Israeli financial management platform for small businesses and self-employed platform developer HoneyBook today announced the completion of a $155 million Series D financing round led by Durable Capital Partners with participation from Tiger Global Management, Battery Ventures, Zeev Ventures, 01 Advisors as well as existing investors Norwest Venture Partners, OurCrowd and Citi Ventures. The new financing round gives HoneyBook a valuation of $1.1 billion, post money. Only a very small amount of the funds raised are part of a secondary offering with some employees exercising options.
The way consumers interact with small businesses has fundamentally changed, necessitating the increased adoption of digital tools to support their growth and this shift has driven momentum for HoneyBook, with the company tripling annual recurring revenue (ARR) over the past year. HoneyBook subscribers more than doubled in the past year, and members have booked more than $1 billion in business on the platform in the past nine months alone.
HoneyBook was founded in 2013 by CEO Oz Alon, CPO Naama Alon and CTO Dror Shimoni as an event management platform but switched direction when it realized the shift in the US labor market. The company has 100 employees, half of them in Israel and half in San Francisco.
Honeybook CEO Oz Alon said, "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. We’re proud to have helped independent service-based businesses meet the demands of a rapidly changing, digital-first world. Amid a year of uncertainty, small business owners exemplified innovation and an unrelenting passion for their craft."
HoneyBook will use the funding for product development and significantly increasing hiring.
Published by Globes, Israel business news - en.globes.co.il - on May 4, 2021
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