ScaleFactor secures $30m funding for back office automation
Texas-based accounting platform ScaleFactor has closed a $30 million Series B round of funding led by Bessemer Venture Partners.
Following its Series A in July 2018, ScaleFactor has raised $40 million in less than six months. Returning investors in the round include Canaan, Broadhaven Ventures, Firebrand Ventures and multiple prominent angel investors.
“Businesses get overwhelmed by administrative work jumping from siloed solution to siloed solution and should be able to focus on what makes them successful,” says Kurt Rathmann, CEO and founder of ScaleFactor.
Its plan is to help small business owners by consolidating and automating back-office operations into one platform to create an “intuitive ‘business OS’ [operating system]”.
There are no specifics, but the new capital will fuel additional features and headcount in the company’s Austin headquarters and enable it to expand nationwide.
In what the firm perceives as “the race to intelligent finance”, it says there are 19 million companies in the US with under 100 employees, all of which need to keep track of finances.
ScaleFactor comments: “Unfortunately, most of them are currently forced to handle these tasks manually, a painful and time-consuming process. They’re stuck between an Excel spreadsheet and software that can cost over $100,000.”
It seems to be doing pretty well as it got over 700% annual customer growth in 2018. Current offerings include automated bookkeeping, bill pay and invoicing, cash vision and business insights.