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B12 raises $ 15.7 million to become Shopify for professional services companies – TechCrunch


When it comes to the digital world, many professional service companies are still struggling to catch up, especially smaller players.

Today, B12, a startup that aims to help small professional services organizations such as legal and accounting firms or mortgage brokerages more easily accept payments online and establish a digital presence in general, announced that it raised 15.7 million dollars in financing led by Tola Capital.

Breyer Capital, General Catalyst, Naval Ravikant and others also put money in the round, bringing the total funding for B12 to $ 28.1 million.

B12 co-founder and CEO Nitesh Banta is a former General Catalyst investor. their digital identity and customer relationships ”and give people a way to buy services online. It helps these businesses to build a website, effective SEO, email marketing / automation, online planning and, of course, online payments and invoicing.

Banta said he was inspired to start the business because his own father owned a small business.

New York-based B12 promotes itself as an “all-in-one solution that helps professional services companies establish, manage and grow their businesses online.” It claims to allow customers to set up within 30 days and help them compete with bigger online platforms like LegalZoom, Better and Fiverr. Banta compares B12 to Shopify and Toast, helping stores and restaurants compete with Amazon and DoorDash, respectively.

“We believe small businesses deserve to be successful online,” the executive told TechCrunch. “His a trend that I’ve seen more broadly and we think professional services is the next category that needs a facilitator for SMEs, and that’s really what we’re trying to do.

Image credits: B12

So far more than 150,000 companies have joined B12 and the startup has “Thousands” of paying customers. Revenue has grown “more than 50 times” since the company was funded in 2016. From January to August 2021, the monthly payment volume on B12 increased “15.2 times,” according to Banta.

As a SaaS company, B12 makes money by selling its software through a subscription – starting at $ 29 per month and up to $ 599, depending on the customer’s subscription.

Over time, B12’s model evolved as the pandemic accelerated everything digital, including payments.

“For a long time we have really focused on this web presence space and we are very happy to share with the world this payment functionality as being a really unique way for this segment to work with their customers online,” said Banta. at TechCrunch. .

General Catalyst CEO Larry Bohn has believed in B12 since its inception. The company first invested in the business in 2016, leading its funding round of $ 12.4 million. He said his company had a long history with the founding team of B12 (especially Banta) and believed that they “turned out to be efficient operators”.

“We also have a lot of experience in this industry, having led investments in Big Commerce and more, and believe that B12 is uniquely positioned to help professional services companies in their digital transformation,” he said. written by e-mail.

In his view, the business model is unique in that it helps professional services companies grow online by using artificial intelligence “to fuel their go-to-market service model,” which he believes. , according to Bohn, gives companies “the latest technology, but with an easy approach to implementation.”

Aaron Fleishman, Partner at Tola Capital, agrees that B12 builds and activates businesses to provide their clients with “a seamless experience” – from signing contracts with eSignatures to online payment for services.

B12 plans to use the new funding to accelerate its growth, complete new hires and continue to develop its product line. Along with the announcement of its latest raise, the startup is also today unveiling a new “Customer Engagement” product designed to help professional services companies connect with their customers, deliver services and automate administrative tasks. so that they can sell online from a centralized platform ”.

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