Austin—ScaleFactor, a company that sells machine learning-based financial and bookkeeping software to small- and medium-sized businesses, has snagged a $10 million Series A funding in a round that was led by Canaan Partners.
ScaleFactor plans to use the funding for marketing, business development, and to further develop its product. The company participated in the Austin Techstars accelerator in 2017, and had previously raised almost $2.9 million. Other investors in the new funding round include Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital, Firebrand Ventures, and strategic angel investors.
Austin-based ScaleFactor’s program syncs up with online bookkeeping software like QuickBooks, and the company says its machine learning algorithms can better digest and account for businesses’ finances. The company says its software can also better help a business forecast and budget, pay bills and send invoices, and comply with tax and other business requirements. ScaleFactor can work with customers that don’t already have accounting software, too, CEO Kurt Rathmann told Xconomy last year.
ScaleFactor believes it stands out from other services that offer similar machine learning-backed software—including New Zealand-based Xero and Germany-based Smacc—because it offers a full hub of financial services for small businesses, and is based and operated in the U.S., Rathmann wrote in an e-mail in November when the company announced its seed funding round.
