New York based corporate virtual credit card startup Teampay has raised a $4m Seed Round led by Crosscut Ventures.
Teampay’s focus is on the mid-market, targeting companies with two hundred to a thousand employees. Hoag said that “Our target customer is too small to have a full purchasing department, but too big to use the CEO’s credit card.” The company has several paying customers on the platform today. A couple of bucks a month may not sound like much, but when you have hundreds of people leaving a company in any given year, multiplied by potentially dozens of subscriptions per employee, the amount of wasted expenses can be quite high. Hoag said that early customer data shows that roughly half of all transactions made by employees are recurring, with the other half being one-off.