Austin accounting automation software maker ScaleFactor said Thursday it has raised a $30 million Series B funding round and made a few executive hires.
The new funding, led by Bessemer Venture Partners, an early stage firm based in Menlo Park, Calif. Prior investors Canaan Partners, Broadhaven Ventures, Firebrand Ventures and several angel investors also returned to back the company again in this round.
ScaleFactor, founded in 2014 by Kurt Rathmann, provides back office bookkeeping software that uses advanced analysis to automatically comb spreadsheets, receipts, tax logs and other data sources to generate reports and insights.
The new funding will help the company expand its product lineup and make new hires, and several key additions were also announced Thursday. That includes a new CTO, Francis Sullivan, who previously co-founded Austin-based IT networking company Spiceworks. ScaleFactor also added Robert Gilbreath, a former CMO and VP of partnerships at Austin-based ShipStation, and former Apple Pie Capital compliance officer Eric Steinhoff.
“ScaleFactor has assembled an optimal combination of technology and team,” Anna Khan, VP of Bessemer Venture Partners, said in a news release. “ScaleFactor has grown at hyper-speed since its inception, and we are firm believers that AI-based accounting and (a streamlined) back office is the path forward for the majority of small businesses.”
The company reported it logged a 700 percent increase in customers last year. And, in September last year, it integrated its products with business software giant Salesforce.
ScaleFactor's new funding follows a $10 million Series A round in July last year, which was led by Canaan Partners and backed by Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital and Firebrand Ventures. ScaleFactor's $2.5 million seed round came in November 2017 after it went through the Techstars accelerator in Austin. Its initial funding round came in the form of $370,000 from angel investors in 2015.
