Canopy's Accounting Practice Revolution Receives $35M Injection

Investors inject new capital to fuel Canopy’s development of cloud-based software solutions for public accounting firms

DRAPER, Utah--(BUSINESS WIRE)--Canopy, the leading cloud-based practice management platform for accounting professionals, today announced its $35M Series BB, led by Ten Coves Capital along with significant investments from current investors NewView Capital, Pelion Partners, Tenaya Capital, and Ankona Capital. This new funding will be used to further accelerate Canopy’s mission to become the default operating system for accounting firms.

“Canopy is focused on providing accounting firms a better way to manage their clients, their work, and optimize the productivity of their practices. Accountants are eager to transform their firms to deliver higher value advisory services and streamline the mundane parts of their business. It’s clear that legacy market solutions can’t enable this type of transformation. Modern accounting firms need cloud-based, user-friendly, mobile-accessible software that provides an integrated and holistic approach to managing their clients and work. This funding will be used to take our best-in-class practice management suite − which includes modules for client management, document management, workflow, and time & billing − to the next level, particularly with larger firms. We also plan to continue building integrations with many of the applications that accountants use, so Canopy can more effectively serve as the backbone of their practice,” explained Davis Bell, Canopy CEO.

More than ever, accounting firms are demanding better technology to streamline and automate their processes, affording them more time to advise clients and provide a better overall customer experience. Driving this demand are two key industry trends:

1. Talent Shortage: CPAs are facing a talent shortage and must do the same amount of work with fewer people. According to a recent study by the National Association of State Treasurers Foundation, online job postings for accounting and finance positions surged 84% between 2016 and 2020. Meanwhile, an estimated 31% of the finance and accounting workforce is over the age of 55, and 60% is over the age of 45; the industry is likely to face waves of retirement over the coming years.
2. Clients Demand Digital Experience: Clients of accountants expect a more streamlined, digital-first customer experience. A recent study of over one thousand small businesses found 78% would consider changing accountants to one who is using the latest technology.

“We were drawn to Canopy by its incredible product, strong revenue and customer growth, and vision to build a best-in-class, end-to-end practice management solution that helps accounting firms streamline operations and unlock efficiencies. We’ve seen how modern, cloud-based technology has revolutionized other professional services industries, and believe Canopy is well poised to capitalize on the large opportunity within the accounting market,” said Ned May, a Managing Partner at Ten Coves. “We are confident Canopy is going to emerge as the category leader in Practice Management, and beyond.”

About Canopy

Canopy is an award-winning, cloud-based practice management software suite designed to increase efficiency and boost revenue for accounting firms. It offers tools for client management, document management, workflow, and time & billing, as well as specialty compliance solutions that help accountants obtain IRS transcripts and resolve notices quickly. Canopy’s transcripts tool won CPA Practice Advisor’s top technologies 2021 award and its overall software was ranked in Digital.com’s best accounting practice management software in 2021. Canopy’s solutions are SOC2 certified and data encrypted to ensure personal information is secure. Learn more at www.getcanopy.com.

About Ten Coves Capital

Ten Coves Capital invests in innovative, high growth FinTech companies where its capital, network and decades of experience can help accelerate growth and value creation. Investing across payments, banking & lending, asset management, capital markets, and insurance & benefits, among other segments, the Ten Coves team has helped scale nearly 40 companies that are solving industry pain points, enabling workflows, and providing critical infrastructure to the largest financial institutions down to SMBs. For more information, visit tencoves.com.