b12 Raises $15.7M to Empower Professional Services
Digital Transformation for Professional Services: B12 Secures $15.7 Million
Many professional service firms, particularly smaller ones, are still navigating the complexities of the digital landscape.
B12, a startup dedicated to assisting these organizations – including law firms, accounting practices, and mortgage brokerages – in accepting online payments and establishing a robust digital presence, has recently announced a $15.7 million funding round. This round was spearheaded by Tola Capital.
Investment Details and Background
Breyer Capital, General Catalyst, Naval Ravikant, and other investors also participated in this funding initiative. This brings B12’s total raised capital to $28.1 million.
Nitesh Banta, co-founder and CEO of B12, previously served as an investor at General Catalyst from 2010 to 2015. He partnered with MIT alumnus Adam Marcus in 2015 to establish B12, with the core objective of empowering small professional service firms to manage their digital identity and client relationships effectively.
Comprehensive Digital Solutions
The company provides a suite of tools designed to facilitate online service sales. These include website development, SEO optimization, email marketing and automation, online appointment scheduling, and, crucially, online payments and invoicing.
Banta’s inspiration for founding B12 stemmed from observing his own father’s experiences as a small business owner.
B12 positions itself as an “all-in-one solution” for professional services firms seeking to establish, operate, and expand their online businesses. They claim to onboard clients within 30 days and enable them to effectively compete with larger online platforms like LegalZoom, Better, and Fiverr.
A Shopify and Toast Analogy
Banta draws a parallel between B12 and companies like Shopify and Toast, which empower stores and restaurants to compete with industry giants such as Amazon and DoorDash.
“We believe small firms deserve to succeed online,” Banta stated to TechCrunch. “This is a trend I’ve observed broadly, and we see professional services as the next sector requiring an SMB enabler – which is precisely what we aim to provide.”
Growth and Customer Base
Currently, over 150,000 companies have registered with B12, and the startup boasts “thousands” of paying customers.
Revenue has experienced “over 50x” growth since the company’s 2016 funding round. Monthly payment volume on the B12 platform increased by “15.2x” between January and August 2021, according to Banta.
Subscription-Based Revenue Model
As a SaaS company, B12 generates revenue through a subscription model. Plans range from $29 per month to $599, depending on the features selected.
Adapting to a Digital-First World
B12’s business model has evolved in response to the accelerated shift towards digital solutions, particularly in payments, driven by the pandemic.
“We have long concentrated on establishing a strong web presence, and we are thrilled to introduce our payments feature as a unique solution for this segment to interact with their clients online,” Banta explained to TechCrunch.
Investor Confidence
Larry Bohn, Managing Director at General Catalyst, has been a supporter of B12 since its inception. The firm initially invested in the company in 2016, leading its $12.4 million funding round.
He highlighted his firm’s longstanding relationship with the B12 founding team, particularly Banta, and their demonstrated operational effectiveness.
“We also possess significant experience in this industry, having invested in companies like BigCommerce, and believe B12 is uniquely positioned to assist professional service businesses with their digital transformation,” Bohn stated via email.
AI-Powered Go-to-Market Strategy
Bohn believes the company’s approach is distinctive in its use of artificial intelligence to enhance the go-to-market strategy for professional services, providing businesses with cutting-edge technology and a simplified implementation process.
Aaron Fleishman, partner at Tola Capital, concurred that B12 streamlines operations for firms, delivering a seamless client experience – from e-signature contract signing to online service payments.
Future Plans
B12 intends to utilize the new funding to accelerate growth, expand its team, and further develop its product offerings. The company also unveiled a new “Client Engagement” product designed to facilitate client communication, service delivery, and administrative automation, enabling professional services firms to manage online sales from a centralized platform.