Bubty Secures €3M in Seed Funding to Address Global Freelancer Misclassification Risks

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The Hague-based Bubty, a leading provider of Freelance Management Systems (FMS), announced today it has raised an additional €3 million in seed funding from its existing investors. This funding follows an initial €1.73 million round secured nearly a year ago and will drive the company’s global expansion of its compliance-focused solution, Bubty Services.

Scaling Compliance Solutions for Freelance Management

Founded in 2020 by Lee Willoughby and Benjamin Schriel, Bubty’s Freelance Management System (FMS) allows businesses worldwide to onboard, manage, contract, and pay freelancers effectively. In response to increasing government regulations on worker classification, Bubty Services now offers robust compliance tools designed to protect companies from freelancer misclassification risks.

Through automated compliance screening, Bubty helps clients meet local labor laws for hiring freelancers and independent contractors. In cases where a contractor may not meet classification requirements, Bubty provides an Agent of Record (AOR) service, acting as a legal intermediary between clients and tax authorities to ensure correct hiring practices. This approach enables businesses to work with freelancers flexibly, without the risk of misclassification-related penalties.

Mitigating Compliance Risks for Global Clients

The platform has gained traction internationally, particularly in the UK and the US, where Bubty currently supports over one million freelancers. As global authorities intensify their focus on freelancer protections, companies face growing compliance challenges and potential legal repercussions. Bubty’s solution allows businesses to navigate these challenges seamlessly while maintaining full control and flexibility over their freelance workforce.

“Governments worldwide are cracking down on freelancer misclassification, aiming to protect vulnerable freelancers and contractors,” said Lee Willoughby, Co-Founder of Bubty. “For many companies, this risk deters them from engaging freelancers altogether. Bubty Services provides a compliant, flexible solution, allowing businesses to engage freelancers with confidence while preserving their independence.”

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