Startup77’s Post

New startups in tax technology - Jan 2025 edition

Enterprise fintech experienced a notable uptick in Q2, with deal value rising by 27.1% from Q1, as per PitchBook's latest report. The sector amassed $4.63 billion across 316 deals in the second quarter, marking a significant recovery from the previous quarters. The integration of AI with financial software has emerged as a successful strategy, evident in recent funding rounds for companies like AccountsIQ and Sedric. AccountsIQ, an Irish AI bookkeeping startup, secured $65 million in funding led by Axiom Equity, while Sedric, an AI fintech compliance startup based in New York, raised $18.5 million in a Series A round. Moreover, key fundraises by companies like AlphaSense and FloQast have further bolstered the enterprise fintech landscape. Notably, Finally, an accounting platform, raised a substantial $200 million in a Series B round, leveraging AI technology within the enterprise fintech space. The funding included a $50 million equity investment from PeakSpan Capital and a $150 million credit facility from Encina Capital Partners, bringing the total funding to $305 million. Finally's innovative bookkeeping ledger utilizes machine learning for transaction analysis, payroll processing, tax preparation, compliance, invoicing, and a corporate credit card service. In the competitive landscape, Pilot, an AI-assisted bookkeeping startup, stands out with nearly $325 million in funding and a valuation of $1.25 billion in 2021. The convergence of AI and finance continues to drive growth and innovation in the sector. #AI #Finance #Accounting #Startups #VC #seriesB

🏆 🏆 Not a bad place to be right behind K1X, Inc. Similar to TaxNow, K1X is a product that is was needed in the tax prep industry for SO long. In my prior life as a tax preparer, I could have avoided so many hours of manually keying in K-1 items and footnote information into tax prep software. So many long nights and weekends wasted 😫 (especially on those pesky PFIC statements). TaxNow is similarly poised to save tax professionals SO many hours each year currently wasted waiting on hold with the IRS or chasing clients for PBC data or details on estimated payments, letters/notices, tax elections, etc. Join the TaxNow revolution today! 🚨 Sign up for FREE at https://lnkd.in/eBipxmzG or ask me about TaxNow Pro if you are a tax professional. #taxnow #k1x #taxtechnology

💡 The #1 Reason Why Startups Fail: Cash Flow Crisis 💡 Did you know 38% of startups fail due to cash flow issues or their inability to track and spend new capital? This isn't just a stat, it's a reality many founders face. But there's a powerful way to avoid this fate: AI-driven financial tools. These tools aren't just fancy tech, they’re lifesavers for startup founders looking to streamline their finances and prepare for investor scrutiny. Here’s how to leverage AI to solve the cash flow crisis: 1️⃣ Automate Revenue Recognition: Tools like Chargebee and Xero help SaaS startups manage subscription models effortlessly. 2️⃣ Real-Time Transaction Tracking: AI tools like QuickBooks sync transactions instantly, reducing manual errors. 3️⃣ Track Payment Fees Automatically: Expensify or Bill dotcom can help track fees that silently eat into your profits. 4️⃣ Seamless Tax Compliance: AI-driven platforms like Avalara or TaxJar ensure tax compliance with minimal manual input. 5️⃣ Smooth End-of-Month Reconciliation: FreshBooks ensures your accounts are investor-ready by simplifying reconciliation. 6️⃣ AI-Driven Budget Forecasts: Fathom or Float empower you to project future cash flows, so you can raise capital confidently. These tools aren't just for automating tasks, they're giving founders back control of their finances. For those aiming to scale, financial preparedness is non-negotiable. So, are you ready to make your startup's cash flow investor-ready? Startups can thrive by harnessing the power of AI. Take control, and don't let cash flow be the reason for your startup to join the 38%. P.S. What’s your go-to financial tool for managing cash flow? Share in the comments! Repost to help more startups secure their future. #AIForStartups #CashFlowManagement #Fintech

Taxflow, Inc raises $750K in pre-seed funding to build AI-powered accountants. The round saw participation from Platanus Ventures, BFF, and angel investors including Brian Requarth of Latitud and Brian York. Founded in 2024 by Felipe Salinas Rangel and Julián Arango, Taxflow simplifies tax filing for accounting firms by automating tasks like data collection and transaction categorization. With US tax services being a $144B industry, this funding will help scale the technology and expand its team to revolutionize accounting. Stay ahead in the startup world! 🌟 Get a weekly digest of key happenings and insights delivered to your inbox every Monday morning. Don't miss out—subscribe now: https://lnkd.in/eK3zVK5e 🚀 #Fintech #AI #Funding #TaxTech #USStartups

Raised $103M. Promised AI-driven accounting. Collapsed in 2020 In 2020, fintech startup ScaleFactor, to revolutionize accounting with AI, shut down. Why? The Promises: * Automated bookkeeping for SMBs * Real-time financial insights * AI-driven innovation The Reality: * No real AI - just human accountants disguised as "customer service officers." * Errors galore: Glitchy software and bad service plagued users. * Fuzzy financials: Creative accounting masked operational inefficiencies. Lessons Learned: * FOMO investing fuels overhyped startups. * "Fake it till you make it" doesn’t always pay off. * Tech innovation must be grounded in delivery. Take: Venture-backed dreams without execution = inevitable failure. Focus on building value, not hype. What’s your biggest lesson from ScaleFactor's fall? #StartupLessons #BusinessFailure #Fintech #ScaleFactor #LessonsInLeadership #Entrepreneurship #VCInvesting #Automation #BusinessInnovation

ZenStatement, an innovative AI-powered finance automation and cashflow management platform, has successfully raised $1.62 million in a seed funding round! The round was led by 3one4 Capital and BoldCap VC, with additional support from Dynamis Ventures and Atrium Angels. Notable angel investors include industry veterans like Michael Boyd, former Global Treasury Head at Apple, and founders from leading startups such as EatFit and ZETWERK. Founded in 2023 by Sourabh Nolkha and Ankit N., ZenStatement (formerly SimpliFin) aims to help businesses easily monitor, optimize, reconcile, and forecast their cash flows, all while providing valuable financial insights through AI-driven natural language queries. In just one year, the platform has built an impressive customer base that includes unicorns and leading players in digital commerce, retail, and fintech, managing approximately 10 million transactions monthly! With this new funding, ZenStatement is set to expand its product offerings and strengthen its presence in both Indian and international markets. Stay tuned for more updates as ZenStatement continues to revolutionize financial management! Read More: https://lnkd.in/g_iXHKFF #Fintech #StartupFunding #AI #CashflowManagement #ZenStatement #Innovation #InvestmentNews #FinancialTechnology

#AI #Finance: 🚀 Irish AI startup Numra has just secured €1.5 million in a recent #funding round! 🎉💰 The #investment was led by Elkstone and saw the support of several notable angel investors. 🤝 🤖💼 Here's more about its AI finance assistant ‘Mary’: https://lnkd.in/d6taqE69 #news #technews #innovation #startup #technology #vcfunding #venturecapital #fundingnews #investment #ireland #irishtech #uktech #aiassistant #financialtech #financeoperations #artificialintelligence David Kearney Conor Digan Niall McEvoy

🚀 Singapore-based fintech startup Earlybird AI has officially emerged from stealth mode, announcing a pre-seed funding round led by Antler and joined by several strategic angel investors. Founded by serial entrepreneur and former VISA executive Bhavana Ravindran, Earlybird AI is on a mission to make bookkeeping and financial admin tasks painless for SMEs. Its mobile app not only simplifies business finances and accounting but also acts as a virtual CFO, turning low-value admin work into high-value insights and actionable recommendations. With this fresh capital, the startup aims to accelerate its go-to-market strategy, release its minimum viable product, and attract top talent in design, engineering, and AI. 📈 According to Ravindran, "Founders build the future of our society, but they’re currently overwhelmed by admin-heavy, poorly designed bookkeeping tools and operational tasks. By tackling the multi-billion dollar SME accounting industry, we can enable founders to focus on what they do best—growing their business." Earlybird AI is already seeing promising traction, with a 30% week-over-week growth in beta test users. 🏆 The startup also took home first prize at the Asia Startup Network Angels Arena pitch event this month. Is Earlybird AI the future of SME finance? Time will tell 💼 #e27News #fintech #startupnews #AI #SMEs #bookkeeping #innovation #EarlybirdAI

🚀 Hey LinkedIn Family! I'm beyond excited to share what our team created at the "HackWithDelhi" hackathon! 🚀 We built a game-changing platform that connects Chartered Accountants (CAs) with startups, simplifying financial management and offering powerful tools to boost their growth. 🔍 What We Developed: Smart Connection Portal: Effortlessly links startups with the perfect CA to meet their needs. OCR Magic: Uses cutting-edge OCR technology to pull data from GST-verified bills, creating balanced sheets and calculating taxes instantly. AI Tax Guru: Our AI chatbot provides personalized, legal tax-saving tips, making tax management a breeze. Learn & Grow Portal: An educational hub packed with resources to help users stay savvy about financial regulations. Real-Time News Feed: Keeps everyone in the loop with the latest financial news and trends. We believe this platform will revolutionize how startups handle their finances and connect with top-notch CAs, making tax time less stressful and more efficient. 📄 Check out the attached PDF for a deep dive into our solution and its amazing potential! Let's drive innovation together and make financial management smarter and easier! 💡💼My team:- Neural Knights Tanmay Jain Rashi Garg Ananya Raj Vineet Raj Kaustubh Pandey #HackWithDelhi #Innovation #FinTech #AI #OCR #Startups #TaxSolutions #CharteredAccountants #FinancialEducation #TechForGood #Entrepreneurship #StartupCommunity #BusinessGrowth #Finance #Technology #Networking #BusinessDevelopment