Honeybook, which has built a customer experience and financial management platform for customer-based small businesses and freelancers, announced today that it has raised $ 155 million in a Series D round led by sustainable capital partner LP.
Tiger Global Management, Battery Ventures, Zeev Ventures, 01 Advisors as well as existing backers Norwest Venture Partners and City Ventures also participated in the financing, bringing the New York-based company’s valuation to over $ 1 billion. With the latest round, Honeybook has raised $ 215 million since early 2013. The $ 28 million that Honeybook raised in March 2019 is a big leap for Series D.
When the COVID-19 pandemic hit last year, Honeybook’s leadership team was concerned about the potential impact on their business and hung themselves up for the revenue decline.
Instead of retrenching people, he asked everyone to take pay-cuts, and this included the executive team, who “doubled” the rest of the staff.
“I remember it was terrible. We knew that our clients’ businesses were going to be dramatically affected, and it would dramatically affect our time,” he recalls. CEO Oz Alon. “We had to make some drastic decisions.”
But the flexibility of Honeybook’s customer base also surprised the company, who restored those salaries only a few months later. And, As corporate layoffs driven by the COVID-19 epidemic led more people to start their own businesses, there was a big jump in demand for honeybooks.
“Our members who saw a shortfall in demand went out and found demand in another thing,” Oz said. As a result, Honeybook doubled its number of members on its SaaS platform and tripled its annual recurring revenue (ARR) in the last 12 months. Members made more than $ 1 billion in business on the platform in the last nine months.
Honeybook adds tools such as billing, contracts and client communication to its platform to help business owners stay organized. Since its inception, service providers such as the US and Canada Graphic Designers, Event Planners, Digital Marketers & Photographers It has done more than 3 billion dollars of business on its platform. And as the pandemic was meant to move more things to more people online, Honeybook came equipped with digital tools to help its members adapt.
“Customers now expect the same level of streamlined communication, seamless payment and online service they used to personally receive from business owners,” said Alon.
Oz and co-founder / wife, Nama, were both small business owners themselves at one time, so they already had information on the pain points of running a service-based business.
Ozone said that HoneyBook’s software not only helps SMBs to do more business, but also helps them “transform the potential of real customers.”
“We help them communicate with potential customers so they can win their business, and then help them manage the relationship so that they can keep them.”
The company plans to continue using its new capital Product development and “dramatically” promoting its 103-person headcount in its New York and Tel Aviv offices.
“We are seeing a very high demand for additional services and products, so we definitely want to invest and create better ways to present our members online,” Alon told ClearTips. “We are also seeing demand for financial products and the ability to access capital faster. So, we talk about the plan to invest in it. “
The company also wants to make its platform “more customizable” for different categories and verticals.
Battery Ventures general partner Chelsea Stoner said her firm believed the expanding market for productivity tools to serve small businesses and entrepreneurs was a “discrete and discrete productivity tools market”.
Honeybook, she said, is a true platform for SMBs to “deliver a vast array of functionality in a unified UX.”
“It unites and connects every task for solopreneurs, from creating and delivering marketing work, to organizing and executing proposals, sending invoices and collecting payments,” Stoner said. “The company is constantly innovating and iterating in response to its members; We see a lot of opportunities with payments going forward … and, due to Kovid-19 and other factors, the company is sitting on pent-up demand which will further accelerate growth. “