ScaleFactor Company Overview, Contact Details & Competitors

scalefactor revenue

ScaleFactor Inc., an automated accounting and finance platform for the bookkeeping SMB market, announced it raised $60 million in Series C funding led by Coatue Management LLC.The Austin, Texas-based fintech provides a series of online and mobile applications to help businesses manage back-office finances … Rathmann says the pandemic wiped out almost half of ScaleFactor’s sales; the startup had reached $7 million in annual recurring revenue at the end of 2019. But the company appears to have been on rocky ground even before the pandemic. After raising capital last year, ScaleFactor hired dozens of customer service representatives to improve customer relations, only to lay off 40 of them in February as the company’s bottom line suffered. Rathmann acknowledges the decision may have affected his business once the pandemic hit, as customers demanded more human relationships, rather than automated services. Ahead of yet another funding round, multiple venture capital firms passed on investing, according to people familiar with their decisions, having determined that ScaleFactor was more of a services business than a software platform.

ScaleFactor Revenue & Valuation

  • Despite the votes of confidence from well-known investors, customers were finding that ScaleFactor was falling short.
  • In the spring, investors discussed ScaleFactor’s future before deciding to shutter operations, according to a person with knowledge of the discussions.
  • So he left his job at KPMG and started ScaleFactor Consulting out of his garage in Austin in 2014.
  • Founded by longtime accountant, Kurt Rathmann, the Austin-based company has created a software service that collects and analyzes data from point of sale systems, bank accounts, credit cards and billing systems, to automate recordkeeping and payroll functions.
  • ScaleFactor, the Techstars alumnus that’s selling accounting and payroll management software as a service, has raised $10 million in a new round of funding as it looks to scale up its sales and marketing efforts.

We do not have the information about the paid up capital of Scalefactor. Our systems are trying to find it, we will update it as soon as we have it. It also provides the basic information of profit, loss, expenses incurred by Scalefactor. This is a brief summary, the actual information may vary on the recent filings done by the Scalefactor company to the government.

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scalefactor revenue

In the real estate sector, venture backed office-space providers Convene and Knotel have laid off hundreds of workers. In travel, TripActions, a corporate travel management software startup that lost 95% of its business as a result of the pandemic, recently secured $125 million to keep the company afloat. ScaleFactor, an Austin, Texas-based intelligent finance and automated accounting platform, raised $60m in Series C funding.The round was led by Coatue Management, with participation from returning investors Bessemer Venture Partners, Canaan, Broadhaven Ventures, and Firebrand Ventures as well … ScaleFactor’s closure is yet another symptom of the pandemic’s varying effect on venture-backed startups. Some technology firms that enable remote workforces to thrive — such as workflow software startup Notion or cloud-based design company Figma — have seen their valuations soar far north of $1 billion. By the end of last year, software startup ScaleFactor had emerged as a buzzy financial services company, raising $100 million in 12 months from big-name investors including Bessemer Venture Partners and Coatue Management.

scalefactor revenue

Company

Even as doubts about its product emerged, ScaleFactor scored a term sheet for a $60 million funding round at the start of June 2019. Coatue Management, a large technology investor overseeing $16 billion in assets, led the new funding round, joined by Bessemer, Canaan and others. “With our foundation established, a big part of our Series A is how do we power the business owner past bookkeeping & accounting? We see many opportunities to help further and our next steps will include things like lending, payments and many other activities that take a business owner/operators focus away from driving their business forward,” Rathmann wrote in an email. After graduating from TechStars’ Austin accelerator, the company was able to nab $2.5 million in a seed financing round that included TechStars Ventures, NextCoast Ventures, and two Kansas City-based investment firms — Firebrand Ventures and Flyover Capital. Rathmann, a https://www.bookstime.com/ former KPMG employee, started ScaleFactor after seeing the lack of innovation in the backoffice functions that are really the engine of any small business.

scalefactor revenue

Covid-19 swept the United States the following month, and existing customers weren’t buying in; Robert and Cornelia Stang balked after being told their contract would jump from $500-a-month to $1,700. In the spring, investors discussed ScaleFactor’s future before deciding to shutter operations, according to a person with knowledge of the discussions. Founded by longtime accountant, Kurt Rathmann, the Austin-based company has created a software service that collects and analyzes data from point of sale systems, bank accounts, credit cards and scalefactor billing systems, to automate recordkeeping and payroll functions. While Square has moved into lending services (and now is on the hunt for a banking license) through its window into a company’s revenues through point-of-sale devices, a company like ScaleFactor has a more holistic view of the health of a business, says Gilroy.

  • But no matter where they worked, the unpredictable technology continued to lead to errors in customers’ books.
  • “We really thought we could automate the entire back office of a small business,” said Kurt Rathmann.
  • While the initial services business holds a lot of value and has managed to attract scores of small businesses, both Rathmann and his new investors led by Canaan Partners and including Citi Ventures and Broadhaven Capital see bigger opportunities down the road for ScaleFactor.
  • The company celebrated by throwing them a party at an arts and crafts factory in East Austin, where employees took photos with oversized bonus checks.
  • At the end of the month, the sales team was told the target had been met.
  • Some technology firms that enable remote workforces to thrive — such as workflow software startup Notion or cloud-based design company Figma — have seen their valuations soar far north of $1 billion.
  • Patrick Coddou, whose e-commerce business paid ScaleFactor more than $10,000, requested to cancel in April 2019 after his statements, expected to be delivered on a real-time basis, were delivered monthly because they were being processed manually.

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