ImpactAlpha, November 25 — The economic shock of the COVID pandemic has devastated small businesses – and driven many others to open one for the first time.
Austin-based online platform ZenBusiness helps businesses with fewer than 10 people launch and scale. The company says it has doubled customer acquisition since the onset of the pandemic; roughly nine in 10 of the company’s 80,000 clients are first-time entrepreneurs.
Recovery from the economic shocks of COVID-19, is “going to come down to small business formation and growth,” said Jim Breyer of Breyer Capital, a ZenBusiness investor.
ZenBusiness’s $55 million round was led by Cathay Innovation. Breyer Capital also participated, along with GreatPoint Ventures and Omega Venture Partners.
ZenBusiness was an early investment of Steve Case’s Rise of the Rest fund. Earlier this year, it acquired fintech platform Joust, another Austin company, to expand financial services to small businesses.