ScaleFactor, the intelligent finance and automated accounting platform, today announced that it raised a $60 million Series C funding round led by Coatue.
On the heels of its Series B in January 2019, ScaleFactor has raised a total of $100 million in the past year. This funding round includes returning investors Bessemer Venture Partners, Canaan, Broadhaven Ventures, and Firebrand Ventures as well as new investors including Vulcan, Stripes Group, and NextPlay Capital, among other prominent angel investors. Prior investors include Citi Ventures, Flyover Capital and others.
ScaleFactor’s online financial software empowers small- and mid-size businesses (SMB) by streamlining and automating back-office tasks. From bookkeeping to payroll, ScaleFactor provides a built-in cadence to business operations, giving owners access to tools and insights previously only available to enterprise companies. The new capital will allow the company to expand its ‘business OS’ capabilities and offer new solutions to SMBs, firmly establishing ScaleFactor as the foundational platform for SMB operations.
“Listening closely to our customers over the years, we’ve learned small business owners care about three factors above everything else: saving time, saving money and scaling their businesses,” said Kurt Rathmann, founder and CEO of ScaleFactor. “ScaleFactor has taken our collective experience and focused our entire model on addressing these needs directly to empower SMBs with technology and services that were formerly only available for large enterprises. We are excited to add Coatue and all of our new investors to the ScaleFactor family.”
Revolutionizing Accounting by Powering Small Business
The ScaleFactor platform taps into the often overlooked SMB market, providing technology and insights traditionally reserved for large businesses and enterprises. With a team of SMB experts at the helm of ScaleFactor, the company has created an intuitive business OS, offering automated back-office solutions for bookkeeping, payroll and other financial and business processes. In the coming year, ScaleFactor plans to revolutionize how SMBs access capital by offering financial resources that are often inaccessible to businesses of their size.
By consolidating all financial data into one single easy-to-use platform, SMB owners have a complete and transparent view of their finances in real-time and are empowered to establish consistent financial habits. SMB owners using ScaleFactor’s accounting software can strategically utilize financial data to drive decision-making in real-time, which results in time savings and increased accuracy.
Investor Thoughts on ScaleFactor Series C Round
“ScaleFactor is building the most comprehensive financial SaaS platform on the market for SMBs,” said Thomas Laffont, Coatue’s co-founder. “ScaleFactor is the back-office connection point that simply makes it easier to run a business. We are very pleased to invest in and support ScaleFactor on their path toward market leadership in the fintech sector.”
“We are proud to have identified Kurt’s leadership skills and determination to build ScaleFactor into the leader in intelligent finance from an early stage,” said Byron Deeter, Partner, Bessemer Venture Partners. “This company is a rocket ship of growth and has also managed to build a culture that empowers both its employees and its customers — a rare achievement in today’s market.”
“ScaleFactor is providing small businesses with an operating system that was previously only available to large enterprises,” said Michael Gilroy, Partner, Canaan. “We are at an inflection point in time where SaaS is creating a level playing field for SMBs which previously had to resort to manual tasks via redundant hires. This is the future of fintech and we are thrilled to be a part of the ScaleFactor family since the Series A.”
Contributed | what does this mean?