ScaleFactor, the Austin fintech startup providing small businesses an alternative to hiring an accountant, announced today that it has raised a $2.5 million seed round.
NextCoast Ventures, Techstars Ventures, Firebrand Ventures, Matchstick Ventures, Edison Factory and Flyover Capital participated in the startup’s first major round, which will be used to further enhance its bookkeeping and forecasting solutions.
"ScaleFactor is focused not only on the financial operations but also on the hub of applications that surround a small business,” said Kurt Rathmann, CEO of ScaleFactor. “Our software tackles the entire financial suite of a business instead of creating data silos where information is stored across software applications.”
The startup, a Techstars Austin alumni, launched in 2014 and raised $370,000 in March 2015. Its platform includes solutions that automate and analyze traditional bookkeeping tasks like forecasting, bill pay, invoicing and compliance requirements. Additionally, ScaleFactor’s machine learning algorithm improves over time, getting faster and more accurate as it continuously sifts through data and learns each client’s business model.
“We deliver an entire experience that removes most of the administrative headaches of running a business,” said Rathmann. “We are an operational cockpit streamlining the entire back office.”
ScaleFactor’s growing client base includes Austin-based Helm Boots, Kammock, Bold Metrics and Juiceland.
"Two of our investment themes focus on the future of work and full-stack software business models, and ScaleFactor's product hits both of these right on the head," said Mike Smerklo, co-founder and managing director of Next Coast Ventures, in a statement. "Their intuitive software platform doesn't just empower better financial decisions by changing the nature of accounting and finance, it also streamlines business operations for human managers and creates a valuable experience for its users."
Rathmann said ScaleFactor is in hiring mode and is looking to add to its dev, sales, onboarding and solutions teams. The company currently has 30 employees.
As for funding celebrations, Rathmann said the team will be getting out of work early to take a party bus to TopGolf.
"Our team is everything to us, and this is a moment that we are going to stop and be grateful for our accomplishments and the journey we are on with each other,” Rathmann said.