Make back office administrative work easier and you will be rewarded.
That would seem to be one takeaway from ScaleFactor's $10 million Series A round Tuesday.
The startup, founded in 2013, makes software for accounting and finance that automates a bunch of tasks to help the biz flow more efficiently and churn out insights you might not otherwise pick up on.
The new round was led by Westport, Conn.-based Canaan Partners, with additional investment from Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital, Firebrand Ventures and a few other individual and strategic investors. ScaleFactor previously raised a $2.5 million seed round in November last year, which followed their run at Techstars and a $370,000 angel round back in 2015.
ScaleFactor's software is largely aimed at small- and mid-sized companies that want to cut time and effort from their bookkeeping and payroll tasks. It was kind of a natural fit for founder and CEO Kurt Rathmann, a former CFO at KNS Communications.
“The small-business ecosystem is rife with stories of failure, and we want to curb that,” Rathmann said in a news release. “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.”
Citi Ventures Managing Director Luis Valdich said ScaleFactor's timing in the market gives it an advantage.
“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,” he said.
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