Golden Recursion Inc. logoGolden Recursion Inc. logo
Advanced Search


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.

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.


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.
August 2019
ScaleFactor raises a $60,000,000 series C round from Bessemer Venture Partners, Broadhaven Ventures, Canaan Partners, Coatue Management, Firebrand Ventures, Next Play Capital, Stripes Group and Vulcan Capital.
July 2019
The new funding round follows a Series A round last July when ScaleFactor raised $10 million.
January 2019
ScaleFactor raises a $30,000,000 series B round from Bessemer Venture Partners, Broadhaven Ventures, Canaan Partners and Firebrand Ventures.
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?

July 2018
ScaleFactor raises a $10,000,000 series A round from Broadhaven Ventures, Canaan Partners, Citi Ventures, Firebrand Ventures, Flyover Capital and Next Coast Ventures.
November 9, 2017
ScaleFactor raises a $2,500,000 seed round.

Funding rounds


Further Resources


ScaleFactor: Online Bookkeeping, Taxes & Finance for Small Businesses

January 14, 2019


Brian Heater
December 22, 2020
Even in a non-hell year, running a successful startup is a tremendous lift. After the events of 2020, however, no doubt many already lean businesses are hanging on by the skin of their teeth. For every company that saw increased interest in their offerings during the pandemic, there were several that simply couldn't make it [...]
Omar Faridi
June 25, 2020
Crowdfund Insider
Payroll and bookeeping software provider ScaleFactor shuts down due to declining revenue following COVID-19 outbreak.
June 24, 2020
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
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.


Golden logo
By using this site, you agree to our Terms & Conditions.