The Hague-based Bubty secures an additional €3M to help companies mitigate freelancer misclassification risks

The Hague-based Bubty, a provider of Freelance Management Systems (FMS), announced on Monday that it has secured an additional $3.3M (approximately €3M) in seed funding from its existing investors.

The company will use the funds to accelerate its growth and scale its solution — Bubty Services, globally.

The announcement comes around eleven months after raising €1.73M in a Seed funding round.

Bubty: Managing flexible workforces

Founded in 2020 by Lee Willoughby and Benjamin Schriel, Bubty offers a Freelance Management System (FMS) that enables companies to onboard, manage, contract, and pay freelancers globally.

As regulations on worker classification grow stricter, the Dutch company is launching its new service, Bubty Services, worldwide.

This service ensures that companies follow local laws when hiring freelancers and independent contractors.

With automated screening and routing, the Dutch company helps businesses manage compliance and reduce the risk of misclassification.

If an independent contractor doesn’t meet the requirements, the company provides an Agent of Record (AOR) service. This means the Hague-based company acts as the legal intermediary between the company and tax authorities, ensuring that freelancers and independent contractors are hired correctly.

The Dutch company also protects clients from misclassification risks, so they won’t be liable for any compliance issues. At the same time, clients keep full control and flexibility over their freelance workers, claims the company.

Since its inception, the platform has gained international traction, particularly in the UK and U.S., where over one million freelancers are managed through the company.

“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,” says Lee Willoughby.