HoneyBook raises $250M to help independent businesses with client management needs; now valued at $2.4 billion valuation

HoneyBook, a business software tech startup and a provider of customer relationship management platform aimed at freelancers and small businesses in creative fields, announced today it has raised $250 million in funding led by investment giant Tiger Global Management.

The round also includes investments from existing investors: Durable Capital Partners, Norwest Venture Partners, Citi Ventures, and OurCrowd. The latest capital infusion brings the company’s valuation to $2.4 billion, which is more than double its valuation from its previous round in May. HoneyBook has now raised a total of $498 million since its inception in 2013.

Founded in 2013 by Dror Shimoni, Naama Alon, Oz Alon, and Shadiah Sigala, the San Francisco-based HoneyBook is a provider of a client experience and financial management platform for independent businesses. Its software is used by small companies, people who work by themselves (“solopreneurs”), and freelancers.  Like other CRMs, HoneyBook also helps freelancers and small businesses in creative fields develop relationships with potential new clients, manage projects, send invoices and accept payments, but with tools scaled for their business’ needs.

The demand for tools to manage back-end business tasks grew as more people shunned traditional employment and turned independent business owners, adding to the appeal of HoneyBook, the company said in its statement.

HoneyBook’s platform helps independent businesses stay organized by streamlining client flow, managing cash flow, and helping customers with client communications and payments. 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.

HoneyBook’s customers, which include freelancers, florists, photographers, and web designers, also use HoneyBook’s capital product to apply for loans, which come with no late fees.