US-based accounting software developer ScaleFactor has completed a $60m series C round that included Citi Ventures, the strategic investment vehicle for financial services firm Citi,
The round was led by hedge fund manager Coatue Management and included Broadhaven Ventures, part of independent investment bank and advisory firm Broadhaven, as well as Bessemer Venture Partners (BVP), Canaan Partners, Firebrand Ventures, Vulcan, Stripes Group, NextPlay Capital, Flyover Capital and unnamed angel investors.
ScaleFactor has created artificial intelligence and machine learning-powered software that enables small and medium-sized businesses (SMBs) to manage financial transactions and automate bookkeeping. It will use the cash to expand its presence in the US, with additional capital going to accelerating product development.
BVP led ScaleFactor’s $30m series B round in January 2019, investing alongside Broadhaven Ventures, Firebrand Ventures and Canaan Partners. All three had previously joined Citi Ventures, Flyover Capital and Next Coast Ventures in its $10m series A in July 2018.
The company had already secured $2.9m, including $2.5m in seed capital from Flyover, Firebrand, Next Coast, Techstars Ventures, Matchstick Ventures and Edison Factory in 2017.
Kurt Rathmann, ScaleFactor’s founder and chief executive, said: “Listening closely to our customers over the years, we have learned small business owners care about three factors above everything else: saving time, saving money and scaling their businesses.
“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.”