Company attributes
Other attributes
Founded by CEO Kurt Rathmann in 2014, ScaleFactor offers bookkeeping and accounting software. The software uses AI to automate accounting, tax, and finance services to save small to medium business owners money and time. They offer a flat fee to access the digital tools and services which start at $6,000 and reach $30,000 per year. Thomas Laffont, senior managing director at Coatue Management, speaking on their investment in ScaleFactor, said:
ScaleFactors software analyzes data from point of sale, bank accounts, credit cards and billing systems to automate record keeping and payroll. In November, 2018 ScaleFactor announced a partnership with Gusto - a payroll, benefits and human resources technology platform - to allow business to use both services and increase their back-end automation. They help companies pay their bills, maintain tax compliance, and build quarterly reports. ScaleFactor hired Eric Steinhoff in February 2019 to help expand into lending services to help those business whose books they keep.
ScaleFactor has been able to integrate with core software companies like Xero, Quickbooks, Gusto, Expensify, Salesforce, and Shopify to help business owners, and themselves, grow.
ScaleFactor completed an Angel Investment round in 2015 with $370 thousand raised.
ScaleFactor graduated the TechStars Austin accelerator in November 2017 with $2.5 million raised. Investors included TechStars Ventures, Next Coast Ventures, Matchstick Ventures, Flyover Capital, Firebrand Ventures and Edison Factury
ScaleFactor completed their Series A funding round in July 2018 with $10 million raised. Investors included Broadhaven Ventures, Citi Ventures, Next Coast Ventures, Flyover Capital and Firebrand Ventures.
In January 2019, ScaleFactor completed their Series B funding round with $30 million raised. Investors were lead by Bessemer Venture Partners and included Firebrand Ventures, Canaan Parnters and Broadhaven Capital Partners. ScaleFactor said, during the round, it intended to use the funds raised to expand operations while exploring other products such as loans or insurance to existing clients.
In August, 2019, ScaleFactor completed their Series C funding round with $60 million raised. Coatue Management lead the round, and investors included Vulcan, Stripes Group, Next Play Capital, Firebrand Ventures, Canaan Partners, Broadhaven Capital Partners, Bessemer Venture Partners, Flyover Capital and Citi Ventures.
On June 23, 2020, Kurt Rathmann, CEO of ScaleFactor, met with his team to break the news that they were letting go half of its team members that day. He then announced that the company was ceasing a majority of its operations on August 28, 2020.
