Dive Brief:
- Research firm CB Insights has identified 85 early-stage U.S. startups as potential acquisition targets for finance automation platform Ramp, according to a Monday analyst note. Among the companies were startups such as Streamlined, which focuses on accounts receivable automation; Zenskar, which offers automated billing; and Adaptive, a construction-focused finance platform.
- Ramp, which offers services such as corporate cards, expense management and accounts payable automation, is looking to broaden its reach to “finance automation,” the note said. A spokesperson for Ramp declined to comment on the potential acquisition targets cited by CB Insights.
- “There's a lot of technology companies in today's climate that have interesting technology that probably have very good teams that are likely not to be able to raise their next round of funding,” CBInsights CB Founder and Executive Chair Anand Sanwal said in a Monday interview. “And so there's a lot of prospective acquisition targets out there right now.”
Dive Insight:
New York-based Ramp raised $150 million in funding last week, making it a standout in a season where fintech funding has slowed, according to Sanwal. That gives it the wherewithal for acquisitions, along with larger finance firms with cash to spend.
“With pressure on valuations, consolidation is inevitable in the expense management software market,” Sanwal said in Monday’s note. “It’ll be interesting to see if AmEx, Capital One, JPM Chase, or others might jump in and try to snatch up some tech and talent on the cheap.”
Ramp acquired procurement startup Venue in January, and an AI-powered customer support startup Cohere.io last July. The company also partnered with e-commerce company Shopify last August.
“We believe acquisitions are a great way to deliver more value for our customers through software that makes them more productive, efficient, and profitable. We look for small teams with expert engineers and technology that will accelerate our product roadmap,” Ramp VP of Strategic Finance Will Petrie said in an emailed statement.
