Billtrust, provider of outsourced billing services, has closed on $25 million in funding from Bain Capital Ventures.

In a release, Billtrust said it will use the funding to identify and acquire companies that will “further strengthen its position atop the burgeoning billing and payments industry.”

Billtrust’s choice of Bain Capital Ventures followed a lengthy review process. As part of the deal, Matt Harris, managing partner of Bain Capital Ventures, New York, will join Billtrust’s board of directors.

Bain Capital Ventures is the arm of Bain Capital that invests in venture deals. The parent Bain Capital has been a source of political controversy surrounding the presidential election because it was co-founded by GOP candidate Mitt Romney in 1984.

“Most private equity firms are interested in making financial investments,” said Flint Lane, Billtrust president and CEO. “Bain Capital Ventures is different. “In addition to its funding, Bain brings a wealth of expertise in corporate acquisitions that will be of immense value as we evaluate opportunities. In addition, Matt Harris’ deep understanding of the payments industry will expedite our new working relationship and allow us to execute our plans quickly.”

According to Lane, the business input that Bain Capital Ventures will have on the company or its acquisitions will be from Harris’ involvement as a member of the board.

“As the world quickly moves from paper to electronic billing, there is incredible opportunity for an enterprise-focused service provider with the right balance of technology and customer-facing methodology to be a leader in this space,” said Harris. “There are currently many payments players in the consumer space, but Billtrust is the first company we have seen that is so well positioned to dominate the enterprise market. Additionally, we have been consistently impressed with the vision and experience of Flint and his executive team.”

Bain Capital Ventures’ investment is the second outside investment in Billtrust’s history — bringing the total funding raised to $30 million. An earlier funding round, led by Edison Ventures of Lenox Drive, provided Billtrust with an initial round of funding.

The deal with Bain is the latest in a flurry of activity for Billtrust. It moved to a new office in American Metro last year and opened a new operations center on South Gold Drive in Hamilton (U.S. 1, February 1). In January, it acquired Mark Altman & Associates of Hudson, Mass., to supplement its municipal billing services.

In February the company launched Invoice Central, a cloud-based business invoice network that provides online invoice delivery and payment services for both vendors and small businesses.

In August Billtrust was named in Inc. magazine’s 2012 ranking of the nation’s fastest-growing private companies for the sixth consecutive year. This year the company was ranked at number 1,347 in the Inc. 500/5000 listings. Over the last three fiscal years, the company reported a growth record of 385 percent.

Billtrust, 100 American Metro Boulevard, Suite 150, Hamilton 08619; 609-235-1010; fax, 609-235-1011. Flint Lane, president & CEO.

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