HoneyBook, a customer relationship management platform targeting small businesses in creative fields, announced today that it has raised a $ 28 million Series C led by Citi Ventures. All of its existing investors, including Norwest Venture Partners, Aleph, Vintage Investment Partners, and Hillsven Capital, also returned for the round. Citi is a strategic partner for HoneyBook. and this will allow it to offer new financial products to freelancers, its co-founder and CEO Oz Alon told TechCrunch.
This brings the total HoneyBook raised to date to $ 72 million. It is using the funds to grow its teams in San Francisco and Tel Aviv and create new functions for its user base, including small businesses, self-employed individuals (“solopreneurs”) and freelancers. Like other CRMs, HoneyBook helps them develop relationships with new leads, manage projects, send invoices, and accept payments, but with tools tailored to their business needs.
Alon told TechCrunch in an email that one segment HoneyBook is targeting is millennials (citing a survey that found that 49 percent of people under the age of 40 plan to start their own business). HoneyBook currently claims tens of thousands of customers and has exceeded $ 1 billion in booked deals with its software, along with 75,000 members on Rising Tide, the company’s online community for creative entrepreneurs.
Other management software platforms vying for the attention of entrepreneurs and freelancers include Tave, Dubsado, and 17hats. One of the main ways HoneyBook differentiates itself is by allowing its users to accept payments online without integrating with a third-party service. As a result, its users “transact more than 80 percent of their businesses online, significantly more than any other payment platform serving this audience,” Alon said. The partnership with Citi will also allow the company to develop more exclusive services for its target clients, he added.
In a prepared statement, Citi Ventures Israel Director and venture investing leader Omit Shinar said: “We are in the midst of a period of extensive changes in social structures and economic models.” The fintech ecosystem is producing more and more groundbreaking innovations that meet the needs of modern consumers, and we believe that as a pioneer in its space, HoneyBook can become a market leader in the United States. “