- FreshBooks is said to have become the latest Canadian company to achieve a 'unicorn' status in 2021.
- The firm is known to sell cloud-based accounting software to small-scale enterprises.
- Started in a basement in 2003, FreshBooks has emerged as one of the leading software-as-a-service (SaaS) providers.
FreshBooks, which sells cloud-based accounting software to small businesses worldwide, has reportedly become the 14th Canadian company to get a 'unicorn' status in 2021.
The Toronto-based software seller secured a funding of US$ 130.75 million on Tuesday, August 10, bringing its estimated value to above US$ 1 billion.
Private technology companies that are valued at more than US$ 1 billion are referred to as 'unicorns'.
This development has drawn the attention of investors, who seem to be curious about the company’s plans of going public.
FreshBooks’ latest funding
FreshBooks has raised US$ 80.75 million in a round of Series E funding, while also garnering additional proceeds of US$ 50 million in debt financing.
The latest funding round was headed by seed-led venture capital firm Accomplice, with other participants such as JP Morgan, Bank of Montreal, Manulife and Gaingels.
After the funding round, FreshBooks CEO Don Epperson said that the funds will help the company assist digitally-enabled small businesses.
What is FreshBooks?
Started in a basement by co-founder Michael McDerment in 2003, FreshBooks has emerged as one of the leading software-as-a-service (SaaS) providers. The company claims that over US$ 60 billion invoices have been paid through its platform and over 24 million people have used FreshBooks since its inception.
FreshBooks seeks to make invoicing, payments and financial reporting easier. The company's software is used in over 160 countries and houses 500 employees worldwide.
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There is no official statement from Freshbooks about any plans for an initial public offering. However, as IPO frenzy continues across the world, the accounting software company could opt to go public at some point in the future. If and when it goes public, investors will be able to explore its stock investment options.
As the company aims to enter into strategic acquisitions and expand its business operations, becoming a publicly traded company could help FreshBooks raise proceeds for those goals.
Canadian software companies like Shopify Inc. (TSX:SHOP) and Lightspeed POS Inc. (TSX:LSPD) have become some of the top tech firms as they were able to expand their businesses by digitally enabling small business owners. Since FreshBooks also operates on similar grounds, it could grow further in future.