Cloud tax practice management startup Canopy raises $11M
Cloud tax practice management platform startup Canopy Tax Inc. today announced it has raised $11 million in new funding to keep building out its accounting industry modern practice suite.
Ankona Capital led the Series C round. Other investors included NewView Capital, Pelion Venture Partners and Tenaya Capital.
Founded in 2014, Canopy offers cloud-based tax workflow management software that manages the tax workflow of tax practitioners. The software is designed to streamline tax resolution for tax professionals with easy-to-use software that is said to cut out “tax practice busywork” and enable efficient client experience.
The company pitches itself as bringing “all the different tools a practitioner needs under one roof.” Canopy is targeting a shift in the accounting industry toward cloud-based solutions built with both the accountant and the accountant’s client in mind — a trend it said has been accelerated by COVID-19. Services include the ability to respond quickly to every U.S. Internal Revenue Service notice sent, with step-by-step task lists to make sure they are responded to actively.
The company has seen strong growth and caters to thousands of accounting professionals across the U.S. Canopy’s suit includes support for Quickbooks, Office 365, Google G Suite, Zapier, Open API and Desktop Assistant.
“The large investments we’ve made in product development are now paying off in the form of record-high customer usage, retention and expansion,” Davis Bell, chief executive officer of Canopy, said in a statement. “Our suite can now compete toe-to-toe with the legacy on-premises software suites for midsize and large accounting firms, and this is showing up in our post-tax season marketing and sales metrics.”
Including the new funding, Canopy has raised $112.5 million to date, according to data from Crunchbase. Previous investors include Nyca Partners, New Enterprise Associates, University Growth Fund and EPIC Ventures.
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