FreshBooks, accounting solution provider for small service-based business owners, announced it raised $30 million USD in its first institutional investment round.
The round, led by Oak Investment Partners with participation from Atlas Venture and Georgian Partners, will continue to fuel the growth that propelled FreshBooks to more than double their user base in the last two years to more than 10 million.
The company also has plans to grow from a current staff of 150 to more than 400 employees by 2016, and is currently hiring developers, product managers and marketing experts.
"Small business owners are grossly under-served when it comes to accounting software,” stated Mike McDerment, CEO and co-founder of FreshBooks. “They don’t have enough choice, and vendors treat them as if one size fits all. The result is they are forced to use tools that are complex - or worse, use Word and Excel to run their businesses. Neither of these options helps make running a business easy and efficient. That’s where FreshBooks comes in. We’re the only company exclusively focused on the needs of service-based businesses, ironically, the largest segment of the small business market.”
Lead investor Oak Investment Partners focuses on high-growth financial services technology.
“FreshBooks is growing the cloud accounting software market by delivering a solution that is designed for the millions of small business owners that want to run their businesses without having to learn accounting," stated Ann Lamont, managing partner at Oak Investment Partners. "Given our focus on high-growth financial services technology, partnering with FreshBooks is a natural fit. We look forward to helping FreshBooks realize their vision of building the market-leading accounting solution built exclusively for small service-based business owners.”