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 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
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.
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.
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.
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.
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.
The new funding round follows a Series A round last July when ScaleFactor raised $10 million.
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?
VP of Products
Chief Customer Officer
Director of People
Senior VP of Lending
Chief Technical Officer
Chief Operation Officer
Director of Customer Experience
Founder and CEO
Laarni Canoy, MBA, SPHR
Director of Talent Acquisition
Senior VP of Marketing
Yaya Zhou, CFA
Director of Finance
Documentaries, videos and podcasts
ScaleFactor: Online Bookkeeping, Taxes & Finance for Small Businesses
January 14, 2019