Homebase has successfully raised $157 million over four funding rounds, achieving a valuation of over $500 million. The platform offers a comprehensive suite of tools for managing hourly employees, including scheduling, time clocks, payroll, and team communication.
Keep reading to explore the intricacies of Homebase's fundraising journey and the investors backing this versatile platform.
What Is Homebase?
Homebase, founded by John Waldmann and Rushi Patel, is dedicated to making local business teams unstoppable. Established in 2015, the company operates from multiple locations, including Denver, Houston, and San Francisco.
With a workforce of 201-500 employees, Homebase offers a comprehensive suite of tools designed to simplify employee scheduling, time tracking, payroll, and other HR tasks for small businesses. Their platform serves over 100,000 small businesses, helping them manage their teams more efficiently.
Homebase's mission is to empower local business teams by providing essential tools for seamless operations. Their all-in-one solution includes features for employee scheduling, time clocks, payroll, hiring and onboarding, team communication, and HR compliance.
How Much Funding Has Homebase Raised?
- Series A
- Amount Raised: $6,000,000
- Date: August 2016
- Lead Investors: Khosla Ventures, Baseline Ventures, Cowboy Ventures
- Motivation Behind the Round: To fund sales and marketing efforts, hire additional staff, and continue developing features that address scheduling-related problems for small businesses.
- Series B
- Amount Raised: $20,000,000
- Date: June 2018
- Lead Investors: Bain Capital Ventures
- Motivation Behind the Round: To support Homebase's mission to help small businesses hire, schedule, and manage hourly workers more effectively.
- Series C
- Amount Raised: $71,000,000
- Date: July 2021
- Lead Investors: GGV Capital
- Motivation Behind the Round: To expand Homebase's products and services, particularly in HR and payroll, to better serve small business owners and hourly workers.
- Series D
- Amount Raised: $60,000,000
- Date: April 2024
- Lead Investors: L Catterton Growth
- Motivation Behind the Round: To continue developing financial services products and AI-enhanced features, such as automated payroll capabilities and automated tip management.
Total Amount Raised: $157,000,000. Current Valuation: $500,000,000.
Key Investors
- Y Combinator
- Details: Y Combinator is a startup accelerator that provides seed funding, advice, and connections to early-stage startups. It has been instrumental in the growth of numerous successful companies.
- Investment Focus Areas: Technology, software, internet services
- Notable Investments: Airbnb, Dropbox, Stripe
- L Catterton Growth
- Details: L Catterton Growth is a private equity firm specializing in consumer-focused growth investments. It has a strong track record of helping companies scale and achieve market leadership.
- Investment Focus Areas: Consumer products, health and wellness, retail
- Notable Investments: Peloton, ClassPass, Vroom
- Emerson Collective
- Details: Emerson Collective is an organization dedicated to social change, founded by Laurene Powell Jobs. It invests in companies and initiatives that address critical social issues.
- Investment Focus Areas: Education, immigration reform, environment
- Notable Investments: AltSchool, Axios, Ozy Media
- Bain Capital Ventures
- Details: Bain Capital Ventures is the venture capital arm of Bain Capital, focusing on early to growth-stage investments. It supports companies across various sectors with strategic guidance and capital.
- Investment Focus Areas: Enterprise software, infrastructure software, fintech
- Notable Investments: LinkedIn, DocuSign, Jet.com
- Khosla Ventures
- Details: Khosla Ventures is a venture capital firm founded by Vinod Khosla. It invests in transformative technology companies across multiple sectors.
- Investment Focus Areas: Technology, healthcare, sustainability
- Notable Investments: DoorDash, Square, Impossible Foods
What's Next for Homebase?
Homebase stands at the cusp of significant growth opportunities. With its recent $60 million Series D funding, the company is poised to expand its customer base beyond the current 100,000 small businesses. The development of additional financial services products and AI-enhanced features, such as automated payroll capabilities, presents a substantial opportunity to further enable small businesses. The market for SMB tech for frontline or hourly workers is vast, affecting over 55% of the workforce, indicating a significant potential for growth.
Future fundraising efforts could be aimed at scaling the business, enhancing product offerings, and possibly expanding into new markets or verticals. Given the successful Series D round, Homebase's strong track record could attract further investments. However, the company faces challenges such as competition from other market players like Workstream and Salt Labs, and the difficulty of raising capital in a challenging economic environment. Continuous innovation and improvement of product offerings will be crucial for Homebase to stay ahead of competitors.
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