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Business Fintech & e-commerce SaaS

HoneyBook Raises $250M For SMB Customer Management Platform In Tiger Global-led Round

, a startup that helps freelancers and independent business owners manage their customers, closed on a $250 million Series E funding led by with participation from , , and .听

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Its first institutional investor, , invested $25,000 in the company in 2013, which brought HoneyBook to Silicon Valley. In total the company has聽 raised .听

HoneyBook manages client interactions from the point when a customer lands on a website through an agreement, invoicing and payment.听

Oz Alon, HoneyBook co-founder and CEO

鈥淲e manage your client flow and cash flow,鈥 HoneyBook co-founder and CEO said in an interview.听

HoneyBook鈥檚 customer base varies widely, but what they have in common is that they鈥檙e all generally service-based businesses, he said. 鈥淵ou can think of them as web designers, interior designers, business coaches, photographers,鈥 he said. 鈥淭he kind of service they sell is very personalized.鈥澛

Businesses want to automate client interaction, but also maintain a personal touch. And customer expectations have also changed; instead of getting a response in 24 hours, they expect a response within the hour.

HoneyBook says its service has grown more than 100 percent over the past year, with $1.9 billion in customer transactions. It now has tens of thousands of customers that it charges a monthly subscription fee of $39 plus a 3 percent transaction fee. The service uses to process payments.听

This latest funding round came fast on the heels of HoneyBook鈥檚 $155 million Series D聽led by Durable Capital Partners, in May, a deal that valued the company at more than $1 billion.听

Tiger Global was also an investor in the Series D, and partnered with HoneyBook before leading the Series E. 鈥淲e built this trust with Tiger,鈥 said Alon, adding 鈥渢hey truly think long term.鈥澛

“They’re supporting us with many different needs, from hiring talent to thinking strategically about the business and connecting us to folks that can do that for us,鈥 he said.听

With the capital raised this year, HoneyBook will invest in 鈥渄efining this category and evangelizing it,鈥 said Alon. On the product side, the company will build a platform with 鈥渕ore access to capital for our members: How can we help them bank, how can we help them in that balance between automation and keeping it personal?鈥

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