FreshBooks raises $80.75M in a Series E round

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SaaS News - FreshBooks raises $80.75M in a Series E round (source: SaaS Industry)
At a Glance

FreshBooks, a cloud accounting software company that caters to SMBs, has secured $80.75M in a Series E round, as well as $50M in debt funding. FreshBooks is a cloud-based accounting software platform that offers financial solutions to small business owners and self-employed individuals.  


FreshBooks, a Toronto-based cloud accounting software company focusing on SMBs, has raised $80.75 million in a Series E round and $50 million in debt financing. FreshBooks has now raised more than $200 million in investment during its existence, thanks to the latest capital injection. 

Accomplice, an existing investor, led the equity round, which FreshBooks touted as a “inside round” that catapulted the business to unicorn status with a valuation of “above $1 billion,” according to TechCrunch. Other participants in the round include Barclays, J.P. Morgan, Gaingels, BMO Technology & Innovation Banking Group, and Manulife. 

FreshBooks is a cloud-based accounting software platform that helps small company owners and self-employed persons with invoicing, expenditures, payments, payroll, and financial reporting (and their clients). For the first decade of its existence, the firm, which claims to have serviced more than 30 million individuals in over 160 countries, was self-funded.

FreshBooks was founded to address a problem that one of its creators was experiencing. Mike McDerment, FreshBooks’ co-founder, was running a small design business in 2003. When it came to charging clients, he found Word and Excel to be inconvenient to use, and he believed they weren’t designed to produce professional-looking bills. As a result, he created his solution, which is now the core of FreshBooks. 

Until 2014, when McDerment chose to bring in outside investors and secured $30 million from Oak Investment Partners, Accomplice, and Georgian Partners, the firm was self-funded.

Don Epperson joined FreshBooks as executive director in 2019 before taking over as CEO this year. Mike, who previously held the post, is still the company’s executive chair.

The need for owners to manage their business digitally has accelerated, and this has changed how small business owners work with bookkeepers and accountants. The funding comes as an injection of confidence in our mission to digitally enable small businesses.

Don Epperson, CEO of FreshBooks

He added that the epidemic also highlighted the need to understand how seismic occurrences influence our consumers.

After analyzing FreshBooks’ own proprietary data, we learned that businesses owned by women were taking three times longer to recover in the U.S. versus businesses owned by men. This stat laid the foundation for conducting more research into how the pandemic was affecting businesses across multiple industries and entering into data-sharing partnerships with local governments to help policymakers enact change in the support available to small business owners.

Don Epperson, CEO of FreshBooks

With more people choosing self-employment, the FreshBooks team fundamentally believes in the growth of small businesses, and the importance of helping these businesses scale. As insiders, we have better context for how the company is scaling and how the market is growing, and this is why FreshBooks is our largest investment to date.

Jeff Fagnan, founder and managing partner at Accomplice

FreshBooks employs 500 individuals throughout Canada, Croatia, Mexico, the Netherlands, and the United States, with over 100 new hires in the last year. In September 2020, the business entered the LatAm market by purchasing Facturama, a Mexico-based e-invoicing startup, to increase its audience in Spanish-speaking regions.

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