HoneyBook doubles valuation with new spherical because it helps unbiased employees receives a commission – TechCrunch

Because the variety of individuals turning into unbiased employees rises, traders are taking discover of startups serving to these employees construct their companies. HoneyBook is the newest to really feel some love on this space, unveiling Wednesday that it raised $250 million in Sequence E funding, simply six months after securing $155 million of Sequence D capital.

The brand new spherical propels the San Francisco-based firm’s valuation to $2.4 billion, HoneyBook CEO Oz Alon instructed TechCrunch by way of e-mail.

HoneyBook’s software program allows enterprise homeowners to prepare their workflow, streamline their consumer listing and handle money movement. Instruments embrace embedded monetary companies, like funds and the corporate’s just lately launched capital product, which supplies eligible members entry to the funds for enterprise development. The brand new product integrates the compensation course of transparently into present transactions.

This time round, Tiger International Administration doubled down on its funding into the corporate to steer the spherical. Sturdy Capital Companions, which led the Sequence D, Norwest Enterprise Companions, Citi Ventures and OurCrowd additionally participated.

Known as the “Nice Resignation,” practically 20 million individuals give up their jobs between April and August 2021, in keeping with the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover survey. On the identical time, the Census additionally reported that over 4 million functions for brand spanking new companies have been filed between January and September of this 12 months.

“This has heightened demand for software program to assist the wants of unbiased enterprise homeowners,” Alon mentioned. “They’re searching for a platform to assist them handle their consumer movement and money movement, and that’s what HoneyBook does.”

As well as, attitudes towards the worth of labor are altering throughout the board as many companies at the moment are extra prepared to outsource work to unbiased contractors, he added.

Not solely did that shift yield double HoneyBook’s annual recurring income for the reason that starting of 2021, the corporate additionally greater than doubled its new subscribers within the final 12 months. Its members additionally achieved success, Alon famous, reserving greater than $1.8 billion on the platform in 2021, bringing whole bookings to over $5 billion for the reason that firm launched in 2013.

HoneyBook dashboard. Picture Credit: HoneyBook

HoneyBook didn’t plan to boost this shortly, however the present traders noticed that development and extra unbiased employees rising and needed to “deepen their partnership with us,” Alon mentioned.

“They understood the chance in entrance of us and determined to double down on their funding in our mission to assist unbiased companies achieve success,” he added. “We’re very fortunate to be supported by an amazing neighborhood of traders who share our values and are aligned with our imaginative and prescient for the long-term.”

HoneyBook isn’t alone, becoming a member of a number of corporations centered on unbiased employees that introduced new rounds up to now a number of months. For instance, Contra, knowledgeable community for unbiased employees, raised $30 million in Sequence B funding, whereas Lean introduced in $4.5 million in seed funding to assist gig employees with monetary merchandise. All Day Kitchens and Proprietor.com additionally raised cash to do one thing comparable, however for eating places.

Going ahead, HoneyBook has plans to supply extra monetary companies and can use the brand new funding on that product growth and to get extra new options to market faster, Alon mentioned.

“We all know that money movement is among the greatest challenges unbiased companies face,” he added. “To do this we additionally must proceed attracting nice expertise and we’re hiring for various thrilling roles throughout our groups within the U.S. and Israel. We’ve huge targets for 2022 and past as we proceed to assist the unbiased enterprise class.”