ZenBusiness secures $55 million in Series B
Austin-based provider of a micro business management platform ZenBusiness announced the close of a $55 million Series B funding round led by global venture fund Cathay Innovation. Other participants in the Series B round, which included $55 million in equity, were GreatPoint Ventures, Breyer Capital, and Omega Venture Partners. Existing investors who took part include Greycroft (led Series A), Lerer Hippeau Ventures (led Series Seed), Interlock Partners, Adam Zeplain’s mark vc, and ATX Venture Partners.
Since 2018, more than 80,000 micro businesses have launched using the ZenBusiness platform, and the company has a mission to deliver the country’s tens of millions of micro business entrepreneurs with the simplest and most convenient way to start, run and grow their businesses.
“ZenBusiness is revolutionizing entrepreneurship, the lifeblood of the economy and job creation, as the new ‘operating system’ for micro businesses that allows aspirers to become business owners. As a worldwide investment firm, we pride ourselves in backing innovative and impactful companies in every corner of the globe. During this critical time of economic uncertainty, the ZenBusiness platform is uniting a fragmented market for SMB solutions and will be a core enabler of a global movement by making starting, running and growing a business more accessible for everyone.” – Investment Director, Cathay Innovation, Alex Lazarow.
“What the ZenBusiness team is doing is a real game changer not just for their customer base but also for our country. By creating a centralized place for micro businesses to form, learn, connect, grow and thrive, ZenBusiness is playing a key role to help ensure that the future for aspiring entrepreneurs is bright. We are proud to support ZenBusiness as the company revolutionizes the future of small business, diversifies our economy, and creates a path for more people to turn their dreams into a reality.” – Founder of Breyer Capital and Facebook’s first institutional investor, Jim Breyer.
“Since the pandemic, we have experienced a 100% increase in growth and seen first-hand incredible resilience and grit among Americans seeking to make their mark as business owners. We are proud to play a vital role to help micro businesses, who make up a majority of US businesses, on their path to financial success and economic mobility. We are all in to help our customers — 87% of whom are first time business owners — make the transition from just a side hustle to full-time entrepreneurship and focus on turning their business dreams into a reality.” – CEO & Co-Founder of ZenBusiness, Ross Buhrdorf.
The company is also announcing ZenBusinessU, which will roll out in 2021. With ZenBusinessU, micro businesses will have access to a tailored curriculum, a community of experts and peers, and interactive seminars addressing specific business needs and key learnings to create a blueprint for growth, including:
– Having a website presence enables businesses to make more revenue in their first year. ZenBusiness customers who created a website after signing up are earning $15,000 more than those that don’t yet have a website.
– When starting out, use 100% of your time, energy and funds to find and know your customer. From getting your business listed on the local online directories to optimizing your search results, discovering your customer and understanding their purchase journey is critical for surviving your first year.
– While having a competitive price can get you in the door, the real clincher is providing greater value and more services. Simply put, do more for your customers than you’re asked or expected. ZenBusiness has been able to grow by 100% by giving customers more than just a LLC formation service by offering ongoing products and services to keep their business growing steadily and running smoothly.
