Squire Triples Valuation to $250M - Barbershop Tech Startup

Squire, a company providing software solutions for barbershops, has secured $59 million in funding, with Iconiq Capital leading the investment. This funding round consists of $45 million in equity and an additional $15 million in debt financing.

This new investment follows Squire’s previously completed $34 million Series B round, which was spearheaded by CRV. As a result of this latest financing, Squire’s valuation has increased significantly, rising from $85 million in June to $250 million currently. Additional investors participating in this funding include Tiger Global and Trinity Ventures.

According to information obtained by TechCrunch, Squire experienced a remarkable surge in revenue, growing from zero in March – when barbershops were widely closed – to a range of $10 million to $20 million in annual recurring revenue (ARR) within just ten months. This growth demonstrates a shift towards digital technology as the foundation for the next generation of barbershops, moving away from traditional, offline methods.

“We experienced incredibly rapid growth,” explains co-founder Dave Salvant in an interview with TechCrunch.

Salvant, along with Squire’s other co-founder, Songe LaRon, launched the business in 2016 with a focus on providing a back-end management tool for independent barbershops. Squire’s platform enables businesses to manage appointments, implement customer loyalty programs, and facilitate contactless and cashless payments. The company highlights that barbershop operations present unique complexities compared to many other small businesses, due to multiple transactions involving various service providers and customers potentially utilizing different services from different barbers within a single visit.

Squire addresses these complexities by offering a point-of-sale system designed to streamline these often-confusing transactions.

The COVID-19 pandemic has created significant challenges for small and medium-sized business owners, often making it more difficult to obtain loans or financing. Salvant states that Squire secured $15 million in debt financing to develop a banking-as-a-service offering specifically for these business owners.

“Traditional financial institutions often overlook this market,” Salvant noted. “We believe there’s a substantial opportunity to provide these owners with valuable financial tools.”

Looking ahead, Squire intends to expand its operations into new international markets, including Australia, Canada, and the United Kingdom. The majority of the raised capital will be allocated to recruiting additional sales and marketing personnel.

Currently, Squire employs a team of 100 individuals.