Bubty raises $3.3 million to scale its solution for global freelancer misclassification

Bubty has secured an additional $3.3 million in seed funding to scale its newest solution, Bubty Services, globally. This service helps companies mitigate the risks associated with misclassification of freelancers and independent contractors (ICs) in over 190 countries.

As companies increasingly turn to freelancers and independent contractors to fill gaps in their workforce, the risk of worker misclassification rises. In 2024, there are an estimated 1.57 billion freelancers globally, representing nearly 46.6% of the global workforce, underscoring the growing need for proper classification. Misclassification occurs when freelancers or independent contractors are incorrectly treated as employees, often without the correct contracts or classification procedures, leading to potential legal and financial risks.

Global governments are intensifying enforcement of worker classification regulations, imposing heavy fines, legal consequences, and reputational risks for non-compliant businesses. In the U.S., for example, companies like FedEx and Uber have been penalized millions of dollars for misclassifying workers.

Founded in 2020 by Dutch entrepreneurs Lee Willoughby (27) and Benjamin Schriel (27), Bubty offers a Freelance Management System (FMS) that enables companies to onboard, manage, contract, and pay freelancers globally. Since its inception, the platform has gained international traction, particularly in the UK and U.S., where over one million freelancers are managed through Bubty.

With the increasing regulatory focus on worker classification, Bubty is expanding its newest service, Bubty Services, globally. This solution ensures that companies comply with local laws, when engaging freelancers and independent contractors. Through automated screening and routing, Bubty helps businesses navigate the complexities of compliance, minimizing the risk of misclassification.

Bubty Services evaluates the employment relationship between a company and its freelancers or independent contractors, in line with local regulations. If an independent contractor does not meet the necessary criteria, Bubty provides the Agent of Record (AOR) service,acting as the official legal intermediary between the company and tax authorities, Bubty assumes full responsibility for the compliant engagement of freelancers and independent contractors. Bubty indemnifies clients against potential misclassification risks, shielding them from non-compliance liability. At the same time, the client retains full control and flexibility over their freelance engagements.

“Governments worldwide are cracking down on freelancer misclassification, aiming to protect vulnerable freelancers and contractors. This places a significant burden on businesses, who risk legal and financial penalties for non-compliance. Many companies, as a result, avoid engaging freelancers altogether. With Bubty Services, we remove that fear, offering companies a compliant, flexible way to engage freelancers, while preserving their independence,”

said Lee Willoughby, Co-Founder of Bubty.

To scale Bubty Services to over 190 countries, Bubty has raised $3.3 million in additional seed funding from its existing investors.

About Bubty

Founded in 2020 by Dutch entrepreneurs Lee Willoughby (27) and Benjamin Schriel (27), Bubty is a leading Freelance Management System (FMS) that enables companies to manage their internal private pools of freelancers. With Bubty, businesses can control the entire lifecycle of freelancer engagements—from hiring and contracting to payment and compliance—all within a centralized platform. This allows companies to strengthen their brand and improve employer branding, while saving time and costs in freelancer recruitment and management. Bubty ensures 100% compliance with global labor laws and regulations, reducing legal risks and administrative burdens for companies operating in over 190 countries.