FreshBooksA Toronto-based SMB-focused cloud accounting software company today announced that it has secured $ 80.75 million in Series E round financing and $ 50 million in debt financing.
Existing backer Accomplice led equity finance, which the company described as an “inside round” and pushed FreshBooks to the unicorn status with a “over $ 1 billion” rating.
JP Morgan, Gaingels, BMO Technology & Innovation Banking Group and Manulife have also participated in equity investments with platform partners and new backers Barclays. With the new capital injection, FreshBooks has raised a total of more than $ 200 million over its lifetime.
FreshBooks Has built a cloud-based accounting software platform designed to make billing, expenses, payments, payroll, financial reporting, and more easy for small business owners and self-employed (and their clients). The company, which serves more than 30 million people in more than 160 countries, was bootstrapped in the first decade of its life.
As with many startups, FreshBooks was started to solve the problem of one of the founders. In 2003, FreshBooks co-founder Mike McDerment ran a small design agency. When it comes to billing clients, using Word and Excel was frustrating and felt like it wasn’t built to create professional invoices. So he coded a unique solution that underpins today’s Fresh Books.The company was up to self-funded In 2014, McDerment decided to attract outside investors, raising $ 30 million from Oak Investment Partners, Accomplice and Georgian Partners.
In 2019, Don Eperson joined Fresh Books as Executive Director before moving to the CEO role this year. Previously in that position, McDarment continues to serve as the company’s executive chair.
FreshBooks has 500 employees in Canada, Croatia, Mexico, the Netherlands and the United States, and has employed more than 100 people over the past year.Last year, the company entered the Latin American market. After acquiring a Mexican-based electronic billing company Facturama in September 2020 To expand the audience in the Spanish-speaking market.
FreshBooks plans to use the new capital for sales and marketing, R & D, and additional strategic acquisitions.
According to Eperson, the company will also use new funds to invest in tightly regulated markets and help owners manage their finances through a “simple workflow.”
For example, he said more business owners are working to be digitally compliant to meet local tax and invoice compliance systems.
“There is an increasing need for owners to manage their businesses digitally, which has changed the way small business owners work with clerk and accountants,” Eperson told TechCrunch. “This money comes as an injection of trust in our mission to digitize SMEs.”
For growth indicators such as year-on-year growth in profitability, executives Fresh Books says “Since last year, the number of new customers has increased significantly. This is partly supported by the increase in new SMEs due to the pandemic.
The pandemic also revealed the need to understand how seismic events affect customers, Eperson said.
“Analysis of FreshBooks-specific data shows that in the United States, women-owned businesses take three times longer to recover than men-owned businesses,” Epperson said. I am. “This statistic laid the foundation for further research on how pandemics impacted and entered businesses in multiple industries. Data sharing partnership with local government To help policy makers enact changes in support available to small business owners. “
Jeff Fagnan, founder and managing partner of Accomplice, based in Cambridge, Massachusetts, is clearly bullish on the potential of FreshBooks, and his company has been continuously investing in Canadian companies over the past seven years. It states.As more and more people choose to be self-employed, the FreshBooks team basically believes in the importance of helping small businesses grow and grow. As insiders, we have a better context of how the company is expanding and how the market is growing. That’s why FreshBooks is the biggest investment ever. “
FreshBooks is the latest in the growing number of Toronto-based unicorns.At the end of last month, 1Password raised $ 100 million Series B Round Financing This doubled the company’s valuation to $ 2 billion. 1Password first became a unicorn in 2019.
FreshBooks reaches $1B+ valuation with $130.75M for its SMB-focused accounting platform – TechCrunch Source link FreshBooks reaches $1B+ valuation with $130.75M for its SMB-focused accounting platform – TechCrunch