Cloud-based tax management startup Canopy raises $ 35 million
Cloud-based tax practice management platform startup Canopy Tax Inc. announced today that it has raised $ 35 million in new funding to accelerate its mission to become the firm’s default operating system accountants.
Ten Coves Capital led the round of the BB series. NewView Capital, Pelion Partners, Tenaya Capital and Ankona Capital also participated in the cycle.
Including the new funding, Canopy has raised $ 147.5 million to date, including a previous round of $ 11 million in June. Previous investors include Nyca Partners, New Enterprise Associates, University Growth Fund, and EPIC Ventures.
Founded in 2014, Canopy offers cloud-based software designed to manage the tax workflow of tax professionals. The company’s software is designed to streamline tax resolution for tax professionals with easy-to-use software that eliminates “tax practice overload” and enables an efficient customer experience.
The software offers a practice management suite that includes modules for client management, document management, workflow, time and invoicing, especially with large companies. Services include the ability to respond quickly to every notice sent by the U.S. Internal Revenue Service, with step-by-step to-do lists to ensure they receive an active response. The software also includes integrations with Quickbooks, Office 365, Google G Suite, Zapier, Open API, and Desktop Assistant.
Canopy says its offering addresses a growing talent shortage, where certified professional accounts need to do the same amount of work with fewer people. The company notes that a recent study by the National Association of State Treasurers Foundation found that online job postings for accounting and finance positions jumped 84% between 2016 and 2020. At the same time, accountants are aging, with around 31% in finance and finance. accountants over 55 and 60% over 45. As such, the industry is likely to face waves of retirements in the coming years.
“Canopy aims to provide accounting firms with a better way to manage their clients, their work and optimize the productivity of their practices,” Davis Bell, CEO of Canopy, said in a statement. “Modern accounting firms need cloud-based, user-friendly and mobile-accessible software that offers an integrated and holistic approach to managing their clients and their work. “