B12 raises $15.7M to become the Shopify for professional services firms – TechCrunch


When it comes to the digital world, many professional service firms are nonetheless working to get caught up — particularly the smaller gamers.

Today, B12, a startup that’s centered on serving to these smaller professional service organizations resembling legislation and accounting firms or mortgage brokerages extra simply settle for on-line funds and construct a digital presence usually, introduced it has raised $15.7 million in funding led by Tola Capital. 

Breyer Capital, General Catalyst, Naval Ravikant and others additionally put cash in the spherical, which brings B12’s complete funding to $28.1 million.

B12 co-founder and CEO Nitesh Banta is a former investor at General Catalyst — having labored at the agency from 2010 to 2015. He teamed up with MIT grad Adam Marcus in 2015 to discovered B12 with the mission of serving to small professional service firms “own their digital identity and customer relationships” and provides individuals a method to purchase services on-line. It does issues like assist these firms with constructing an internet site, efficient search engine marketing, e mail advertising/automation, on-line scheduling and, in fact, on-line funds and invoicing.

Banta mentioned he was impressed to begin the firm as a result of his personal father was a small enterprise proprietor.

New York-based B12 markets itself as an “all-in-one solution that helps professional services firms establish, run, and grow their business online.” It claims to get clients arrange inside 30 days and assist them compete towards bigger on-line platforms resembling LegalZoom, Better and Fiverr. Banta likens B12 to Shopify and Toast serving to shops and eating places, respectively, compete with the likes of Amazon and DoorDash. 

“We believe small firms deserve to succeed online,” the govt informed W3Techy. “It’s a trend I’ve seen more broadly and we think professional services is the next category that needs an SMB enabler, and that’s really what we’re trying to do.”

Image Credits: B12

So way over 150,000 corporations have signed up for B12 and the startup has “thousands” of paying clients. Revenue has grown “over 50x” since the firm’s 2016 funding. From January to August 2021, month-to-month fee quantity on B12 has elevated “15.2x,” in accordance to Banta.

As a SaaS firm, B12 makes cash by promoting its software program through a subscription — beginning at $29 a month and up to $599, relying on what a buyer indicators up for.

Over time, B12’s mannequin has developed as the pandemic accelerated digital all the pieces, together with funds.

“For a long time, we’ve really focused on this web presence space and we’re super excited to share with the world this payments feature as being a really unique way for this segment to work with their customers online,” Banta informed W3Techy.

General Catalyst Managing Director Larry Bohn has been a believer in B12 since its early days. The agency first invested in the firm in 2016, main its $12.4 million funding spherical. He mentioned his agency had an extended historical past with the founding crew of B12 (notably Banta) and believed they “have proven to be effective 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 service businesses with their digital transformation,” he wrote through e mail.

In his view, the firm’s mannequin is exclusive in that it helps professional service companies develop on-line by utilizing synthetic intelligence “to power their go-to-market model of service,” which Bohn mentioned provides corporations “the latest technology, but with a radically easy approach to implementation.”

Aaron Fleishman, companion at Tola Capital, agrees that B12 units up and prompts firms to give their shoppers “a seamless experience” — from signing contracts with eSignatures to paying on-line for services. 

B12 plans to use the new financing to speed up development, do some hiring and proceed constructing out its product suite. In conjunction with saying its newest elevate, the startup can be revealing right now a brand new “Client Engagement” product designed to assist professional services firms join with shoppers, provide services and automate administrative duties “so they can sell online from a centralized platform.”


Source: techcrunch.com