Toronto-based accounting software provider FreshBooks has raised an undisclosed strategic investment from JPMorgan Chase & Co (NYSE: JPM), a U.S. financial services firm.
A representative of JPMorgan Chase will join the board.
Led by CEO Mike McDerment, Freshbooks provides invoicing, time-tracking, expense management, online payments and other tools to small businesses and self-employed professionals. It currently has customers in 160 countries.
Bill Clerico, CEO of WePay, a JPMorgan Chase payments affiliate, said the deal will support FreshBooks’ growth while also serving his company’s small business clientele.
FreshBooks previously secured nearly $100 million in a 2017 Series B financing led by Georgian Partners and a 2014 Series A led by Oak Investment Partners.
Photo: Mike McDerment, co-founder and CEO FreshBooks.
FreshBooks Announces Strategic Investment from JPMorgan Chase
Toronto, CANADA – August 7, 2019 FreshBooks, a leading small business accounting software in America, with paying customers in 160 countries, today announced JPMorgan Chase & Co. (NYSE: JPM) has made a strategic investment in the company.
Since 2004, FreshBooks has helped more than 20 million people and established itself as one of the world’s most popular accounting software platforms for small businesses and self-employed professionals. The company differentiates itself by building ridiculously easy-to-use accounting software with a non-accountant user in mind and delivering best-in-class customer service.
“Our mission is to reshape the world to suit the needs of self-employed professionals and their teams,” said Mike McDerment, CEO and Co-founder at FreshBooks. “We see a significant opportunity to combine the strength and scale of JPMorgan Chase’s banking and payments capabilities with FreshBooks’ expertise in software design to create mass adoption for small businesses, and propel us closer to achieving that world.”
“FreshBooks is one of the smartest, easiest-to-use software options for small businesses, and we’re thrilled we can support their growth with this investment,” said Bill Clerico, Head of SMB Product for Chase Merchant Services and CEO of WePay, the integrated payments business of JPMorgan Chase. “Since earlier this year, our 4 million Chase for Business customers have been able to sign up for FreshBooks through our small business marketplace and we’ve seen lots of demand. Helping software companies like FreshBooks grow by serving our small business customer base is a key differentiator for us in the fast-growing integrated payments market.”
The investment from JPMorgan Chase follows two previous institutional funding rounds for FreshBooks, including a $30 million USD ($40M CDN) Series A funding round in July 2014, and a $43 million USD ($57M CDN) Series B funding round in July 2017.
As part of the investment, a JPMorgan Chase representative will be joining FreshBooks’ board of directors.
FreshBooks announced its completely redesigned and rebuilt platform in September 2016 and has since added more than 100 new apps and integrations to help customers automate more of their workflow. Integrations include G Suite by Google Cloud, Slack, Gusto, HubSpot, Shopify, MailChimp, ZenDesk, MileIQ, Proposify, Trello, Basecamp, Asana, and more. In February 2019, FreshBooks announced the addition of bank reconciliation and double-entry accounting to its software, enabling growing businesses to scale on FreshBooks with confidence and work seamlessly with an accountant.
FreshBooks is the #2 small business accounting software in America, with paying customers in 160 countries. The company has helped more than 20 million people process billions of dollars through its easy-to-use invoicing, time-tracking, expense management, and online payments features. Recognized with nine Stevie awards for best customer service in the world, the company’s mantra is to “execute extraordinary experiences every day.” FreshBooks is based in Toronto, Canada. Learn more at www.FreshBooks.com.
WePay connects the worlds of payments, software, and small business. As a leading provider of integrated payments processing, WePay helps small businesses and individuals get paid quickly and easily through software and applications like BigCommerce, GoFundMe, and Zoho. Acquired by JPMorgan Chase & Co. in December 2017, WePay thrives in a software-driven economy by translating payments and connecting software companies and their users seamlessly into the full range of banking services. WePay is headquartered in Redwood City, California and offers its services in the United States, Canada and the United Kingdom. For more information, visit wepay.com.
Lindsay Lapchuk, FreshBooks
Evelyn Tam, WePay
Jessica Francisco, JPMorgan Chase & Co.