With the current economic climate and the increasing financial challenges, it is crucial for finance teams to gain a stronger grasp on their cash flow. Fortunately, there are several startups that aim to provide assistance in this area.
Panax, a two-year-old Israeli startup, recently secured a $10 million Series A round of funding. Team 8 led the funding, with participation from TLV Partners.
Startups have found success in targeting the CFO stack through process optimisation, allowing for more time to focus on strategic initiatives. SVB’s collapse had a positive impact on the cash management category, benefiting companies like Embat, Kyriba, Statement, and Vesto.
Similar to an auditor, Panax primarily serves midsize and large companies in traditional industries like manufacturing, logistics, and real estate. Unlike startups, traditional solutions often lack extensive treasury departments for organisations that require more resources.
Similar to an auditor, Panax also aims to distinguish itself in its offerings, going beyond just providing investment accounts and credit lines.
According to Panax CEO Noam Mills, going beyond just offering a dashboard is critical for the company’s vision, as they aim to provide more than just a visualisation of cash flow, as mentioned in an interview with Eltrys. She believes that assisting their clients involves using data to gain a deeper understanding of their priorities, exerting influence over decision-making processes, and providing guidance in managing their treasury.
It appears that Panax’s value proposition has struck a chord with its early adopters, including companies like Oddity, a public beauty-focused company. These companies have found that cash management automation is a valuable tool for saving both time and money.
With a fresh injection of $5.5 million in funding, Panax is poised to expand its go-to-market strategy and strengthen its AI and data teams. The additional funds, led by TLV Partners, bring Panax’s total funding to $15.5 million. According to Mills, the company now has enough data to support these efforts.
At Panax, AI plays a critical role in assisting the startup in analyzing financial data, uncovering valuable insights, and predicting cash flow. Identifying action items is an area where AI can be particularly beneficial for Mills. Often, there is no established Treasury Department, which is why we view AI as a valuable tool to help us be proactive and alert clients to potential issues.
Panax’s clients include companies with complex treasury management requirements. Usually, these companies have operations in multiple locations and deal with various currencies. Foreign exchange is an area where Panax can provide valuable optimization, potentially leading to additional benefits for the company. Panax offers a SaaS model that adjusts its pricing according to the complexity of each client’s operations.
Many stakeholders are eager to benefit from helping companies optimise their cash flow. For example, individuals have the option to apply for loans and request working capital or credit lines through their banking app or accounting software interface. Panax offers a comprehensive treasury management dashboard that seamlessly integrates recommendations and projections.
Panax’s objective, according to Mills, is to provide finance teams with all the necessary tools to make and implement decisions without having to rely on external sources. If we provide them with insights, they will be able to allocate more funds into interest-bearing accounts. We are actively developing that functionality for various money movement use cases, closely aligning it with our value proposition.
Mills’ grasp of these requirements stems from her background in private equity, which she shares with Niv Yaar, the chief business officer and co-founder. However, her personal background is quite unique: Prior to her positions in PE and corporate finance, she had a successful career as an Olympic fencer for Israel, earning numerous titles in her home country.
When questioned about the similarities between her athlete past and CEO role, she emphasised the shared psychological demands, such as the need for persistence and the ability to navigate through uncertainty. However, while fencing is typically an individual sport, running a company requires more of a team effort.
In light of its successful Series A round, Panax has exciting plans to expand its presence in New York City. Yaar, a key company player, will be moving to the NYC office as part of this expansion. However, Panax’s research and development operations will continue to be based in Israel. Panax’s CTO and third co-founder, Sefi Itzkovich, also have experience in machine learning at Facebook. Prior to his role at Panax, he served as CTO at Otonomo, which recently went public through a SPAC.
“There is competition for talent everywhere, but the strong connections we have in the R&D community in Israel, thanks to our CTO and founding team, give us a slight edge in attracting talent,” Mills said.
Team 8 anticipates that network effects will also have an impact in New York City, where they have an office. However, she and her co-founders also selected the city based on the added convenience of being in the same time zone as Israel, in addition to its significance in the field of fintech. According to Mills, the main hub for this is located in New York and the East Coast are the main hubs for this.
