Tabs

Company Overview

Tabs is an AI-powered accounts receivable (AR) software company that provides a comprehensive platform for B2B businesses to streamline their billing and financial operations. Founded by a team of experienced operators, Tabs aims to modernize and automate AR processes, which have traditionally been manual and time-consuming. The company is headquartered in the United States and operates in the financial technology (fintech) industry.

Tabs was created to address the lack of modern, automated software solutions in the accounts receivable space, particularly for B2B companies dealing with complex billing scenarios. The founders recognized that while other areas of finance such as payroll, accounts payable, and spend management had seen significant advancements, AR remained largely unchanged and ripe for innovation.

Products Overview

Tabs offers a comprehensive AR platform that covers the entire “contracts-to-cash” lifecycle. The platform’s key features and modules include:

1. Extraction: Uses AI to automatically extract, structure, and organize pricing and terms from complex contracts, eliminating the need for manual data entry or updates.

2. Invoicing: Streamlines invoice calculations and creation, handling complex billing scenarios and integrating with source systems for usage data.

3. Payments: Supports various B2B payment methods and includes automated cash application for seamless reconciliation.

4. Revenue Recognition: Automates revenue recognition schedules to ensure GAAP compliance and simplify auditing processes.

5. Reporting: Provides comprehensive visibility into customer financial relationships, including aging, collections, ARR/MRR, cash forecasting, and deferred revenue.

6. Integrations: Offers seamless integrations with ERPs, tax systems, payment processors, and CRM tools like Salesforce and HubSpot.

The platform is designed to be flexible, capable of handling changes, custom contracts, and complex pricing models without requiring manual updates to price books or billing systems.

Founding Team

While specific names are not provided in the given information, it is mentioned that Tabs was founded by a team of operators who have spent decades building and scaling companies. One of the co-founders and the current CEO is Ali Hussain, who is quoted discussing the company’s mission and long-term goals.

Problem and Market Fit

Tabs addresses several key pain points in the B2B accounts receivable process:

1. Manual work: Many finance teams spend significant time manually processing contracts, calculating invoices, and following up on payments.
2. Errors and inconsistencies: Manual processes are prone to human error, leading to billing mistakes and potential revenue leakage.
3. Delayed payments: Inefficient AR processes can lead to longer Days Sales Outstanding (DSO) and impact cash flow.
4. Lack of visibility: Many companies struggle with fragmented data across different systems, making it difficult to gain a holistic view of their financial relationships with customers.

Tabs fits into the market by offering an AI-powered solution that automates these processes, reduces errors, improves cash flow, and provides better financial visibility for B2B companies.

Business Model

While specific pricing details are not provided, Tabs appears to operate on a Software-as-a-Service (SaaS) model. They likely charge businesses a subscription fee for access to their platform, with pricing potentially varying based on the size of the company or the volume of invoices processed.

Funding and Runway

Tabs has secured backing from several prominent investors, including:

• Lightspeed Venture Partners
• Primary Venture Partners
• L2 Ventures
• Commerce Ventures
• Company Ventures
• Operator Partners

The exact amount of funding raised is not specified in the provided information.

Competitive Landscape

While specific competitors are not mentioned, Tabs positions itself as a unique solution in the AR automation space, particularly for B2B businesses with complex billing needs. They differentiate themselves through their AI-powered contract analysis capabilities and their ability to handle flexible pricing models and contract terms.

Customers

Tabs serves a variety of B2B companies across different industries. Some of their notable customers include:

1. Cortex
2. Coalesce
3. Alkira
4. Cyberhaven
5. Statsig
6. Econolite
7. Mode
8. Red Antler
9. Findigs
10. Kea
11. Pinata
12. Messari
13. Inspiren
14. Canvas
15. BrewBird

These customers range from startups to established companies in tech, finance, and other sectors.

Relevant News

While there are no specific dated news items provided, the company appears to be in a growth phase, actively hiring across engineering and go-to-market teams. They are positioning themselves as a leader in applying AI to B2B financial operations, with a focus on transforming accounts receivable processes.