Hnry Completes $35 Million Series B Round

Hnry Completes Large Capital Raise

Context: Hnry, the tax management platform for self-employed folk, just secured $35 million in venture funding from their series B round.

Apparently, investors were blown away by their mission, vision and values. Tripling your revenue year on year can't hurt either.

Even Aussie cricketer Mitchell Starc got in on the action via Athletic Ventures.

That's a hell of an outcome in a capital environment with a difficulty level we haven't seen since the GFC.

And now that they're growing at a clip of 25% per month in Australia, investors will be salivating at their long-term total addressable market size and future unicorn status.

Our Take:

Productizing a service in the right market creates enormous value for users and investors.

Their value proposition which goes something like we save freelancers five hours a week worth of financial administration and about $236 a month in accountancy costs - Is stronger than most.

And paired with a user experience that a couple of contractors in our network suggested beats working with an accountant - their product-market fit is air-tight.

More than a decade earlier, Xero led the way with their general business accounting software. Now Hnry has niched down and found a new wedge.

What's cool about Hnry is they've removed the need for an accountant altogether. Whereas Xero is largely just a value add for accountants.

We see many other industries out there ripe for disruption too.

Many founders are tackling property management, with no clear winner yet, and property brokerage can't be far behind - maybe there's even a Hnry sized opportunity for property investor accounting software around the corner.

SMALLBUSINESS

Anna Ross Is A PR Alchemist

​Kester Black, Which you could say is a mix of luxury brand quality, discount retailer pricing and B-corp values, is in the news again.

Or, more specifically, their founder is - Anna Ross.

In this article, like many others, Anna shares parts of her and Kester Black's story.

What we find impressive here is how often Anna finds these opportunities. Run a quick google search, and you will see hundreds of press mentions.

Not bad for a small business with a turnover of ~$1,000,000.

You know as well as us that a business only exists once people know about it.

But even with the permission-less marketing platforms that social media offers today - the delta between knowing you need to be relevant and being relevant is large.

Yet Anna has managed to do that with Kester Black, going on half a decade now.

Our Take:

PR for PR's sake (i.e. making Mum and Dad proud) is largely wasted effort - there's always serendipity, but as a strategy, repetition is how you succeed.

When your angle of attack is media coverage, it takes more than one hit to make a meaningful difference to your business.

Anna gets this and nails it.

WHAT ELSE

• ​This will never not be true, a logo is not the correct first step into entrepreneurship.

• ​Short-form vertical video’s might be the marketing play of 2023.

• Companies are still raising money on crowdfunding platforms at absurd values. Based on People’s Coffee’s crazy 160x Ebitda multiple - this editor is a hexa-millionaire.

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