Today, we are excited to announce that ScaleFactor has closed a $30M Series B round, led by Bessemer Venture Partners. Our returning investors include Canaan, Broadhaven Ventures, Firebrand Ventures, and several prominent angel investors. We are so grateful to these investors for their faith in ScaleFactor’s mission. With their support, we have raised $40 million in only six months.
Introducing the Business Operating System
ScaleFactor started as a response to cumbersome, manual accounting processes that slow business down. Working as the CFO of a small technology company, I needed to make decisions quickly and was frustrated by waiting for the month to close to receive the financial information I needed to make those decisions.
On top of that, we used various systems for different areas of the business. We had one for expense tracking, one for payroll, another for paying bills, and yet another for basic accounting. Our information was spread all over the place, and few of the systems we used were able to talk to one another.
ScaleFactor was born to fix that problem–without charging customers six figures to do it. An automated accounting system that could pull information from other systems was just what small and midsize companies ordered.
No matter the kind of business, whether a coffee shop or an online retailer, all roads lead back to finances, which is why, as ScaleFactor has grown, accounting has remained at the hub of the wheel. New features last year like Cash Vision, Payroll, and Expense Insights were all designed to improve business owners’ relationships with their finances because the less time they spend worrying about them, the more time they can dedicate to doing what they love.
ScaleFactor is on its way to becoming the ultimate operating system for small business owners who want to get a clear understanding of all that’s happening within their business in real time. We are on a mission to help them stay one step ahead of their finances and, armed with that information, achieve the growth they want.
Big Things Are Coming
To rise to the challenge of becoming the business OS for small business owners, we have expanded our team by over 300% in 2018. We are also extremely pleased to announce three new executive hires whose combined experience in the startup landscape will help lead us to that goal.
Francis Sullivan brings over 30 years of industry experience to his new position as our Chief Technology Officer. Francis co-founded Austin-based Spiceworks and spent the last 13 years there redefining the SMB IT industry. We are thrilled to have him on our team as we take on more complex advancements to our software.
Robert Gilbreath also joins us as Senior Vice President of Marketing, bringing a depth of marketing and partnership knowledge. Robert was previously CMO and VP of Partnerships at Austin-based Shipstation. His marketing knowledge, entrepreneurial spirit, and prior startup experience will be instrumental to us as ScaleFactor continues to develop.
Finally, Eric Steinoff brings an impressive wealth of knowledge surrounding lending that will amplify ScaleFactor’s ability to connect small businesses to the best source of capital when they need it. Eric started his career at Capital One and was most recently Chief Compliance Officer at Apple Pie Capital.
In the year ahead, we expect our headcount to continue to grow to keep up with an expanding customer base. In 2018 alone, we were able to help 700% more customers than the year before. This growth is encouraging. It tells us we’re on the right track and that small business owners really need what we’re offering.
This round of funding will allow us to keep exploring new ways to help them. We’ll be able to bring in the team members we need to turn those ideas into realities. We’ll be able to spread the word about our solutions far and wide.
Most of all, we’ll be able to help small businesses scale faster. And that has been the mission since day one.
There are many people to thank for helping us along in this mission. To our investors, we thank you for your confidence and for enabling us to fundamentally change the accounting world. With your help, we are flipping cumbersome, manual accounting practices on their head. Raising $40M in only six months gives us the momentum we need to continue disrupting the industry and changing the way small business owners work.
To the ScaleFam, you made it happen. I couldn’t ask for a smarter bunch of people to build this company with, but your drive and passion is what makes this place truly special. You are all willing to go above and beyond for our customers, and I can feel how connected you are to our shared mission.
As a group, we must also thank our families, who have provided us with support and love. It’s not always easy building something new, and we couldn’t do it without those we come home to at the end of the day.
And last but not least, thank you to the customers we serve. I have been where you are, and I have felt the stress you feel. Running a small business is challenging, and yet small businesses are the backbone of our society. You make the world more efficient, more creative, and more engaging. We will always be there to help you do more of the things you love and grow with confidence.
Onward and Upward,