Internet and telecommunications group SoftBank’s Vision Fund 2 led a $65m series C round for US-based online accounting platform developer Digits yesterday at a valuation of $565m.
Internet and technology conglomerate Alphabet also took part in the round, through corporate venturing unit GV, alongside growth equity fund 20VC Growth and venture capital firm Benchmark.
Founded in 2018, Digits has developed artificial intelligence-powered software that monitors and analyses expenditures for small and medium-sized businesses in real-time, feeding insights back to the user through an interactive interface.
The company claims its product saves accountants an average of three to four hours per client. The cash will be used to further develop its technology and follows the launch of its Digits Reports product, which comprises interactive financial reports with built-in analysis and visualisation.
GV previously led a $22m series B round for Digits in April 2020 that included Benchmark. It came after Benchmark had led a $10.5m series A round the previous year with backing from 72 angel investors.
Digits co-founder Jeff Seibert said: “We have invested the last three years in building the technological foundations required to understand and model business finance, in real-time, as transactions happen. We call this the ‘Living Model’.
“Using advanced algorithms and machine learning, Digits automatically understands each business at the object level – its customers, suppliers, bank accounts, employees and so on – and the transactions between them. This is what makes products like Digits Reports so powerful, yet so intuitive.”
