citybiz+ Gynger Closes $20M Series A, Secures up to $100M in Debt Facility

New York-based Gynger, which provides finance for companies’ technology purchases, has closed a $20 million Series A funding round, and additionally secured up to $100 million in debt to fund customers.

The equity round was led by PayPal Ventures, with participation from Gradient Ventures, Google’s specialized AI venture fund, New York’s Velvet Sea Ventures, Englewood, N.J.-based BAG Ventures and New Mexico’s Deciens Capital. Gynger’s prior backers include m]x[v Capital, where the company was incubated and founded in 2021. The company’s debt facility came from Californian institution, Community Investment Management.

Serial Entrepreneur

“Over the last year, we have experienced tremendous growth and demand,” said Gynger founder and CEO Mark Ghermezian, a serial entrepreneur focused on marketing. “We are revolutionizing how companies buy and sell technology by providing a payments solution that addresses the needs of both vendors and their customers. We are building the future of flexible financing for all technology.”

Gynger says it simplifies and optimize technology purchases, besides allowing startups to do so without diluting their capital. Its customers include Snowflake, Salesforce, AWS, Cisco, ZoomInfo and Datadog. The company plans to use the funding to scale its team and operations, and develop a full-scale payments solution for IT buying. Toward this goal, the company is building an automated embedded financing platform for buyers and sellers of technology.

Large Market Led by AI

Driven by generative artificial intelligence, global technology is tipped to be worth $4.7 trillion over the next year, according to Forrester. The B2B segment is one of the fastest-growing categories with over $900 billion in annual spend on SaaS alone.

“Gynger is changing the way businesses buy software,” said James Loftus, managing partner of PayPal Ventures. “Companies from seed stage startups to enterprise can unlock flexible payment terms on any technology expense, regardless of the vendor’s terms, making it possible to purchase tools needed for growth while also preserving cash.”

citybiz+ Sponsors

With the help of advanced AI and data analytics, Gynger claims it underwrites and approve credit for customers faster than rival financers, and additionally helps companies anticipate IT requirements.

citybiz+ Cohorts

“Gynger offers a unique source of financing for businesses who are in need of flexible terms as they increase their capital outlays on software,” said Jacob Haar, managing partner of Community Investment Management. “With software spend increasing more than any other spend category, Gynger is well positioned to provide valuable support to businesses nationwide.”

Ghermezian, an entrepreneur and investor in SaaS startups, previously co-founded Braze, which closed an initial public offering in 2021. He also runs the venture firm m]x[v Capital and marketing startup Tildei. His investments include Nutanix, Lattice, Thoughtspot, Rubrik, and Riskified.