Israeli-founded business management software firm HoneyBook announced Wednesday that it raised $250 million in a Series E round, six months after raising a $155 million investment and becoming a tech unicorn, a private company valued at over $1 billion.
The current funding round values HoneyBook at over $2 billion. The investment was led by Tiger Global Management with participation from Durable Capital Partners LP, Norwest Venture Partners, Citi Ventures, and OurCrowd, the company said in a statement.
HoneyBook was founded eight years ago in San Francisco by Israeli husband-and-wife team Oz Alon and Naama Alon, alongside Dror Shimoni. The company developed an online business and financial management platform for small businesses, entrepreneurs and freelancers that allows them to manage clients and projects, handle contracts, collect payment, and automate emails and tasks. It serves clients across the US and Canada.
The COVID-19 pandemic has benefited the company, as consumers’ interactions with businesses changed, necessitating the increased adoption of digital tools to support their growth, the company has said in the past.
“The US is in the middle of a workforce revolution that is driving the continued rise of the independent business economy,” the company said in a statement Wednesday, adding that its total bookings on the platform have now surpassed $5 billion, including $1.8 billion in 2021 alone.
“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,” said Oz Alon, who serves as CEO. “HoneyBook empowers business owners with the tools and resources they need to own their independence with passion and purpose.”
HoneyBook said it will use the investment to advance product development and provide “even greater value” to a growing independent workforce.
“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,” said 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,” added Curtis.
Israeli companies developing business software have surged in valuation in recent months. In September, global payroll and payment management platform Papaya Global soared to a valuation of $3.7 billion after raising $250 million in a fresh funding round, its third in less than a year.
Israeli-co-founded startup Deel was valued at a staggering $5.5 billion last month, up from $1.5 billion in April, after raising $425 million in Series D funding.