Tax resolution software Canopy raised an addition $30 million in new Series B financing led by Silicon Valley-based New Enterprise Associates, announced this week. Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund, and EPIC Ventures also participated in the round.
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Utah-based Canopy was founded in 2014 by Kurt Avarell, a former tax attorney. The startup aims to help accounting professionals manage their workflows and client documents through its online practice management and tax resolution products. The Canopy portals allow tax accountants to collaborate with their clients on tax paperwork remotely, as well as to use the automated system to gather insight about their clients’ tax solutions.
The early-stage startup previously raised a $2 million Seed round in July of that year, also led by New Enterprise Associates with participation by EPIC Ventures and San Francisco-based Deep Fork Capital. Its Series A in July 2015 led, again, by New Enterprise Associates brought in $8 million for Canopy and was followed by a $20 million Series B round led by Salt Lake City-based Pelion Venture Partners. This latest round of funding brings the company’s aggregate total funds raised to $60 million.
A Canopy spokesperson, Jordan Ray, told Crunchbase News that they believe most tax professional’s services are not up to par.
“Unfortunately, the look and feel of their software is a throwback to the 90’s, and their software ecosystem is disconnected,” Ray explained in an email.
Though the company did not disclose specific revenue details, the spokesperson told Crunchbase News that it more than tripled its annual recurring revenue in 2017, and it plans to triple its ARR again in the next year. According to the company, it has more than 5,000 paying users, a base it plans to also triple in the next year.
Canopy will use its new funding to build out third-party integrations with apps that tax and accounting professionals already use. It will also build out its product to include a mobile experience for accountants and clients.
Illustration Credit: Li Anne Dias
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