Atlanta-based lease accounting software startup LeaseQuery has raised $40 million in a Series A round from Goldman Sachs.
LeaseQuery Founder and CEO George Azih said the investment will primarily be used to continue the startup's rapid growth and its mission to help accountants comply with the required accounting standards from the Financial Accounting Standards Board, the International Accounting Standards Board and the Governmental Accounting Standards Board. This is LeaseQuery's first formal investment, having been bootstrapped since 2011.
"For nonprofits and private companies, the next two years are a crucial time to establish new accounting best practices," he said. "In our recent survey, we learned that just 5% of private companies have completed their lease accounting transitions. We are especially looking forward to helping both public and private companies address their lease accounting challenges, and this new investment uniquely positions us to offer the best possible support to our clients."
2019 has been a record year of growth for the company; in 2018, the startup reached 708% year-over-year revenue growth and has grown from 500 company clients in 2018 to 1,000 today. Earlier this year, LeaseQuery opened an office in Birmingham and added more than 100 jobs at the facility. The startup currently has about 150 employees.
"We plan to continue to fill out our new 53,000 square foot office in Atlanta," Azih said.
Azih said Goldman Sachs was the right investor for the Series A round because it's a "best-in-class organization" and the partnership will help add more value to LeaseQuery's customers.
"Our clients are accountants, so it is important that we work with a known and well-respected firm that our clients can trust," he said.
To date, more than 10,000 accountants in public, private, nonprofit and government organizations use LeaseQuery's platform. The platform is designed to help accountants and other finance professionals eliminate lease accounting errors and touts itself as the first lease accounting software built by accountants for accountants.
"We’re seeing a rapidly-growing demand for our software, and requests from clients to help them solve other compliance-related challenges," Azih said. "We plan to continue to invest in building solutions that will make accountants' lives easier."
