UserHub, a startup that wants to make modern and scalable monetization capabilities attainable for software businesses of all sizes, announced it raised $3.2 million in funding. This funding round was led by Berlin-based venture capital company 468 Capital. And other notable investors include Plaid founder Zach Perret’s Mischief Capital, Tokyo Black, GTMfund, Lorimer Ventures, Nomad Cap, and Alumni Ventures.
The company’s platform enables SaaS vendors to manage users, subscriptions, and pricing in one place. The technology also works with authentication providers like Auth0 and billing systems like Stripe so SaaS companies can quickly integrate.
UserHub will use the funding round to expand the engineering team, accelerate product development, and grow its customer base. Most SaaS companies (especially startups) lack the resources to invest in user management, pricing, and billing systems, rightly choosing to focus on their core offering. So many SaaS vendors miss opportunities to serve all customer segments in their market and lose out on expansion revenue from their biggest customers.
UserHub was designed to provide startups with all the features necessary to “Land and Expand” their customer base. And UserHub is designed for application-layer SaaS, whose customers might progress from an entry-level tier with a single-seat account to an enterprise tier with thousands of seats.
The company’s co-founders, Patrick Rafferty, and Silas Sewell, launched UserHub after becoming frustrated with existing user management and billing products while working at Reonomy, a commercial real estate AI-powered SaaS product.
Rafferty was VP of Product and Engineering, and Sewell was Principal Engineer. And even with a team of 60 engineers, Rafferty viewed their user management and billing features as underdeveloped compared to the leading SaaS products they used daily.
Sewell built authorization and subscription billing systems at several SaaS companies. He realized that customer identity and billing would have to be reimagined in a singular platform.
KEY QUOTES:
“Technology companies reinvented consumer commerce by creating a seamless buyer experience – both online and offline. Square, for instance, equipped every restaurant with an elegant checkout experience. UserHub will do the same for SaaS startups: help firms launch monetization capabilities usually reserved for the largest products. We will help them unlock expansion revenue, and allow them to focus on developing their core products.”
– UserHub Co-Founder Patrick Rafferty
“For too many startups there is a gap between the value their software delivers and the value they can extract from customers at scale. Patrick and Silas have first-hand experience of the problems this gap can create for companies and how to solve it. Their vision for a new user management and best-in-class billing platform is a game-changer in that it allows UserHub customers to offer an end-user experience as seamless as what the industry has come to expect from companies like Notion and Figma.”
– 468 Capital Partner Philipp Seifert
“UserHub allowed us to quickly add team plans and seat management to our product. This saved us a bunch of time and allowed us to focus on what we do best. The Stripe Customer Portal was a great start, but UserHub takes it to the next level.”
– Glimpse Co-Founder Max Fram-Schwartz
