Monday, June 17, 2024

Xolo secures $6.8m in Series A funding, launches “a virtual company” service for modern freelancers

Xolo (formerly known as LeapIN), the online platform for launching and running one-person businesses anywhere in the world has announced the completion of $6.8m (€6m) Series A funding, and a launch revolutionary form of entrepreneurship. The launch of the “virtual company” service will enable millions of professional freelancers around the world to radically reduce the complexity and cost of engaging with national governments and operate in a borderless world. The service will cut the time needed to launch a freelance business from weeks to minutes. 

Xolo’s investment round was led by European venture firms Karma Ventures (Estonia), Vendep Capital (Finland), and Leap Ventures (France). 

The company has been offering a full suite of services for global freelancers from 2015, including company formation online, access to banking, and full accounting and compliance service. The new “virtual company” product will bring that concept further by removing the last obstacles to launching their business.

Allan Martinson, Chief Executive Officer at Xolo, said: “We are focusing on 40 million professionals globally who have chosen to run their business independently. Estimated one million new freelancers start their professional journeys each year. Our ultimate goal is an absolutely seamless service that brings time spent on administrating a freelance business to zero.”

Xolo will now offer two products: Xolo Go and Xolo Leap. Xolo Go will allow launching a freelancing business in mere minutes as “a virtual company”, complete with a dedicated bank account, invoicing, expense management and payouts. Xolo Leap allows launching an EU-registered company with full banking service, accounting and tax compliance based on Estonia’s innovative e-Residency concept. 

“Administrating independent professional business in a traditional way may take up to two days a month. Our aim is to cut that down to near zero by offering an incredibly simple online platform that merges company formation, banking, accounting, and other services. We’re taking care of the bureaucracy so that millions of talented professional freelancers can focus on running their businesses,” Martinson continued. 

Xolo has thousands of customers around the world who use it as a subscription-based software-powered service, with 93% recommending the service that processes over €10,000,000 in customer revenues every month.

 “Xolo is the quickest and easiest way to launch and run a one-person freelancing business in Europe. Our largest markets are Germany, Spain, France, the UK, Ukraine and Turkey. Our typical customers are software developers, management consultants or designers. Many of them are describing launching on Xolo as a life-changing event,” said Martinson.

“We are fascinated by Xolo’s vision of powering the revolution of free work. This, combined with the company’s proven service and talented team, is a formula for success,” said Margus Uudam, the partner with Karma Ventures. 

Sakari Pihlava, a partner at Vendep Capital, said: “Xolo is building something revolutionary – an interface between the micro-businesses and the governments that eliminate the complexity of reporting and compliance”.

Karma’s Margus Uudam and Vendep’s Sakari Pihlava will join Xolo’s board.

Xolo was founded in May 2015 when its founders had the urge to revolutionize the way microbusinesses are set up and managed. Using this funding, it aims to expand its operations across Europe and globally to allow more entrepreneurs to join the market.

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