Bill.com is a unicorn among unicorns. The company’s IPO filing shows no scandals, no excesses, no exaggerated market sizes, no made-up metrics and no founder control. In comparison to recent unicorn IPO filings such as Uber and WeWork, Bill.com seems pretty unexciting—except that it appears to be a well-run, growing business. In this age when even companies with “Boring” in their name are outlandish, a good, solid, boring business makes Bill.com stand out.
Founded in 2007, Bill.com provides small- and medium-size businesses (SMBs) with cloud-based financial software that simplifies the process of paying bills and getting paid. The company’s software uses AI to automate data entry, integrates with major accounting platforms and connects businesses across the world to automate payments between its customers and their customers and vendors. It has raised $347 million in venture capital across eleven funding rounds, the last of which valued the company above $1 billion.
We’d like to see more IPOs from companies that have solid, boring businesses like Bill.com. It has a large, diversified customer base, strong value-add services, attractive customer economics, and an efficient go-to-market strategy. The company could face competitive threats from accounting software providers like Intuit and Xero or from payment companies like PayPal and Stripe but it faces limited direct competition today. Overall, we think Bill.com is well positioned and is an IPO that, depending on the eventual valuation, investors should seriously consider.