ScaleFactor, a US-based accounting software developer backed by financial services firm Citi, has collected $30m in a series B round led by venture capital firm Bessemer Venture Partners.
The round included Broadhaven Ventures, a branch of independent investment bank and advisory firm Broadhaven, as well as venture capital fund Firebrand Ventures and VC firm Canaan Partners, taking the company’s overall funding to approximately $42.9m.
Founded in 2014, ScaleFactor has built an accounting platform that uses artificial intelligence and machine learning technology to categorise financial transactions and automate the bookkeeping process for small businesses.
In addition to hiring new staff, the company said it will use the funding to add additional features to the platform.
Kurt Rathmann, ScaleFactor’s founder and chief executive, said: “Businesses get overwhelmed by administrative work jumping from siloed solution to siloed solution and should be able to focus on what makes them successful.
“Our vision of a comprehensive business operating system, built with their needs in mind, allows our customers to be proactive with their business, operate in control and drive success.”
ScaleFactor secured $10m in a July 2018 series A round that was led by Canaan Partners and backed by Citi’s strategic investment arm, Citi Ventures, as well as Broadhaven Ventures.
The round also featured Flyover Capital, Firebrand Ventures and Next Coast Ventures, all of which participated in the company’s $2.5m seed round in November 2017 alongside Techstars Ventures, Matchstick Ventures and Edison Factory.