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ScaleFactor

ScaleFactor

ScaleFactor is an Austin, Texas-based SaaS company offering services in bookkeeping and accounting.

OverviewStructured DataIssuesContributorsActivity
Contents

Founded by CEO Kurt Rathmann in 2014, ScaleFactor offers bookkeeping and accounting software. The software uses AI to automate accounting, tax, and finance services to save small to medium business owners money and time. They offer a flat fee to access the digital tools and services which start at $6,000 and reach $30,000 per year. Thomas Laffont, senior managing director at Coatue Management, speaking on their investment in ScaleFactor, said:

If you think of platforms like Shopify and Square, their taking individuals or small merchants and giving them the capabilities to do what was previously only for large companies. That's a huge trend we believe ScaleFactor plays in.

ScaleFactors software analyzes data from point of sale, bank accounts, credit cards and billing systems to automate record keeping and payroll. In November, 2018 ScaleFactor announced a partnership with Gusto - a payroll, benefits and human resources technology platform - to allow business to use both services and increase their back-end automation. They help companies pay their bills, maintain tax compliance, and build quarterly reports. ScaleFactor hired Eric Steinhoff in February 2019 to help expand into lending services to help those business whose books they keep.

ScaleFactor has been able to integrate with core software companies like Xero, Quickbooks, Gusto, Expensify, Salesforce, and Shopify to help business owners, and themselves, grow.

Funding
Angel Round

ScaleFactor completed an Angel Investment round in 2015 with $370 thousand raised.

Seed Round - TechStars Austin accelerator

ScaleFactor graduated the TechStars Austin accelerator in November 2017 with $2.5 million raised. Investors included TechStars Ventures, Next Coast Ventures, Matchstick Ventures, Flyover Capital, Firebrand Ventures and Edison Factury

Series A

ScaleFactor completed their Series A funding round in July 2018 with $10 million raised. Investors included Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital and Firebrand Ventures.

Series B

In January 2019, ScaleFactor completed their Series B funding round with $30 million raised. Investors were lead by Bessemer Venture Partners and included Firebrand Ventures, Canaan Parnters and Broadhaven Capital Partners. ScaleFactor said, during the round, it intended to use the funds raised to expand operations while exploring other products such as loans or insurance to existing clients.

Series C

In August, 2019, ScaleFactor completed their Series C funding round with $60 million raised. Coatue Management lead the round, and investors included Vulcan, Stripes Group, Next Play Capital, Firebrand Ventures, Canaan Partners, Broadhaven Capital Partners, Bessemer Venture Partners, Flyover Capital and Citi Ventures.

Ceasing operation

On June 23, 2020, Kurt Rathmann, CEO of ScaleFactor, met with his team to break the news that they were letting go half of its team members that day. He then announced that the company was ceasing a majority of its operations on August 28, 2020.

Timeline

June 25, 2020
ScaleFactor reports it is shutting down, after securing $100 million in capital during the past year from investors including Bessemer Venture Partners and Coatue Management.
August 8, 2019
Coatue Management, an early investor in Square and Shopify, led the Series C round, which also included existing investors Bessemer Venture Partners, Canaan, and Broadhaven Ventures.
July 2019
The new funding round follows a Series A round last July when ScaleFactor raised $10 million.
July 24, 2018
ScaleFactor, the Techstars alumnus that's selling accounting and payroll management software as a service, has raised $10 million in a new round of funding as it looks to scale up its sales and marketing efforts.

After graduating from TechStars' Austin accelerator, the company was able to nab $2.5 million in a seed financing round that included TechStars Ventures, NextCoast Ventures, and two Kansas City-based investment firms -- Firebrand Ventures and Flyover Capital.

With our foundation established, a big part of our Series A is how do we power the business owner past bookkeeping & accounting?

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Further Resources

Title
Author
Link
Type
Date

ScaleFactor: Online Bookkeeping, Taxes & Finance for Small Businesses

https://www.youtube.com/watch?v=5T74bqPPQVs

January 14, 2019

References

scalefactor.com
Is a
Company
Company
Organization
Organization

Company attributes

Industry
‌
Robotic process automation
Financial services
Financial services
Accounting
Accounting
Management
Management
Payroll
Payroll
Automation
Automation
Finance
Finance
...
Location
Austin, Texas
Austin, Texas
B2X
B2B
B2B
CEO
Kurt Rathmann
Kurt Rathmann
Founder
Kurt Rathmann
Kurt Rathmann
Corey Bach
Corey Bach
Pitchbook URL
pitchbook.com/profiles...167820-49
Legal Name
ScaleFactor
Accelerator
Techstars
Techstars
Accelerator Batch
‌
Techstars Class 88 - Austin 2017 Q1
Number of Employees (Ranges)
51 – 200
Number of Employees
100
Full Address
979 Springdale Road Suite 110 Austin, TX 78702 United States
Investors
Firebrand Ventures
Firebrand Ventures
Citi Ventures
Citi Ventures
Next Play Capital
Next Play Capital
Vulcan Capital
Vulcan Capital
‌
Broadhaven Ventures
Bessemer Venture Partners
Bessemer Venture Partners
Coatue Management
Coatue Management
Next Coast Ventures
Next Coast Ventures
...
Founded Date
January 1, 2013
Email Address
hello@scalefactor.com
Phone Number
+15129604470
Total Funding Amount (USD)
102,500,000
Latest Funding Round Date
August 2019
Glassdoor ID
4938175
CTO
‌
Francis Sullivan
CFO
‌
Rose Punkunus
Latest Funding Type
‌
Series C round
NAICS Code
541,511
Wellfound ID
scalefactor

Other attributes

Blog
scalefactor.com/scaleblog/
Company Operating Status
Closed
Country
United States
United States

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