ZenBusiness, an Austin, Texas-based company that specializes in serving micro-businesses, announced late last week that it has closed its first acquisition. The company has purchased fintech platform Joust in a move that will bring Joust’s business banking features to the ZenBusiness platform, and enable the firm to re-launch as ZenBusiness Money later this year.
The terms of the acquisition were not disclosed.
CEO and co-founder of ZenBusiness Ross Buhrdorf called the acquisition an opportunity to extend its “mission to provide the nation’s 57 million micro-businesses with exceptional and friendly tools that simplify the process of forming and running their business.” Founded in 2015, ZenBusiness helps entrepreneurs complete the necessary filing and paperwork to ensure compliant formation of their business, and provides a variety of additional services – from identity theft protection and business management tools – to help micro-businesses grow and expand.
Also based in Austin, Texas, Joust offers merchant services and business banking for entrepreneurs, freelancers, and the self-employed. The company, which merged with LoanDolphin earlier this year to scale mortgage reverse auctions, was a finalist at the 2020 SXSW Innovation Awards, and raised $11 million in funding prior to its acquisition by ZenBusiness. Joust was launched in 2017.
“We believe all entrepreneurs should have access to the same banking services reserved for large companies,” former CEO and Joust co-founder Lamine Zarrad said. “By bringing our financial tools to the ZenBusiness platform, we will quickly scale up and empower even the smallest businesses by simplifying and strengthening their daily operations while protecting their interests.”
ZenBusiness has raised $19.5 million in funding from 11 investors including Greycroft and Lerer Hippeau. The company was featured last December by The Jeruslem Post in its look at the top seven business formation services in the U.S.