Israeli B2B blockchain startup Clear banks $13m in series A funding

Israel-based startup Clear, which builds blockchain-based networks and applications for B2B commerce, has raised US$13 million in a series A round led by the Fintech Strategic Investments group at Fidelity-backed Eight Roads.

Telefonica Innovation Ventures, the Telekom Innovation Pool of Deutsche Telekom, Hong Kong-based HKT, and Singtel Innov8 also participated in the round. As part of the deal, Eight Roads’ Fintech Strategic Investments head Alokik Advani will be joining Clear’s board.

Photo credit: logicbomb

According to a statement, B2B transactions account for US$150 trillion of annual global trade, earning banks upwards of US$140 billion in transaction fees. The overhead cost for businesses to reconcile data, settle contracts, and process invoices also amounts to trillions of dollars in expenses.

To tackle this problem, Clear is developing a blockchain-based platform to help enterprises automate contracts and data management. Its solution provides automatic payments and clearing, cuts transaction fees and long payment cycles, and manages fraud prevention efforts.

The startup said it plans to use the new funds to scale its operations, grow its team, and promote the adoption of its tech in the telecom space. It also aims to explore implementations in other industries such as financial services, media, advertising, energy, and health care.

Telcos conduct high-volume B2B transactions on a daily basis. The company claims that with its tech, such companies can drive down operating costs, tackle mobile fraud, and increase efficiencies.

Clear said its protocol allows B2B smart contracts to be executed seamlessly, while retaining data control, fidelity, and confidentiality. The end product is a shared platform for telcos to collaborate and settle payments more easily through automation.

Founded in 2018, the 30-person team said it has already implemented several trials in the telecoms industry, with clients such as BT Group, Colt, Deutsche Telekom, PCCW Global, Telefonica, Telstra, Tata, and Orange, among others.