Doxo, a Seattle based start-up focused on helping people and businesses go paperless, said today it has received $5.25 million in funding.
The funding was led by Mohr Davidow Ventures and Amazon CEO Jeff Bezos, Bezos Expeditions.
Doxo said the funding is aiding the company’s expansion and private trials with some of the largest U.S. utility, insurance, banking, Internet, satellite, phone, travel and cable providers.
"Closing what we call the ‘paperless adoption gap,’ is a massive market opportunity," said Steve Shivers, doxo co-founder and CEO.
"Based on comparable online metrics, paperless adoption can and should be at least four or five times higher than current levels cited. For customers, all this paper mail is a big headache. For businesses, it’s enormous wasted expense. Adoption is lagging so dramatically because clear, straightforward customer needs aren’t being met. doxo is out to remedy that."
Doxo says only about 12 percent of the 55 billion transactional document volume is delivered exclusively in electronic format today. The direct expense of paper, printing and postage for transactional mail cost businesses more than $35 billion each year.
The company says a 30 percent increase in paperless adoption of transactional documents would save at least three million trees, over 150 million gallons of gas, and eliminate more than three million tons of greenhouse gasses every year.
"Despite the best efforts for paperless adoption by many corporations, there appears to be a cap on adoption," said Marc DeCastro, research manager at IT market research advisory firm IDC Financial Insights.
"For the enterprise, they want a new approach that will save money and drive greater customer adoption and interaction. For the consumer, they want a simplified process without having to manage or share login credentials across multiple web sites."