HoneyBook, the leading platform for independent business owners to manage their client flow and cash flow, today announced a $250M Series E equity round led by Tiger Global Management with participation from Durable Capital Partners LP, Norwest Venture Partners, Citi Ventures, and OurCrowd.
The U.S. is in the middle of a workforce revolution that is driving the continued rise of the independent business economy. Nearly 20 million people quit their jobs between April and August 2021, according to U.S. Bureau of Labor Statistics. Referred to as the ‘Great Resignation,’ it’s a resounding rejection of traditional employment and a pronounced shift in attitudes toward the value of work. At the same time, new business momentum carried over from 2020 with more than four million applications filed from January to September 2021, nearly a million more than during the same period last year.
The pandemic has produced two cohorts of workers whose attitudes are shaping the future of work: the unemployed and the overworked. Those who experienced a period of extended unemployment were left with the time to contemplate their job satisfaction, reconnect with their passions and discover the value of work-life balance. Those who continued working throughout the pandemic experienced heightened stress and burnout. Both groups are now choosing to claim their independence and build businesses of their own rather than return to traditional work. The payoff is clear as HoneyBook members’ businesses have experienced success, booking more than $1.8 billion on the platform in 2021 alone. HoneyBook members’ total bookings have now surpassed $5 billion.
“The workforce of today is seeking greater autonomy over their careers, flexibility in the way they live their lives, and fulfillment from the work they do–and that’s what it means to be an independent,” says HoneyBook CEO Oz Alon. “HoneyBook empowers business owners with the tools and resources they need to own their independence with passion and purpose.”
As the independent workforce continues to grow, so too does the demand for tools to help manage the many back-end tasks that go into running a successful independent business. HoneyBook’s platform empowers business owners to organize their processes into a streamlined client flow and efficiently manage their cash flow. This includes embedded financial services like payments and the company’s recently launched Capital product.
Access to capital is traditionally challenging for independent businesses. Although most are looking for funding to expand their operations, less than half report having their funding needs met by what is currently available in the market. HoneyBook Capital proactively offers eligible members access to the funds they need to grow their business and seamlessly integrates the repayment process transparently into their existing transactions.
“We’re witnessing unprecedented changes in the American workforce and immense momentum towards independent work. With a proven track record of innovation and decisive action, HoneyBook is the best-in-market solution to support the success of this emerging category of independent businesses,” says John Curtis, partner at Tiger Global Management. “We look forward to strengthening our partnership with this visionary company as they power the future of work.”
HoneyBook will use the investment to further advance product development and provide even greater value for the diverse and growing independent workforce whose rise shows no signs of slowing down.
HoneyBook is the leading platform for independent business owners to manage their client flow and cash flow, streamlining all of the steps needed to sell and deliver personalized contracted services. By combining tools like billing, contracts, and client communication, HoneyBook helps business owners get organized so they can provide an exceptional experience at every step. HoneyBook is trusted by service providers across the U.S. and Canada who have booked more than $5 billion in business on its platform. Founded in 2013, HoneyBook is based in San Francisco and funded by Tiger Global Management, Norwest Venture Partners, Aleph, Hillsven Capital, OurCrowd, Durable Capital Partners LP, Vintage Investment Partners, Battery Ventures, Citi Ventures, Zeev Ventures, and 01 Advisors.
To learn more about HoneyBook visit www.honeybook.com or download the app through the App Store and Google Play Store.
About Tiger Global Management
Tiger Global Management is a leading global technology investment firm with over $90 billion under management. The firm focuses on private and public companies in the software, internet, and financial technology sectors. Since 2001, Tiger Global has invested in hundreds of companies across more than 30 countries, including investments ranging from Series A to pre-IPO. The firm aims to partner with dynamic entrepreneurs operating market-leading companies in its core focus areas. Tiger Global’s investments have included JD.com, Toast, Databricks, UiPath, Snowflake, Stripe, Bytedance, SentinelOne, Procore, Facebook, Alibaba, Chime, Peloton, Attentive, LinkedIn, and Flipkart.