Canadian fintech FreshBooks reaches $1bn valuation with latest funding

FreshBooks, a leading cloud accounting software with paying customers in 160+ countries, announced today that it had raised USD $80.75 million in Series E funding. The company secured an additional USD $50 million in debt financing, bringing FreshBooks’ total valuation to over USD $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.

“The funding comes as an injection of confidence in our 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, Chief Executive Officer at FreshBooks. “I’m proud to be backed by this longstanding group of investors who believe in what we 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. This 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.”

Jeff Fagnan, Founder and Managing Partner at Accomplice, adds, “As repeat investors, we’re 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.”

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.

“With FreshBooks’ ambition to help small businesses on their digital journey, there is incredible potential for this organization to capture the market. We look forward to continuing to grow our relationship with the FreshBooks team as they innovate the platform and expand internationally through strategic acquisitions,” says Andre Salvi, Head, Technology & Innovation Banking Group, BMO Bank of Montreal.

This funding round serves as another significant milestone FreshBooks has forged since its inception in 2003. In September 2020, acquired Mexican e-invoicing company Facturama to expand the company’s audience in Spanish-speaking markets.