Lapbook, a startup payroll and accounting service that targets film and TV production companies, has secured a new round of funding as it seeks to expand its market share in Hollywood.
The company’s co-founders Ali Javid and Cameron Woodward told The Hollywood Reporter that they have raised $20 million from venture capital firm Bessemer Venture Partners and announced a secondary tender offer to sell a portion of the shares held by the company’s employees.
Wrapbook is currently valued at $750 million, down from the $1 billion valuation it announced a few years ago in November 2021 as part of a $100 million Series B round in a market environment before AI became all the rage for tech-focused companies.
The company’s app allows production staff to onboard projects, pay and track payments, and the founders describe it as a more modern alternative to some rivals that offer more services, including residual payment processing.
Among those established giants is Burbank-based Cast & Crew, which was founded in 1976 and acquired in 2018 by private equity firm EQT from payroll provider Silver Lake Partners, which paid a reported $700 million for the payroll provider in 2015. Burbank rival Entertainment Partners, a production workforce management giant also founded in 1976 and which owns Central Casting (yes, that’s where the phrase “from Central Casting” comes from), was also acquired by private equity giant TPG Capital in 2019.
Lapbook’s co-founders see the company as a third-tier entrant in Hollywood’s payroll and financial services field. Rivals have grown through add-on acquisitions over the years. Cast & Crew, for example, bought budget, workflow and timecard software provider Media Services in 2020 to bolster its offering.
Woodward and Javid say not being owned by a private equity firm has made Lapbook more efficient and given it room to grow without the expectation of exploitative financial relationships. Based in New York and West Hollywood but operating remotely, the company was founded in 2018 with three employees. In March 2021, the company raised $27 million from investors including Michael Ovitz, Andreessen Horowitz, Equal Ventures and Uncork Capital (earning investor Jeffrey Katzenberg praise for “adapting production finance services for the 21st century”). In November of the same year, the company announced it had raised $100 million in a Series B round led by Tiger Global Management.
The company has grown its headcount to about 280 this year, and with the new funding, it plans to grow that number to about 400. The company said four studios (it wouldn’t disclose which ones) have signed up to use its platform within the past year, and agencies including CAA and WME are using Wrapbook to track payment progress for their film and TV clients.
Mary D’Onofrio, Partner at Bessemer Venture Partners, said of the firm’s investment, “Lapbook’s technology fundamentally enhances the capabilities and impact of production finance teams. We have been pursuing this investment for years, recognizing its potential to reshape entertainment finance.”
Wrapbook says 1,000 companies currently use its product for film and TV payroll and accounting. “Wrapbook acts as a force multiplier for financial executives, production accountants and producers,” says Wrapbook CEO Ali Javid. “Our platform and advanced services model enable these critical team members to efficiently manage complex processes and strategically contribute to the success of productions.”
