevent overcharging. Torpago lets users optimize expenses by automating the approval and reconciliation of payments, while also categorizing, reporting, and providing insights into them.</div>

Platforms, apps, and cards to keep the corporate wallet in check

Business Expense Management

Fintech Torpago Adds ex-Flow Networks, Visa, PayPal Exec Chris Boncimino to Lead Business Operations

<div>
 
 Torpago offers physical and virtual business expense cards for SMBs. The virtual cards can handle one-time or recurring payments, and users can also issue cards dedicated to each vendor to set limits and prevent overcharging. Torpago lets users optimize expenses by automating the approval and reconciliation of payments, while also categorizing, reporting, and providing insights into them. 
 
 
 Torpago also automates accounting processes and reconciliations through its integrations with several softwares, including QuickBooks, Netsuite, Acumatica, and Xero. 
 
 
 Key customers and partnerships
 
 
 As of October 2021, the company had nearly 1,000 enterprise customers and reportedly had over 2,000 companies in its waitlist. 
 &nbsp;In January 2024, Tarpago launched &ldquo;Sunwest Visionary Card&rdquo;, a commercial credit card and expense management solution for Sunwest Bank.
 
 
 Funding and financials
 
 
 The company claims the business grew over 100% MoM, throughout 2021 (as of October 2021). Subsequently, Torpago raised USD 2 million in seed funding (led by Operate) and USD 75 million in warehouse financing in October 2021 at a reported valuation of over USD 1 billion. The funds were earmarked for further business expansion and to enable Torpago to onboard waitlisted customers.
 
</div>

<div>
 
 Expensify offers an app that provides a diverse range of expense and payment solutions and insights for individuals and enterprises. It offers business expense cards and reimbursement platforms with automated receipt scanning and approval workflows. Expensify also provides bill payment solutions with automated tracking, approval, and payment.&nbsp;
 
 
 
 
 Its corporate cards also offer benefits to users in the form of discounts when using several B2B platforms such as Stripe, AWS, Quickbooks, and Stack Overflow. Expensify can also be integrated with several third-party HR, tax, accounting, and travel platforms software.
 
 
 
 
 The company follows a freemium pricing model. For business expense cards, users are charged a monthly fee per card. Non-card reimbursement and business payout management platforms are subscription-based.
 
 
 <a href="https://sp-edge.com/updates/23003">
 In October 2023
 </a>
 , Expensify added a feature to its app that allows users to send and receive money, split expenses within individuals or groups, and use chat functionality, signaling the company's entry into personal finance.
 
 
 
 
 Key customers and partnerships
 
 
 
 
 As of October 2021, the platform had over 10 million end users, across several enterprises including La Trobe University, Swatch Group, Pinterest, and Atlassian. Moreover, Expensify reportedly had around 
 <a href="https://sp-edge.com/updates/23613">
 719,000 paid members
 </a>
 as of November 2023.&nbsp;
 
 
 
 
 Funding and financials
 
 
 The company&rsquo;s
 <a href="https://sp-edge.com/updates/26941">
 revenue amounted to USD 150.7 million
 </a>
 in 2023, with an adjusted EBITDA margin of 13.2%.
 
 
 
 The company&rsquo;s 
 <a href="https://sp-edge.com/updates/16593?industryIds=76">
 revenue amounted to USD 169.5 million
 </a>
 in 2022, with an adjusted EBITDA margin of 25.1%.
 
 
 
 
 The company was listed on the Nasdaq in November 2021, where it raised around USD 70 million at a USD 2.2 billion valuation. 
 
</div>

Expensify

Coupa offers a procurement and accounts payable management software that lets enterprises automate the management and settlement of payables (from invoice matching to payments) and supply chain activities. It also offers a travel and expense (T&amp;E) management platform, with embedded fraud detection, for employees to access integrated travel management solutions including travel booking, price assurance, and other traveler services.The company also operates the “Coupa App Marketplace,” a platform for business users to connect with certified solutions for supply chain, procurement, and finance functions. In March 2024, the firm introduced a number of <a href="https://sp-edge.com/updates/27258">AI-based features</a> to automate tasks, improve efficiency, and enable smarter decision-making for businesses. The firm also plans to launch Forecast Collaboration, a new solution to improve communication between buyers and suppliers by May 2024.In <a href="https://sp-edge.com/updates/33007">August 2024</a>, Coupa introduced a further series of AI-driven features such as Coupa Navi, Contract Intelligence enhancements, and the Coupa Advantage Marketplace. to help companies optimize process efficiency and improve productivity.The company raised aggregate gross proceeds of USD 153 million through an IPO in October 2016 and was listed on the Nasdaq. However, in December 2022, the company <a href="https://sp-edge.com/updates/15272?industryIds=76">entered a definitive agreement </a>(completed in February 2023) to be acquired by Thoma Bravo for USD 8 billion and be delisted from the Nasdaq. Key customers and partnershipsThe company offers its solutions to several industries, ranging from automotive and banking services, to oil and gas, and telecommunications. Its clients include several large global enterprises, including Sanofi, MGM Resorts, Salesforce, Juniper Networks, and Cooper Standard.Coupa delivers its payout solutions in partnership with several companies. Its virtual card partners include AirPlus, HSBC, Citi, and J.P. Morgan, while its payment tech providers include Stripe, Mastercard, PayPal, and TransferMate. In October 2022, <a href="https://sp-edge.com/updates/14052">Coupa partnered </a>with integration and automation solution provider, TradeCentric, to optimize the former’s procurement solutions. The company subsequently <a href="https://sp-edge.com/updates/17669">partnered with </a><a href="https://sp-edge.com/companies/59">Goldman Sachs </a>in April 2023, to leverage the latter’s payment, treasury, and banking infrastructure solution, “Transaction Banking (TxB).”In January 2024, the <a href="https://sp-edge.com/updates/25856">company partnered with Tonkean, </a>a no-code platform to develop business applications to launch “Tonkean Intake Orchestration for Coupa”, in Coupa App Marketplace, to improve intake-to-procure processes for customers.Moreover, Coupa launched an investment fund of USD 50 million in June 2021 to invest in early- and growth-stage startups in the business spend and procurement management industry. The funds first two portfolio companies were SaaS expense management platform, <a href="https://sp-edge.com/companies/408080">Zylo </a>, and procurement management platform, <a href="https://sp-edge.com/companies/152710">SourceDay </a>.

Coupa

Brex offers short-term financing (including earned revenue access) and expense management solutions. The platform primarily offers cards for businesses, including business expense card and corporate cards for larger businesses. Brex issues corporate cards based on several factors such as funding raised, revenue, and cash balances, instead of relying solely on credit scores for approvals.&nbsp;&nbsp;Brex also offers an automated bill payment solution for enterprises to manage payouts. This lets users choose several payment methods (ACH, wire transfers, checks, or cards) and also integrates with accounting systems such as Quickbooks and Xero. The company subsequently launched “Brex payables” in August 2023, an AI-enabled AP solution (from receiving invoices to approving payment) that combined bill payment and purchase card capabilities..In&nbsp;<a href="https://sp-edge.com/updates/33808">September 2024</a>, Brex launched Brex Embedded for global payments integration.&nbsp;Key customers and partnerships&nbsp;Brex users span several groups, such as tech startups, venture capitalists, and ecommerce companies. Brex primarily targets SMBs, and, as of October 2021, it reportedly generated around 60% of its revenue from mid-market companies. However, the company shifted its focus away from small businesses in June 2022, to focus on startups (pre-seed and venture funded companies) and mid-to-large-sized companies. Brex laid off around 11% of its workforce in October 2022, to increase focus on the company’s new strategy, and achieve sustainable profitability for years to come. It subsequently laid off a further 20% of its employees in January 2024 to make the company more agile and accelerate its path to profitability.Navan had around 8,800 enterprise customers as of April 2022, at which point Liquid was used by over 600 companies, including Zoom, Lyft, Pinterest, and Patreon.&nbsp;In October 2024, Brex partnered with Navan to create BrexPay for Navan, an integrated business travel and payments solution. Previously,&nbsp;<a href="https://sp-edge.com/updates/20254">Brex partnered</a> with&nbsp;<a href="https://sp-edge.com/companies/359227">Airwallex</a> in July 2023, to leverage AIrwallex’s network of 50+ global licenses, to support local currency collections for global corporate cards and employee expense reimbursements across the globe.In December 2023, Brex along with&nbsp; <a href="https://sp-edge.com/companies/780841">Ramp</a>&nbsp;<a href="https://sp-edge.com/updates/25146">collaborated with Uber’s enterprise arm</a> to improve expense processing efficiency by automating the receipt handling for Uber transactions while ensuring&nbsp; compliance with company policies.&nbsp;&nbsp;&nbsp;

Brex

Navan (formerly known as TripActions) offers a business and personal travel platform and pivoted to the expense management business by launching “TripActions Liquid” (Liquid) in early 2020. The company continues to offer a range of expense management solutions beyond just travel expense claims, including business expense cards and an employee reimbursement platform.&nbsp;&nbsp;The expense cards include physical and virtual cards with spend controls, policies and compliance, reconciliation, and custom dashboards for insights. Moreover, the cards reportedly bear zero foreign transaction fees (as of April 2022).The company claims that the Liquid platform reduces expense reporting hours by upto 66% and reconciliation time by 95%.&nbsp;&nbsp;Key customers and partnerships&nbsp;Navan had around 8,800 enterprise customers as of April 2022, at which point Liquid was used by over 600 companies, including Zoom, Lyft, Pinterest, and Patreon.&nbsp;In&nbsp;<a href="https://sp-edge.com/updates/34893">October 2024</a>, Navan partnered with Brex&nbsp; to create BrexPay for Navan, an integrated business travel and payments solution. Previously Navan partnered with Visa and Mastercard in June 2023, to launch “Navan Connect”, a patented card-link solution that allows businesses to connect corporate cards from third parties, for expense management and reconciliations. The company planned to expand its network tie-ups in the future.Funding and financialsThe volume of transactions processed through Navan reportedly increased by 7.5x since the period between June and September 2022.In October 2022, Navan <a href="https://sp-edge.com/updates/13743">raised USD 304 million in funding </a>, comprising a USD 154 million Series G round and a USD 150 million structured financial deal, to invest in expanding its global operations. The round valued the company at USD 9.2 billion, against its USD 7.25 billion valuation in October 2021. Moreover, the funding came just weeks after Navan reportedly <a href="https://sp-edge.com/updates/13440?industryIds=76">filed confidentially to go public </a>in Q2 2023 at a USD 12 billion valuation.&nbsp;

Navan

Ramp offers a comprehensive set of tools for expense and payout management. Its “5-in-1” software covers business expense cards, expense reimbursement platforms, and bill payment solutions (through ACH, checks, and virtual cards) and also includes automated accounting and reporting. Ramp came out of stealth in February 2020 with its business expense card offering (including physical and virtual cards) and thereafter expanded to other expense and payout solutions. The platform also offers bi-directional integration (to incorporate a contract review process into the approval workflow), dynamic intake forms, purchase order enhancements, among other features&nbsp;The platform lets users set and implement spend controls and expense policies and also helps enterprises manage their expenses through categorization, real-time reporting, and insights. Ramp claims it can enable businesses to close their books 86% faster than through traditional expense methods and reportedly reduces its users’ spending by 3.3% on average. In October 2024, Ramp launched Ramp App Center, a new app store that allows third-party developers to build specialized apps that integrate with Ramp's platform. &nbsp;Ramp has used acquisitions as a means of inorganic growth. In June 2023, it <a href="https://sp-edge.com/updates/19688">acquired Cohere.io </a>, to drive AI-related projects to help customers save time and money. Ramp also offers autonomous agents that concentrate on essential tasks such as expense management, fraud detection, and contract negotiations, utilizing both internal data and the broader linguistic context from GPT and the internet. In January 2024, <a href="https://sp-edge.com/updates/26114">Ramp&nbsp; acquired Venue, </a>a procurement solutions provider (primarily for large organizations) to improve employee purchase request, approval, and payment processes..Ramp can also be integrated with a range of third-party apps and service providers, including Amazon Business, Lyft, Corporate Traveller, Google Suite, and BambooHR.&nbsp;&nbsp;The company primarily generates revenue through card payment interchange fees, and was yet to generate revenue from its bill payment solution as of March 2022, despite seeing volume growth. Ramp expanded its bill payment solution in August 2022, by <a href="https://sp-edge.com/updates/13437">launching buy-now-pay-later (BNPL) solution </a>, “Flex.” Ramp reportedly processed over USD 10 billion in accounts payable volumes annually, as of January 2024.&nbsp;Key customers and partnerships&nbsp;Although Ramp initially focused on the SMB market, the company has expanded its focus market to larger enterprises, including Ro, Avelo, and Anduril. Ramp had over 15,000 business customers as of August 2023. Based on the new customer sign-ups in June 2022 (compared to May) Ramp reported faster growth in its enterprise segment customer base - up 300%&nbsp; - than its mid market (up 50%) and SMB (up 22%) customers.&nbsp;Ramp has also invested in several expense management companies across the globe, including MENA-focussed <a href="https://sp-edge.com/companies/1833119">Pluto </a>(February 2022) and Indian fintech <a href="https://sp-edge.com/companies/947785">Karbon </a>.&nbsp;<a href="https://sp-edge.com/updates/24091">In November 2023, </a>Ramp collaborated with Microsoft Copilot, integrating AI for finance tasks, including card issuance and anomaly detection, reducing manual work with the&nbsp; aim of streamline finances for enhanced strategic focus.In December 2023, Brex along with&nbsp; <a href="https://sp-edge.com/companies/780841">Ramp </a><a href="https://sp-edge.com/updates/25146">collaborated with Uber’s enterprise arm </a>to improve expense processing efficiency by automating the receipt handling for Uber transactions while ensuring&nbsp; compliance with company policies.&nbsp;

Ramp

Solutions that enable employees to avoid out-of-pocket spending on business expenses, using company-issued payment cards

Platforms that let employees scan receipts (through OCR) and automatically submit claims to receive reimbursements with the limited involvement of admin, finance, or HR staff

Platforms offering payout automation solutions that cover the process either entirely or partially—from vendor onboarding to making payments

Can extract information from invoices/receipts, classify expenses, automate approval and reconciliation processes, and offer insights

Tools can usually be customized based on a user's business nature and workflows

Partner with open banking infrastructure providers to enable account-to-account payments and topping-up cards

Insights and visibility on expenses and payout processes improves transparency in business spend and reimbursements

Solutions commonly include software platforms that digitize, automate, and offer insights on expenses for businesses

ANALYST_QUICK_TAKE

<div>
 
 Torpago, a provider of corporate card programmes for small and medium-sized businesses (SMBs), has secured USD 10 million in a Series B funding round. This round was co-led by Priority Tech Ventures and EJF Ventures, and also saw participation from BankTech Ventures along with other existing investors.
 The funds raised will be utilised to meet the increasing demand for Torpago's "Powered By" solution. This is a white-label commercial credit card and expense management software platform. It enables regional and community banks to compete with large-scale FinTech companies and national institutions. In addition, the investment will go towards improving Torpago's implementation and compliance resources and broadening its range of products.
 
</div> Analyst QuickTake: 
 The latest funding round follows its Series A funding in March 2023 and further strengthens Torpago’s unique product offering, where it focuses on the B2B market for regional and commercial banks instead of competing in the B2C market with established players such as <a href="https: 
//sp-edge.com/companies/627532"> Brex </a> and <a href="https: 
//sp-edge.com/companies/780841"> Ramp </a> .&nbsp;

Torpago

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