ScaleFactor

ScaleFactor

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

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.

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?

Funding rounds

Funding round
Funding type
Funding round amount (USD)
Funding round date
Investment
ScaleFactor funding round, August 2019
60,000,000
August 2019
4 Results
Results per page:
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People

Name
Role
LinkedIn

Brian Simmons

VP of Products

Corey Bach

Founder

David Loia

Chief Customer Officer

Eric Steinhoff

Senior VP of Lending

Francis Sullivan

Chief Technical Officer

Gary Forni

Chief Operation Officer

Kristen Johnson

Director of Customer Experience

Kurt Rathmann

Founder and CEO

Laarni Canoy, MBA, SPHR

Director of Talent Acquisition

Robert Gilbreath

Senior VP of Marketing

Yaya Zhou, CFA

Director of Finance

Further reading

Title
Author
Link
Type
Date

Documentaries, videos and podcasts

Title
Date
Link

ScaleFactor: Online Bookkeeping, Taxes & Finance for Small Businesses

January 14, 2019

Companies

Company
CEO
Location
Products/Services

News

Title
Author
Date
Publisher
Description
Omar Faridi
June 25, 2020
Crowdfund Insider
Payroll and bookeeping software provider ScaleFactor shuts down due to declining revenue following COVID-19 outbreak.
lalorek
June 24, 2020
SiliconHills
Last year, ScaleFactor made the Greater Austin Chamber of Commerce's A-List of Hottest Startups in the mid-sized category. On Tuesday, ScaleFactor announced plans to shut down after raising $103 million from investors - including $90 million in 2019. Its investors included Coatue Management, Bessemer Venture Partners, Canaan, Broadhaven Ventures, Firebrand Ventures, Vulcan, Stripes Group, and ...
Brent Wistrom
June 23, 2020
AmericanInno
After several years as one of Austin's fastest rising startups, ScaleFactor on Tuesday reportedly told its employees it will be shutting down in a few months.

References

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