April 13, 2022
Formations Raises $8M Series A
Today we announced the closing of our $8M Round A funding, led by Arthur Ventures. First and foremost, we want to extend our heartfelt gratitude and appreciation to our customers who trust us to help them maximize their financial well-being and achieve financial longevity for their business. These early adopters of our solution help pave the way for millions of self-employed individuals by showing them that there’s a different way to run their businesses and manage their financials.
It’s not easy being among the first to challenge the status quo, especially when that means trusting a new solution with the future success of your business and finances. It requires vision, fortitude, an entrepreneurial spirit, and the diligent pursuit of improvement and growth. These are only some of the characteristics shared by our customers, the solopreneurs, without whom we would not be here today. These traits have made each of them successful in their own endeavors and today we are grateful to be achieving continued success together. From the entire Formations Team, thank you!
As we grow and overcome new challenges at Formations, we have found clarity and purpose in identifying some of the things we are not. Formations is not another accounting solution or a digital bookkeeping replacement. What we are doing, is developing and teaching a new and innovative way to build and run a business of one. Like any truly new enterprise or uncharted path, we believe that our journey, and that of our customers, begins with a change in mindset.
The current and most visible models for running a business of one are suboptimal at best and completely broken at worst. Today the self-employed are fractured and rely on outdated practices and tools that leave the vast majority to settle for the bare minimum government defaults, which pale in comparison to the standard benefits widely available to their W2 counterparts across corporate America.
Formations is set on leveling the playing field for the self-employed. The methodology that we are pioneering puts businesses on a path of optimization that leads to stability, increases visibility, and maximizes benefit contributions across the board. Corporate America figured these things out long ago with the help of its legal and finance departments. The solopreneur, however, has been left to throw away their hard-earned money on an unfair share of taxes rather than investing in their business or putting away savings for retirement. Heightened awareness and better education are a great start, but when independent workers are empowered to take action and begin seeing themselves as business owners and entrepreneurs, not just freelancers, contractors, consultants, and free agents, dramatic changes are inevitable.
In the last two years alone, we’ve witnessed countless success stories of Formations customers transforming the way they run their businesses and in turn, saving thousands of dollars in taxes and optimized financials, putting money away for retirement, and growing their confidence in making informed financial decisions. We’ve also seen customers who have had a hard time adopting our solution, making it apparent that at the moment, Formations might not be the right solution for everyone. One of our key investments with this funding round will be to make Formations easier to adopt and more accessible for a growing number of self-employed professionals, no matter their financial aptitude or level of income.
Our team is excited for the road ahead and focused on our mission to maximize the financial well-being of every self-employed individual in the United States. The independent workforce in America deserves the peace of mind that every W2 employee enjoys without having to give up on their dreams and independence.
We want to thank our investors, our partners, and lastly our team – the founding members of Formations who are helping us bring this vision to life every day. #WeMakeOurOwnReality
– Shahar Plinner, CEO
Make 2022 your best year yet and schedule a free consultation with one of our tax experts today. A 10-minute consultation could save you $10K!