Formations Raises $8M to Help Self-Employed Workers With Their Finances
The culture of side hustles, freelancing and self-employment has taken off during the pandemic as individuals try to gain more freedom and control over their workload and environment.
While there are both pros and cons of the gig economy, one thing that has to be consistently managed, whether working for a company or yourself, is finances.
That’s where Formations comes in. Formations is a CFO-as-a-Service platform for those that are self-employed.
The Bellevue-based company provides a financial management solution that automates certain financial tasks such as taxes, bookkeeping and payroll — essentially acting as your “personal CFO.” The company said it is addressing a shortage of certified public accountants (CPAs) that has left self-employed workers with fewer resources.
Formations announced Wednesday that it raised $8 million in Series A funding, which will help the company build upon the growth it has seen in the past couple of years.
“Solopreneurs have been left to figure things out on their own for too long despite their growing into the largest workforce in America, while the corporations have attracted all the technology and financial attention,” Formations co-founder and CEO Shahar Plinner said in a statement. “We are very excited to be moving onto the next milestone with our new funding and offer the burgeoning number of self-employed the right financial tools they require to build their own business from the start.”
Along with the funding round, Formations also announced a strategic partnership with Gusto, a San Francisco-based payroll and benefits company that works with smaller businesses. The new partnership will expand on Formations’ relationship with Xero, which serves as its accounting software.
The new funding will allow Formations to expand on its fintech solution and continue to provide the financial tools and support needed for those that are self-employed.
Formations has a few job openings currently available across departments.