FreshBooks, a Toronto-based cloud accounting software company focused on SMBs, announced today it has secured $80.75 million in a Series E round of funding, as well as $50 million in debt financing.
Accomplice, the existing backer of FreshBooks led the equity financing. The company called it an “inside round”, which propelled FreshBooks into unicorn status at a value of $1 billion.
J.P. J.P. FreshBooks now has more than $200m in capital over its life.
FreshBooks is a cloud-based accounting platform that makes it easier to invoice, pay bills, and report on financial matters for self-employed and small-business owners. For the first ten years of its existence, FreshBooks was completely self-funded.
FreshBooks, like many other startups was founded to address a problem for its founders. Mike McDerment, FreshBooks co-founder was an independent designer. He found Excel and Word difficult to use when billing clients and thought they were not designed to produce professional invoices. He coded his solution, which became the basis of FreshBooks. The company was entirely self-financed until 2014. McDerment raised $30 million through Accomplice, Oak Investment Partners and Georgian Partners.
Don Epperson, who was previously the executive director of FreshBooks in 2019, took over as CEO. McDerment is still the executive chair.
FreshBooks employs 500 people across Canada, Mexico, Canada and the Netherlands. The company has also hired over 100 employees during the last year. In an attempt to reach Spanish-speaking customers, FreshBooks also entered LatAm in the past year by acquiring Mexico’s e-invoicing firm Facturama in September 2020.
FreshBooks will use the new capital for sales, marketing, research and developing and other strategic acquisitions. __S.17__
Epperson stated that the company would also invest in more regulatory markets and help owners to manage their money through simplified workflows.
He said that more entrepreneurs are working digitally to comply with local tax and invoicing systems. __S.20__
Epperson stated that “the need for business owners to manage their businesses digitally has increased, and this is changing how small business owners interact with accountants and bookkeepers,” TechCrunch reported. The funding is a boost to our efforts to digitally empower small businesses.
The exec kept a tight lipped on growth metrics such as year-over year revenue percentage growth. He stated that FreshBooks had “seen significant increase” in customers from last year. This was partly due to a surge in small-business startups driven by the pandemic.
Epperson stated that the pandemic revealed the importance of understanding how seismic events impact customers. __S.26__
Epperson stated that FreshBooks data revealed that women-owned businesses took three times longer in America to recover than businesses run by men. This stat provided the basis for further research on how the pandemic affected businesses in multiple industries. Epperson also suggested that data sharing partnerships were formed with local governments to aid policymakers to make small-business owners more comfortable.
Accomplice’s founder, Jeff Fagnan is a managing partner in Cambridge, Massachusetts. He clearly believes that FreshBooks has the potential to be a success. We are insiders and have a better understanding of how the company scales and the growth in the market. This is why FreshBooks has been our biggest investment .”
FreshBooks joins a growing list of Toronto-based unicorns. Late last month, 1Password raised $100 million in a Series B round of funding that doubled the company’s valuation to $2 billion. 1Password became a unicorn for the first time in 2019.
Publié at Tue 10 August 2021, 05:12.03 (+0000).