ZenBusiness raises $200 million, minting it Austin's newest tech 'unicorn'

ZenBusiness — Austin's newest "unicorn" software company with a valuation of more than $1 billion — is ramping up for more growth.

The company said Tuesday that it has raised $200 million in its latest funding round, which values the company at $1.7 billion.

The deal was led by Oak HC/FT, with backing from SoftBank Vision Fund 2, and existing investors Cathay Innovation and Greycroft.

ZenBusiness also raised $55 million a year ago, and prior to that raised $15 million in 2019.

Founded in 2017 by former HomeAway executive Ross Buhrdorf, ZenBusiness offers a suite of digital tools centered around creating, building and running a business.

The company says its customers include entrepreneurs, gig workers, online sellers, real estate investors, artists and freelancers. The ZenBusiness platform has grown more than 400% since March 2020, and is now used by more than 200,000 entrepreneurs, the company said.

"We handle the ‘business stuff’ so our customers can focus on their passion and build the life they want, stress-free and without sacrificing their well-being,” said Buhrdorf, CEO of ZenBusiness.

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With the new round of funding, ZenBusiness will invest in product development, including in its app, which provides users with step-by-step directions, from how to form a limited liability corporation and create a website to recommendations about growing their business.

The company also will accelerate its financial tech capabilities with new features that let customers manage their finances by connecting them to their bank account and allowing them to send invoices, collect payments and file taxes.

In addition to the funding, ZenBusiness said billionaire investor and entrepreneur Mark Cuban will join the company as a spokesperson.

“As a serial entrepreneur, I understand the challenges that come with launching and running your own business,” Cuban said in a written statement. “ZenBusiness is that personal business coach, helping hundreds of thousands of entrepreneurs get their businesses off the ground.”

ZenBusiness employs about 250 people across the country, including 160 in Austin. The company went fully remote in March 2020 in response to the COVID pandemic. Employees now work from home or wherever they are based throughout the U.S.

The company is hiring in positions across the board, including in brand marketing, product marketing, engineering and design. Because the company is fully remote, it is hiring in Austin as well as nationwide.

The ZenBusiness funding round is among the biggest of 2021 for Austin-area companies. Other recent deals include Elevate Brands, which this week raised $55 million to acquire companies that sell their products on Amazon.com.

Last month, SigmaSense received $24 million to accelerate the deployment of its touchscreen technology to mobile phones, autos, laptops, digital signage and kiosks.

Also last month, Olea Edge Analytics received $35 million to expand its smart water management system.

Other deals include consumer finance firm Self Financial, which raised $50 million; health care technology firm Closedloop.ai, which received $34 million and medical tech firm OsteoCentric Technologies, which brought in $30 million.