Total amount raised
$187 Million
Latest funding date
8/1/2022
Location
FreshBooks has successfully navigated 10 funding rounds, with the latest being a Debt Financing round. The company is backed by 17 investors, including Morgan Stanley Expansion Capital and Morgan Stanley Private Credit.
FreshBooks offers a comprehensive suite of financial management tools tailored for small businesses, freelancers, and solopreneurs. Keep reading to explore the intricacies of FreshBooks' fundraising journey and the investors backing this innovative platform.
What Is FreshBooks?
FreshBooks is a cloud-based accounting software company that caters to small and medium-sized businesses. Based in Toronto, Ontario, Canada, the company operates within the Accounting, FinTech, Payments, Small and Medium Businesses, and Software industries.
Founded with the mission to simplify financial management for small businesses, FreshBooks has grown significantly, employing between 251 and 500 people. The platform offers a comprehensive suite of tools, including invoicing, billing, expense tracking, and payroll, designed to streamline business operations and save time.
How Much Funding Has FreshBooks Raised?
- Debt Financing
- Amount Raised: USD 125,000,000
- Date: March 2025
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support global expansion and strategic acquisitions.
- Grant
- Amount Raised: USD 1,000,000
- Date: November 2022
- Lead Investors: SCALE AI
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance AI capabilities and innovation.
- Debt Financing
- Amount Raised: USD 125,000,000
- Date: August 2022
- Lead Investors: Bank of Montreal, JP Morgan
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support global expansion and strategic acquisitions.
- Series E
- Amount Raised: USD 80,750,000
- Date: August 2021
- Lead Investors: Accomplice
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand market reach.
- Debt Financing
- Amount Raised: USD 50,000,000
- Date: August 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen the balance sheet and provide financial flexibility.
- Private Equity
- Amount Raised: Not publicly disclosed
- Date: January 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support long-term growth and strategic initiatives.
- Corporate Round
- Amount Raised: Not publicly disclosed
- Date: August 2019
- Lead Investors: JP Morgan Chase
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance corporate partnerships and market presence.
- Series D
- Amount Raised: Not publicly disclosed
- Date: January 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product development and market expansion.
- Series B
- Amount Raised: CAD 57,000,000
- Date: July 2017
- Lead Investors: Georgian
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in North American expansion.
- Series A
- Amount Raised: USD 30,000,000
- Date: July 2014
- Lead Investors: Oak Investment Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial growth and expansion efforts.
Total Amount Raised: USD 537,750,000. Current Valuation: Not publicly disclosed.
Key Investors
- Morgan Stanley Expansion Capital
- Details: A division of Morgan Stanley that focuses on growth capital investments. It provides funding to companies with high growth potential.
- Investment Focus Areas: Growth capital investments.
- Notable Investments: Not publicly disclosed.
- Morgan Stanley Private Credit
- Details: A division of Morgan Stanley that provides private credit solutions. It offers customized financing solutions to companies.
- Investment Focus Areas: Private credit solutions.
- Notable Investments: Not publicly disclosed.
- J.P. Morgan
- Details: A global leader in financial services offering solutions in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and private equity. It is known for supporting the growth of small businesses and global expansion.
- Investment Focus Areas: Investment banking, financial services for consumers and businesses, financial transaction processing, asset management, private equity.
- Notable Investments: Various global financial services and technology companies.
- BMO Financial Group
- Details: A highly diversified financial services provider and the 8th largest bank by assets in North America. It offers personal and commercial banking, wealth management, and investment banking products and services.
- Investment Focus Areas: Personal and commercial banking, wealth management, investment banking.
- Notable Investments: Various sectors including technology, healthcare, and financial services.
- Accomplice
- Details: A venture capital firm that invests in early-stage technology companies. It focuses on providing capital to startups with high growth potential.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Early-stage technology startups.
What's Next for FreshBooks?
FreshBooks is poised for significant growth, driven by its recent $125 million debt facility. This funding will enable the company to expand globally, make strategic acquisitions, and invest in more regulated markets. With a presence in over 160 countries, FreshBooks is well-positioned to capture a larger market share and enhance its product offerings through acquisitions like Fastbill and Facturama.
Future fundraising opportunities seem promising, given the company's growth trajectory and the uncommitted accordion feature of the debt facility. This financial flexibility will support further expansion and acquisitions, ensuring FreshBooks remains competitive in the accounting software market.
However, challenges lie ahead. Navigating regulatory requirements in new markets, integrating acquired companies, and maintaining rapid growth while ensuring financial stability are critical hurdles. Despite these challenges, FreshBooks' strategic focus and robust financial backing position it well for continued success.
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