Bubty, a Dutch company specialising in managing freelance engagements, has raised €3 million in seed funding to expand its latest solution, Bubty Services, globally. Founded in 2020 by Lee Willoughby and Benjamin Schriel, both 27, Bubty aims to tackle the rising risk of freelancer misclassification, a challenge faced by companies engaging independent contractors in over 190 countries.
With freelancers now making up nearly 46.6% of the global workforce—approximately 1.57 billion individuals—the need for accurate worker classification has grown critical. Misclassification occurs when freelancers or independent contractors are incorrectly treated as employees, potentially exposing businesses to legal and financial risks. Governments worldwide are increasing regulatory enforcement, imposing substantial fines and reputational risks for non-compliance. Companies in the U.S., including notable names like FedEx and Uber, have faced hefty penalties for such misclassification.
Bubty Services, the company’s newest offering, is designed to help companies comply with local laws while managing freelancer engagements. Through automated screening and compliance routing, Bubty Services evaluates the employment relationship between a company and its freelancers or independent contractors, ensuring it aligns with local regulations. If an independent contractor does not meet the necessary criteria, Bubty provides an Agent of Record (AOR) service, acting as a legal intermediary between the company and tax authorities and assuming responsibility for compliance. This indemnifies clients against misclassification risks, while they retain full control and flexibility over their freelance workforce.
Lee Willoughby, Co-founder of Bubty, said: “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.”
With a strong presence in the UK and U.S., where Bubty’s Freelance Management System (FMS) already supports over one million freelancers, the platform is growing rapidly. The new funding will help Bubty scale Bubty Services across its 190-country footprint, ensuring clients comply with increasingly complex classification regulations and reducing the administrative burden of managing a global freelance workforce.
Bubty’s all-in-one platform allows companies to manage the full lifecycle of freelance engagements, from onboarding and contracting to payments and compliance, enhancing their brand while minimising recruitment costs and time.
