San Francisco fintech platform HoneyBook announced Tuesday that it raised $155 million in a Series D led by Durable Capital Partners LP.
HoneyBook’s financial management platform caters to the needs of small business owners and freelancers. The company’s platform covers tasks associated with billing, contracts and client communication. From creating and distributing marketing collateral to organizing and executing proposals, HoneyBook is used to help freelancers and SMB owners stay organized so that they can focus on other aspects of running a business.
The pandemic has helped to accelerate both the growth of the independent workforce and the digitization of small businesses. This shift has driven rapid growth for HoneyBook, as the company tripled its annual recurring revenue over the last 12 months. Investors expect that momentum will continue.
“We believe the accelerated trends of self-employed business growth and small business digitization will continue as the economic recovery builds,” Henry Ellenbogen, chief investment officer of Durable Capital Partners LP, said in a statement.
Since its inception in 2013, freelancers on HoneyBook have booked more than $3 billion in business on the platform, according to the company.
“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,” Oz Alon, CEO of HoneyBook, said in a statement. “Amid a year of uncertainty, small business owners exemplified innovation and an unrelenting passion for their craft.”
HoneyBook will use the funding to advance product development and “dramatically increase” its hiring efforts. The company currently has seven positions open across its product, operations, sales and marketing teams.
The company has raised $241 million in financing to date, according to Crunchbase. Additional investors Tiger Global Management, Battery Ventures and Zeev Ventures participated in the round, among others.