FreshBooks, a leading cloud accounting software with paying customers in 160+ countries, announced that it had raised $80.75 million in Series E funding. The company secured an additional $50 million in debt financing, bringing FreshBooks’ total valuation to over $1 billion.
The round was led by FreshBooks’ longtime investor Accomplice, with participation from J.P. Morgan, Gaingels, BMO, and Manulife. In addition, Barclays, an established FreshBooks platform partner in the UK, was added as a new investor.
FreshBooks Chief Executive Officer Don Epperson said the funding comes as an injection of confidence in the company’s mission to digitally enable small businesses.
“We’re going to use this capital to reinforce our competitive differentiators. This includes investing in markets that are becoming more regulated, helping Owners manage their finances through simplistic workflows, and prevailing as leaders in best-in-class support,” said Don Epperson.
Don Epperson said he is proud to be backed by this longstanding group of investors who believe in what they do and want to advance our next stages of success.
The investment arrives as more business owners become digitally enabled to meet local tax and invoice compliance systems. The company plans to use the funding towards sales and marketing, research and development, and strategic acquisitions. The FreshBooks platform will subsequently reach more customers in more countries worldwide with its easy-to-use features and locally relevant integrations.
“We’re pleased to support the FreshBooks team with this equity investment as they scale into new markets,” said Kester Keating, Head of US Principal Investments at Barclays.
“Through this investment and Barclaycard Payments’ ongoing commercial partnership with FreshBooks, we are supporting our clients to embrace this change, as software continues to have a profound impact on businesses of every size,” said Kester Keating.
Jeff Fagnan, Founder and Managing Partner at Accomplice, adds as repeat investors the company is more confident than ever to back FreshBooks once again and lead this round.
“The need to support self-employed professionals with tools and solutions has never been greater, and no company understands and delivers the way the team at FreshBooks does,” said Jeff Fagnan.
Since 2004, FreshBooks has helped more than 30 million people in over 160 countries and has established itself as one of the leading accounting software platforms for small businesses and self-employed professionals. The company differentiates itself by providing accounting software designed for business owners while delivering award-winning customer service.
This funding round serves as another significant milestone FreshBooks has forged since its inception in 2003. In September 2020, FreshBooks acquired Mexican e-invoicing company Facturama to expand the company’s audience in Spanish-speaking markets.
FreshBooks is changing the way business owners manage their books. Its owner-first accounting platform, loved by businesses in over 160 countries, takes an easy-to-use approach to managing finances, billing, payments, and client engagement. FreshBooks, known for its 10x Stevie award-winning customer support, serves customers of all sizes from offices in Canada, Croatia, Mexico, Netherlands, and the US.