$155M Raised By HoneyBook in Series to Help SMBs, Freelancers and Entrepreneurs for TechCrunch
honeybook smbs 155m series 1b ann: HoneyBook is on a mission to assist independent company owners to create prosperous enterprises while engaging in their passions. The business recently managed to raise $155 Million in Series D funding. Now its valuation is over $1 Billion.
A business management platform HoneyBook is made to make it easier for small business owners and creative entrepreneurs to organize their operations. Oz and Naama Alon launched it in 2013. The intention was of providing the creative sector with a way to centrally manage their projects, clients, and finances.
A number of functions are available through HoneyBook, including customer and project management, invoicing, and payment processing. HoneyBook makes it simple for users to handle their business chores without the need for numerous tools and software applications because of its user-friendly interface and intuitive design.
Features of HoneyBook
1. One of HoneyBook’s unique advantages is its capacity to assist users in overseeing their projects from beginning to end. Users may track their progress, submit contracts and payments, and develop personalized project proposals all in one location. In addition, HoneyBook provides a number of templates and automation tools to assist users to become more productive and save time.
2. Users of HoneyBook can manage their client connections in addition to projects. They can send automated reminders and follow-up messages, record customer information, and monitor communication history. Users may better manage their client interactions and offer customer service thanks to this.
3. More financial management options are available through HoneyBook. Users may manage their finances in one location, produce and send invoices, and take payments online. HoneyBook makes it simple for users to receive payments from their clients by integrating with well-known payment processors like Stripe and PayPal.
What are SMBs?
Small and medium-sized businesses are referred to as SMBs. In comparison to larger organizations, these enterprises employ relatively few people and generate relatively little in annual income. Depending on the sector and region, the precise definition of an SMB may change. However, generally speaking, it refers to companies with less than 500 people and annual revenues under $50 million.
Due to their dominance among enterprises worldwide, SMBs have a considerable impact on the global economy. They frequently serve as the foundation of local economies, generating employment opportunities and fostering the expansion and improvement of their communities.
Who is a Freelancer?
A freelancer is a person who works as an independent contractor and gets paid on a project-by-project or task-by-task basis, typically for short-term projects. A freelancer is not an employee of a company and is therefore free to work on multiple projects. For different people or businesses unless they have a written contract committing them to do so until they finish a specific project. Gig workers are another name for freelancers.
$155M Raised By HoneyBook to Help SMBs, Freelancers and Entrepreneurs
In a Series D round led by Durable Capital Partners LP, HoneyBook, which has developed a client experience and financial management platform for service-based small companies and freelancers, raised $155 million.
In addition to Norwest Venture Partners and Citi Ventures, other investors like Tiger Global Management, Battery Ventures, Zeev Ventures, and 01 Advisors joined the funding, raising the San Francisco-based company’s valuation to over $1 billion. Since its founding in 2013, HoneyBook has raised a total of $248 million. The Series D represents a significant increase from HoneyBook’s March 2019 round of $28 million.
The leadership team at HoneyBook was concerned about the potential effects on their company when the COVID-19 outbreak struck last year and prepared for a decline in sales.
Instead of asking people to take wage cuts, they ask everyone to do so. It includes the executive team, whose income was reduced “by twice” that of the rest of the workforce. honeybook smbs 155m series 1b ann
“I recall how terrible it was. We were aware that both our business and those of our clients would experience significant disruptions, recalls CEO Oz Alon. “We had to decide on some difficult things.”
But even HoneyBook was taken aback by the client base’s tenacity; a few months later, the salaries were reinstated. Also, HoneyBook experienced a significant increase in demand as a result of the COVID-19 pandemic-related corporate layoffs. It encouraged more people to launch their own enterprises.
“Our members went out and discovered demand in another product,” Oz added. “Our members saw a hit in demand.” As a result, over the previous 12 months, HoneyBook’s annual recurring revenue (ARR) and the number of subscribers on its SaaS platform both doubled. In only the last nine months, members used the platform to book more than $1 billion in business.
What does HoneyBook Offer to Business Owners?
With the intention of assisting business owners in maintaining organization, HoneyBook includes on its platform tools like billing, contracts, and client communication. More than $3 billion in transactions have been completed on its platform by service providers from the U.S. and Canada.
It also includes graphic designers, event planners, digital marketers, and photographers. When more people shifted to doing more of their business online as a result of the epidemic, HoneyBook also became ready to help its members adapt by equipping them with technology resources. honeybook smbs 155m series 1b ann
Customers now anticipate easy communication and quick payments. The same high caliber of service online that they had come to expect from business owners in person, according to Alon.
Along with his wife Naama and a lifelong friend, Dror Shimoni, Oz co-founded HoneyBook. Both Oz and Naama have had small businesses in the past, giving them intimate knowledge of the challenges of managing a service-based company.
The software from HoneyBook also enables SMBs to “transform potential clients into actual clients,” according to Oz. “We assist them to maintain the relationship so they can keep them,” Naama said. “We help them communicate with future clients so they can gain their business.”
The business intends to use its new funding to expand its 103-person staff. It is between its Tel Aviv and San Francisco offices, as well as to continue product development.
Since there is such a high demand for more services and goods, “We absolutely want to invest and develop new ways for our members to market themselves online.” “Demand for financial goods and the capacity to access funds more quickly are also on the rise. Hence, those are only a handful of the things we intend to invest in. Also, the business intends to “better customize” its platform for other categories and verticals.
Chelsea Stoners Opinion on HoneyBook
Battery Ventures’ general partner, Chelsea Stoner, stated that her company understood the sizeable market for productivity tools. The tools to support startups and small enterprises as “a market of discrete and separate productivity solutions.” She claimed that HoneyBook is an actual SMB platform that “provides a large array of features in one coherent Interface.”
According to Stoner, “it unifies and links every work for the solopreneurs. From producing and distributing marketing assets to planning and carrying out proposals to issuing invoices and collecting money.” “The business is continuously evolving and developing to better serve its customers. We believe that payments have a lot of potential in the future. Additionally, the company is sitting on unmet demand that will spur even faster development as a result of COVID-19 and other causes.