Venture capital-backed FreeAgent has broken into the US market with its first American acquisition and has landed a new investment round.
Online accounting software business FreeAgent has purchased Chicago-based financial forecasting software company 60mo. As part of the deal, 60mo’s team will be incorporated into FreeAgent’s new American division.
FreeAgent’s new investment partner is Lightbank, a Chicago venture capital firm which has portfolio companies including Onswipe, Groupon and Pawngo.
Edinburgh-headquartered FreeAgent was founded in 2007 by Ed Molyneux, Olly Headey and Roan Lavery and the company’s first funding was from serial investor and angel Robin Klein of The Accelerator Group.
Since then FreeAgent has secured funding from SM Trust and Torch Partners and has netted over £3 million in external funding to date.
Molyneux comments, ‘I’m delighted that we are being joined by an expert team with a wealth of knowledge in the US accounting software market, together with the tremendous boost of having Lightbank on board.
‘As FreeAgent continues to grow, we will look to create new jobs in both the US and the UK and we will be identifying other international markets to expand into.’
In the last 12 months FreeAgent has tripled its UK staff numbers and announced a deal with Barclays which allows its customers to have their bank data automatically updated in their FreeAgent account.
Paul Lee, partner at Lightbank, adds, ‘FreeAgent has already built a rapidly growing business focused on providing UK freelancers and companies with incredibly empowering software.
‘Our investment is the first step in bringing that product and methodology to the US market.’