AUSTIN, Texas--(BUSINESS WIRE)--ScaleFactor, the smart finance and accounting platform that enables businesses to operate in real-time, today announced a $10 million Series A funding round led by Canaan Partners alongside Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital, Firebrand Ventures and strategic angel investors. The new capital will be allocated to expanding ScaleFactor’s marketing and business development teams as well as investing heavily in enhancing technology offerings on its modern accounting platform for SMBs.
Founded by former ‘Big Four’ CPAs and with upwards of 850 percent year-over-year growth, ScaleFactor is positioned to become the financial operations suite of choice for the 19 million companies in the U.S. with under 100 employees.
This latest round of funding comes on the heels of ScaleFactor’s $2.5 million seed round in November 2017, participation in Techstars Austin Accelerator session in spring 2017 and a $370,000 angel round in 2015. Fueled by SMB demand for a seamless hub to integrate and manage all financial operations, ScaleFactor is experiencing rapid customer growth as it expands its team and operations.
Empowering small businesses to focus on the bottom line versus administrative tasks
“The small-business ecosystem is rife with stories of failure, and we want to curb that,” said Kurt Rathmann, CEO and founder of ScaleFactor. “Caught between the work they love and piles of financial administration, too many small business owners end up neglecting the work they excel at. The business flounders as a result. It’s time for that fate to end, and here at ScaleFactor, we’ve built the answer.”
ScaleFactor bridges the ‘survival gap’ that swallows up an estimated 80 percent of small businesses. Unable to afford enterprise-grade financial operations technology, and overcommitted to effectively track, budget and project finances using spreadsheets, small business owners often succumb to failure by fatigue. By automating taxes, inventory, invoicing, bill pay, payroll and 1099 management, and integrating with other core software like Xero, Quickbooks, Gusto, Expensify, Salesforce, Shopify and others, ScaleFactor becomes the reliable hub for all things finance—and enables business owners to focus on growth.
Investor Thoughts on ScaleFactor Series A Round
“ScaleFactor is one of the most thoughtful and complete platforms in all of SMB fintech,” said Michael Gilroy, who led the round from Canaan Partners. “The company has a massive opportunity to become the central hub of financial and business operations for SMBs, and I’m thrilled to partner with this team for the journey.”
“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,” said Luis Valdich, Managing Director, Citi Ventures. “In a world increasingly reliant on fast transactions and informed action, ScaleFactor’s technology couldn’t come at a better time.”
“With technological innovation comes complexity,” said Michael Sidgmore, partner at Broadhaven Ventures. “A lack of viable financial-integration options has left SMBs fighting to keep up, not only with the intricacies of their own businesses, but with evolutions in payments, blockchains and the like. ScaleFactor is positioned to become a new trusted resource for SMBs wishing not only to modernize, but to excel.”
“No other SMB financial platform has the deep expertise of the ScaleFactor team,” said Amos Schwartzfarb, managing director of TechStars Austin. “By combining an intuitive user experience with an intimate knowledge of what small business owners need from their financial systems, ScaleFactor surpasses anything else on the market.”
“One of the technology trends we remain focused on is the changing future of work, and we don't think the back office is immune to that,” said Thomas Ball, co-founder and managing director of Next Coast Ventures. “Back office operations are almost always a pain point for growing businesses, and we think ScaleFactor's technology will empower business owners to manage, track and budget their finances, allowing them to focus on scaling their business.”
ScaleFactor is the smart accounting and finance software that is changing the way modern businesses operate. By automating complex accounting tasks and translating financial information into usable business insights, ScaleFactor is enabling business owners, managers and entrepreneurs to focus on what they love—running and growing their business. Find out more about how ScaleFactor is solving the problems that businesses face every day at scalefactor.com.