doola Raises $3M to Simplify US LLC Formation for Global Founders

Doola Secures $3 Million Seed Funding to Empower Global Entrepreneurs

Doola, a company dedicated to assisting international entrepreneurs in establishing U.S.-based businesses, has successfully raised $3 million in seed funding.

From StartPack to Doola: A Company's Evolution

Initially launched in 2020 as StartPack, Doola originated as a pivot from a previous venture known as Standups. The founding team quickly identified a significant need: a streamlined process for business setup.

Co-founder and CEO Arjun Mahadevan explained the impetus behind the change, stating, “We aimed to concentrate on product development, user engagement, and business growth.” He continued, “We envisioned a scenario where initiating a company could be achieved with a single click.”

The New York-based company developed a Minimum Viable Product (MVP) in September and promptly secured its first paying client. A recent rebranding effort saw the company transition from StartPack to the name doola.

Doola’s Comprehensive Suite of Services

Doola’s core objective is to provide comprehensive support throughout the incorporation process, enabling customers to “securely accept payments, establish credibility, maintain legal compliance, and increase profitability,” according to Mahadevan.

Specifically, doola offers services including company formation, acquisition of an EIN (Employer Identification Number), a U.S. business address, a U.S. bank account, access to U.S. payment processing, a complimentary tax consultation, U.S. tax assistance, a dedicated phone number, and $50,000 worth of startup benefits.

To date, numerous companies have successfully formed Limited Liability Companies (LLCs) through doola, even without possessing a U.S. Social Security number. The company is experiencing “profitable growth from a unit economics standpoint,” as noted by Mahadevan.

Doola’s Differentiators in the Market

Mahadevan emphasizes that doola distinguishes itself by offering more than just incorporation services; it provides ongoing support to its clients.

“We are not merely a formation service; we are a complete fintech solution,” he stated to TechCrunch. “Company formation serves as our entry point to construct an operating system for creators worldwide, encompassing formation, financial, and legal aspects, with continuous technical, educational, and personalized assistance.”

Doola also collaborates with partners like Amazon and Twilio to extend its service offerings where internal resources are limited.

Investment Details and Backers

Nexus Venture Partners spearheaded doola’s funding round, bringing the company’s total funding to $3.6 million. The startup previously participated in Y Combinator’s summer 2020 program.

Additional investors include Hustle Fund, XX, Psion Capital, and Translink Investment. A prominent group of angel investors also contributed, including Jacqueline Reses, former head of Square Capital; Dharmesh Shah, founder and CTO of HubSpot; Ankur Nagpal, founder of Teachable and Vibe Capital; Rohini Pandhi, product manager at Square and partner at Transparent Collective; Arjun Sethi, co-founder and investor at Tribe Capital; and Prasanna Sankar, co-founder of Rippling.

Future Plans and Team Expansion

Doola intends to allocate the newly acquired capital towards expanding its team. Currently, the company comprises 14 employees, including co-founder and CTO JP Pincheira, alongside Mahadevan.

Investment will also be directed towards product development and engineering initiatives.

The Growing Creator Economy and Doola’s Position

Ankur Nagpal highlighted the rapid expansion of the creator economy, with over 50 million individuals embracing the creator lifestyle in the past decade, and anticipates this trend will translate into business creation.

He believes doola is well-positioned to support these emerging global businesses, stating, “Doola simplifies the process of establishing a U.S.-based LLC, obtaining a U.S. bank account, and accessing payment products and financial services typically reserved for U.S. businesses.”

Nagpal further elaborated, “The true potential of this business lies in its ability to manage the often-overlooked operational aspects of business for creators and independent entrepreneurs globally—including incorporation, banking, taxes, and essential infrastructure.”

Industry Expert Endorsement

Jishnu Bhattacharjee, managing director of Nexus Venture Partners, shares this perspective and has joined doola’s board of directors as part of the investment.

“Creators and independent entrepreneurs prioritize their core skills and passions,” Bhattacharjee explained. “However, building a business requires managing essential backend functions, which often lack expertise, interest, or dedicated time.”

He concluded, “Doola is designed to address this challenge, allowing entrepreneurs to focus on their strengths while doola handles the rest.”