Kabbage Receives $17 Million in Series B Funding, Secures Patent

Kabbage, a startup that provides working capital to online businesses, revealed two big announcements today. 

First, it received $17 million in funding from Mohr Davidow Ventures, BlueRun Ventures, David Bonderman, Warren Stephens and UPS Strategic Enterprise Fund. With this funding, Kabbage says:

“We’re able to explore new territories; we can pursue additional marketplaces, new financial products and expand our model even further now.”

Second, it has been awarded a US patent:

“The US Patent is an ‘apparatus to provide liquid funds in the online auction and marketplace environment.’ Basically, it’s a system that lets use an online merchant’s shop and selling history to best determine how dire a need there is of funds.”

To check out how Kabbage works, watch its FinovateSpring 2011 demo.