Why We Invested in Tabs, the AI Company Turning Contracts to Cash

Tabs, an AI-powered Accounts Receivable platform for B2B businesses, is a great example of a business solving very acutely felt problems. In a world where businesses are working with increasingly thin budgets and every minute counts, this team is on a mission to turn contracts to cash, freeing up the trillions of dollars currently stuck in overdue invoices—55% of all B2B invoices in the U.S.

Today, we couldn’t be happier to celebrate Tabs’ official launch out of stealth with their $12 million seed round, led by Lightspeed, and with ongoing participation from Primary.

Ali Hussain was previously the COO of Primary’s portfolio company, Latch, which creates smart home lock systems. At Latch, he was an exceptional operator who witnessed the problems that Tabs seeks to solve firsthand, making him an ideal fit to lead the business.

At the heart of Tabs’ solution is Tabs AI, a proprietary platform built to understand and extract B2B contractual elements. Using this information, Tabs then automates contract ingestion, invoicing, and payments, streamlining a company’s accounting process. Tabs' customers report seeing a 40% reduction in time to collect, mainly driven by avoiding manual work associated with calculating invoices. This also enables them to take advantage of market opportunities with pricing changes, usage models, and greater sales flexibility.

Customers are finding value right away. “Tabs is the only software we saw that could fully automate our complex billing and remittances process.” said Sebastian Hart, Director of Finance & Business Development at Findigs, a digital underwriting platform. “Tabs provides all the features we need to manage our receivables in one, easy-to-use platform. Not only are we now saving time on manual tasks, we’re also able to get cash in the door faster. Before Tabs, we spent multiple days doing manual work just to manage and submit invoices each month. With Tabs, we can reduce that work to near zero. Tabs understands the complexity of modern B2B billing and has built the technology to centralize and streamline the entire process. With Tabs, our Finance team is able to spend less time on billing and remittances, and spend more time on work that grows the business.”

Now with this round of financing, the team is excited to deliver company-changing insights to finance leaders, fundamentally impacting a company’s long-term value.