Canopy, a US-based producer of tax office management software, increased a funding round featuring financial services firm Wells Fargo from $30m to $42m on Wednesday.
Tenaya Capital and Nyca Partners supplied the additional funding, adding to the first tranche, which was led by New Enterprise Associates (NEA) and backed by Wells Fargo unit Wells Fargo Strategic Capital, Epic Ventures, University Growth Fund and Pelion Ventures.
Canopy has built a software platform that allows tax and accounting practices to be run more efficiently by connecting client data, documents and workflow in a single, accessible place where it can be effectively managed.
The company also offers a platform that helps tax professionals resolve issues quickly and easily by using automation to streamline the data input and analysis processes and making recommendations for each case.
The extension came shortly after Canopy launched a new product, Notices, which stores notices from the US tax authorities on a large database that can be easily sorted through in order to find data relevant to each client.
Kurt Avarell, founder and chief executive of Canopy, said: “This additional funding further validates that our value proposition and solutions are making a real impact for both our customers and the industry as a whole.”
The company has now raised $72m since it was founded in 2014. It secured the earlier funding across three rounds between 2014 and March 2017, with NEA, Deep Fork Capital, Pelion Venture Partners and Epic Ventures all investing prior to the latest round.