CA-based financial management platform for independent service-based businesses Honeybook raised $155m in Series D equity funding at a $1bn valuation.
The round was led by Durable Capital Partners with participation from Tiger Global Management, Battery Ventures, Zeev Ventures, 01 Advisors as well as existing investors Norwest Venture Partners, OurCrowd and Citi Ventures.
With the latest round, HoneyBook has now raised $248m since its 2013 inception. The Series D is a big jump from the $28m that it raised in March 2019.
The company intends to use the funds to advance product development and expand internal resources which includes increasing hiring across all verticals.
Founded in 2013, HoneyBook combines tools such as invoices, contracts and project management features, helping SME owners and entrepreneurs streamline their business.
The company saw an upward graph in terms of customers last year as the Covid-19 pandemic led to a surge in people launching their own businesses. Furthermore, it also triggered SMEs in adopting online tools to support their growth. As a result, HoneyBook tripled its annual recurring revenue and doubled its client numbers over the past year.
Members booked more than $1bn on the platform in the past nine months alone, HoneyBook said.
The firm’s CEO Oz Alon said, “Clients now expect streamlined communication, seamless payments and the same level of exceptional service online that they were used to receiving from business owners in person.
“Amid a year of uncertainty, small business owners exemplified innovation and an unrelenting passion for their craft.”
Echoing a similar sentiment, Durable Capital Partners LP CIO and managing partner Henry Ellenbogen said, “We believe the accelerated trends of self-employed business growth and small business digitisation will continue as the economic recovery builds. With its visionary leadership and proven ability to innovate and provide unique solutions for the service-based small business sector, we believe HoneyBook will drive employment, scale its business and define its industry in the years ahead.”
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