We launched Homebase six years ago to make work easier for local businesses and their teams. Today we take a big next step in that journey: we are launching Homebase Payroll and Cash Out, and announcing a $71M fundraise led by GGV Capital.
Small businesses are a critical driver in the economy, providing economic opportunity for millions and the majority of job growth in the U.S. But they are also the heart and soul of our communities. They bring us together and give our cities, towns, and neighborhoods their unique characters. Never has this been more obvious than in the past 15 months as our communities shut down during the pandemic.
I started Homebase to make life easier for my sister, Emily, who worked in local restaurants, and my childhood friends, Hunters and Todd, who started a restaurant in my hometown of Seattle. They all suffered from a shocking lack of technology; I wanted to make work easier for them and millions of others like them.
We’ve made a lot of progress on this mission, growing to serve more than 100k businesses and 1 million workers. We’ve tracked more than 2 billion hours. We’ve built tools to make every part of work easier, including time clocks, scheduling, messaging, hiring, onboarding, and compliance. But it’s never been harder to manage a local business team, and there is a lot more to do.
Today, we’re excited to announce another way to make running a small business easier: Homebase Payroll.
We are offering payroll services in 27 states, with more coming soon. We have built payroll from the ground up specifically for hourly teams, so busy managers can spend less time on data entry and worry less about errors. We automate payments and tax filings and make everything transparent, so there are fewer questions and headaches.
Eric, the owner of The Gear Attic, is one of many businesses using Homebase Payroll today. He told us, “I honestly have not thought about payroll since switching…which is the best endorsement I can give a platform designed to make you more efficient or take away a once tedious task. WE LOVE IT!”
We’re also launching Cash Out, which allows workers to access their earned wages before their next paycheck.
Hourly employees are often living paycheck-to-paycheck, and income has only become more volatile during COVID. With Cash Out, they can handle unexpected expenses without facing payday loans or overdraft fees. Early wage access has become a popular perk at large employers, and we think small business teams should have it too.
Cash Out has already saved millions of dollars in overdraft fees for Homebase users and brought a lot more peace of mind. As one user said, “I get paid weekly but can still easily get behind on bills. Cash Out helps me pay my bills on time so that I stay in control of my finances and maintain my credit score.”
Today we are also announcing a $71 million Series C financing led by GGV Capital.
They are big believers in the impact technology can have helping small businesses thrive, and we are excited to have partner Jeff Richards join our board. We are also thankful for the ongoing support from Bain Capital Ventures, Baseline Ventures, Bedrock Capital, Cowboy Ventures, and Khosla Ventures, and new investor PLUS Capital. This funding will enable us to invest deeply in every part of the Homebase product in our goal to make every part of the work experience easier.
Several new individual investors and advisors are joining Homebase as well, and each of them brings a special passion and expertise for small businesses and the future of work. They include Kat Cole, the former President and COO of Focus Brands, Jocelyn Mangan, the former COO of Snag and CPO of OpenTable, Mike Dinsdale, the former CFO of Gusto, Rachel Carlson, the founder of Guild Education, athletes Jrue and Lauren Holiday, and actor and author Matthew McConaughey.
They are in great company, as we have also grown our team by over 60% so far this year. In addition to our headquarters in San Francisco and Houston, we have expanded our footprint to Denver, Austin, Atlanta, and Toronto. Our team is filled with passionate, service-minded people who care deeply about improving work for everyone. And you can join us: we’re hiring!
As we start this next chapter of Homebase, I want to give the biggest thank you to the 100k+ incredible local businesses and their teams using Homebase. Running a small business has always been hard, and last year made it even harder. Thank you for all of your trust and feedback as we work to make it a little bit easier. Thank you for inspiring us every day with your grit, resilience, and dedication to serving your communities. We are excited to keep serving you for years to come.
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