Accounting automation for small business continues to grow, as fintech startup ScaleFactor has raised $2.5 Million in a new series of seed funding. Next Coast Ventures led the way, along with Techstars Ventures, Firebrand Ventures, Matchstick Ventures, Edison Factory, and Flyover Capital.
ScaleFactor aims to help SMEs with a software that automates bookkeeping, which currently serve 29 million customers. “Accountants that don’t provide proactive guidance do a disservice to their clients,” write Kurt Rathmann, CEO and Founder of ScaleFactor in an official statement about the funding. “ScaleFactor addresses this need and is uniquely poised to fundamentally change the way people perform accounting and finance functions in their small businesses. Our investors understand the importance of automating and streamlining accounting tasks and ScaleFactor’s technology is pivotal in moving business from the reactive to the proactive space.”
The new funds will be used to accelerate product development to further automate bookkeeping and forecasting solutions with innovative technologies. The company had previously raised $370K in March 2015 and participated in Techstar’s Austin Accelerator this year.
ScaleFactor works to improve accountability for small businesses, to improve their forecasting, and move them away from reactive measurements, while providing accounting information through a user friendly interface. Part of the new funds will go to the creation and development of mobile applications and the creation of a Trusted Partnership Network.
“Two of our investment themes focus on the future of work and full-stack software business models, and ScaleFactor’s product hits both of these right on the head,” stated Mike Smerklo, Co-Founder and Managing Director of Next Coast Ventures to VentureBeat.