HoneyBook raises $155 million
Fintech company HoneyBook announced the completion of a $155 million series D equity round led by Durable Capital Partners LP with participation from Tiger Global Management, Battery Ventures, Zeev Ventures, 01 Advisors, as well as existing investors Norwest Venture Partners, OurCrowd, and Citi Ventures. This round gives the company, which expects to generate $80 million in 2021, a $1.1 billion valuation.
Founded in 2013 and based in San Francisco, HoneyBook offers an online business and financial management platform that gives users access to a range of tools such as billing, contracts, and client communication. The majority of HoneyBook’s users are creative entrepreneurs like photographers, graphic designers, and interior designers.
According to the company, the pandemic accelerated two existing macro trends: the growth of the independent workforce and the digitization of small businesses. This shift drove “immense momentum” for HoneyBook, and the company tripled annual recurring revenue in just 12 months. At the same time, people continued leaving the traditional workforce to pursue their passion. In 2020, corporate layoffs driven by the pandemic resulted in an even greater surge in entrepreneurship, as more new business applications were filed in the US than at any other time since 2005. New HoneyBook subscribers more than doubled in the past year, and members booked more than $1 billion in business on the platform in the past nine months alone.
“We believe the accelerated trends of self-employed business growth and small business digitization will continue as the economic recovery builds. With its visionary leadership and proven ability to innovate and provide unique solutions for the service-based small business sector, we believe HoneyBook will drive employment, scale its business and define its industry in the years ahead.” – Henry Ellenbogen, Managing Partner and Chief Investment Officer of Durable Capital Partners LP.
“Clients now expect streamlined communication, seamless payments and the same level of exceptional service online that they were used to receiving from business owners in person. We’re proud to have helped independent service-based businesses meet the demands of a rapidly changing, digital-first world. Amid a year of uncertainty, small business owners exemplified innovation and an unrelenting passion for their craft.” – HoneyBook CEO Oz Alon.