Today, we are thrilled to announce that ScaleFactor has closed a $60 million Series C round, led by Coatue. This funding round includes returning investors Bessemer Venture Partners, Canaan, and Broadhaven Ventures. We’re also pleased to welcome some new investors, including Vulcan, Stripes Group, and NextPlay Capital, among other prominent angel investors.
With the support of these groups, ScaleFactor has raised $100 million in under one year.
Revolutionizing Accounting, Powering Small Business
I began my career at a big accounting firm, working on audits for large companies with sophisticated financial systems. When I transitioned into a CFO role at a much smaller company, I was frustrated by the cumbersome accounting processes I encountered. My own frustrations were what sparked the idea for ScaleFactor.
What has driven ScaleFactor from an idea to a high-growth company, however, is a common desire to level the playing field.
When small business owners are spending 10-20+ hours a week managing back-office tasks like bookkeeping and payroll, they’re losing valuable time. That’s time that could be spent growing the business or with their families.
With the recent explosion of SaaS solutions, SMBs have been largely ignored, especially in the fin-tech space. With so much new technology at our fingertips, there’s no reason for sophisticated financial platforms to be reserved for large companies with entire teams of accountants and big budgets.
ScaleFactor has grown as a result of this drive. By bringing together all pieces of a small business’ financial data into one easy-to-use platform, we are providing them with a complete and transparent view of their finances. And with the help of automation and technology, we’re able to do it in real time.
Developing Rhythms & Cadences
No matter how streamlined accounting becomes, it will never be a set-it-and-forget-it area of business. Business owners need to check in at regular intervals to approve payroll, monitor expenses, and review financial statements, for example.
ScaleFactor helps business owners establish these positive habits by taking the tedious work off their plates and notifying customers when something needs their attention. Too many business owners can’t get the kind of real-time reporting they need because their information is siloed across different solutions, keeping them from establishing regular cadences of monitoring performance. With ScaleFactor, we’re working to change that.
Where To Next?
So far in 2019, we have been on a mission to continue consolidating essential business information into one platform, giving small businesses all the information and resources they need to succeed. In doing so, we have dubbed our application the “essential business OS” (operating system) for SMBs. And that’s what it’s become—a solution through which small businesses can truly operate their businesses.
We launched our inaugural State of SMB Finance report this year to better understand our customers and the struggles they’re facing. With this knowledge, we know that our latest round of funding will be put to good use, further developing our product and connecting small businesses to financial resources that will help them scale.
ScaleFactor is well on its way to becoming the foundational platform for SMB operations, and with this round, we’re quadrupling down on that vision.
To the many investors who have believed in our mission, we thank them. Their confidence and conviction in our progress and mission is encouraging, supportive and inspiring. With an additional $60 million to put toward our goals, the world’s leading investors are betting us to drive change in the market as the leader.
To our customers, they have our deepest gratitude. Their feedback has been invaluable to us, and we have listened closely to what you had to say. We have much more to go and we would not be here without their support. Our Customers are the most important part of the business besides our team.
To the ScaleFactor team, there is no ScaleFactor without you. You are the heartbeat of this business. Individually, you’re all rockstars. Together, when focused on a common goal you’re unstoppable. I look forward to continuing to grow with a focused team that is intent on hitting our goals as one.
This is an exciting time for ScaleFactor, and I am deeply grateful to everyone involved in our journey so far. Even more exciting times lie ahead as we now amplify everything we have been working on.