- HoneyBook — a leading client experience and financial management platform for independent service-based businesses — announced recently that it raised a $155 million Series D equity round. These are the details.
HoneyBook — a leading client experience and financial management platform for independent service-based businesses — announced recently that it raised 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.
Over the past year, the pandemic accelerated two existing macro trends – the growth of the independent workforce and the digitization of small businesses. And the way consumers interact with small businesses has fundamentally changed, necessitating the increased adoption of digital tools to support their growth. This shift drove momentum for HoneyBook and the company tripled annual recurring revenue (ARR) in just 12 months. Plus people continued leaving the traditional workforce to pursue their passion.
Last year, sweeping corporate layoffs driven by the pandemic resulted in an even greater surge in entrepreneurship as more new business applications were filed in the U.S. than at any other time since 2005. And 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 9 months alone.
HoneyBook had also continued to expand its market as those businesses whose work was unimpeded by COVID-19 restrictions like web and graphic designers, business coaches, and consultants — experienced a surge in demand for their services. And new HoneyBook subscribers in these industries grew more than 4 times in the past year.
HoneyBook plans to use the funding to advance product development and expand internal resources – which includes dramatically increasing hiring so the company can continue meeting the needs of this diverse and growing workforce.
“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