Financial operations software platform ScaleFactor has raised $10 million in a Series A, announced today. The round was led by Canaan Partners with participation by Citi Ventures, Next Coast Ventures, Flyover Capital, Firebrand Ventures, Broadhaven Capital, and other angel investors.
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This is the third round of funding for the Austin-based company, which recently raised $2.5 million in Seed funding in November 2017 and participated in Techstars Austin Accelerator during the spring of that year. With the addition of its $370,000 Angel round in 2015, its Series A brings the company’s total funding to nearly $12.9 million.
Founded in 2014 by former accountant Kurt Rathmann, ScaleFactor aims to help small and midsize businesses better manage their finances and set strategic financial goals.
“As a CFO at a small company in Denver, I was facing a series of operational inefficiencies that created a major disconnect between taking an action, and the impact it had on the business,” Founder and CEO Kurt Rathmann told Crunchbase News in an email. “We couldn’t realize the impact of things that were happening in May until we got the monthly reports in June.”
After allocating most of his time to simplifying accounting tasks and automating manual work, Rathmann decided to leave his job and found ScaleFactor.
With ScaleFactor’s software, companies can access automated accounting and bill pay and invoicing tools, integrate their financial processes into a tax compliance calendar, and view performance data through ScaleFactor’s company visibility dashboard. According to Rathmann, more than 250 companies use the platform. ScaleFactor currently serves three markets, including professional services companies, subscription-based businesses, and brands in consumer-packaged goods.
“We have a very technical team,” Rathman wrote. “Because of this, we have the ability to identify financial correlations as to why some customers excel over others in their space, and in turn, help our customers scale.”
Rathmann said that ScaleFactor has been focused on enhancing its core products for bookkeeping, bill pay, invoicing and tax compliance, but he says the company is also looking to build out ScaleFactor’s features and capabilities.
“We’re also building new features that help businesses make decisions based on their cash flow – things like getting paid faster and seeing potential issues before they happen,” Rathmann expressed.
Rathmann also said the company will dedicate the funding to customer acquisition.
“We are focused on finding great customers and making them very happy for a long time,” he wrote.
Illustration Credit: Li Anne Dias