ScaleFactor, a smart finance and accounting platform, has received $10m in a Series A led by Canaan Partners.
Other participants to the round included Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital, and Firebrand Ventures. Strategic angel investors also made commitments.
ScaleFactor integrates with existing cloud software to provide automation tools for bookkeeping, tax compliance, invoicing, bill paying and financial analysis. The solution is used by 29 million small businesses within the US. Austin-based ScaleFactor is powered by machine learning to help remove cycle times, and creates real-time accounting information.
To help businesses with their tax compliance, ScaleFactor provides a compliance calendar to help track and manage federal and state compliance requirements and upcoming deadlines. All tax information is protected through the secure software and clients can access a tax support team to get reassurance with compliance needs.
Capital from the round will be put towards expanding ScaleFactor’s marketing and business development teams. It will also be used to enhance its technology for SMBs.
Citi Ventures managing director Luis Valdich said, “By using machine intelligence and automation to address critical issues like cash flow, compliance and payroll, ScaleFactor removes the friction from SMB finance and delivers insights to time-starved small business owners,” “In a world increasingly reliant on fast transactions and informed action, ScaleFactor’s technology couldn’t come at a better time.”
This series comes just months after ScaleFactor closed its $2.5m seed round. The round which closed in November, received support from Next Coast Ventures, Techstars Ventures, Firebrand Ventures, Matchstick Ventures, Edison Factory and Flyover Capital.
Prior to the seed round, the company had been a part of Techstars Austin Accelerator session in spring 2017 and picked up a $370,000 angel round in 2015.
Canaan is a very active investor in the FinTech market, having made six pervious investments into the space this year. Most recently, the firm led the $14.1m investment into stock market and ownership mobile app Bumped. The firm supplied $11.7m of funding into the company, which is looking to use the capital to grow its sales and marketing teams.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
