Canopy Secures $30 Million in New Funding; Aims to Disrupt $100 Billion Tax Market
New investment round, led by NEA, brings Canopy’s total funding to $60 million
LEHI, Utah, March 27, 2018-- Canopy, the leading cloud-based practice management platform for tax and accounting professionals, announced its largest funding round, closing $30 million in new financing and totaling $60 million secured to date. Led by New Enterprise Associates (NEA), with participation from Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund, and EPIC Ventures, the additional funding will support Canopy’s momentum in disrupting the $100B+ tax software and services market.
“Canopy is tapping into a market that has been notoriously underserved when it comes to technology,” said Kurt Avarell, Canopy founder and CEO. “Our connected suite of products improves organization, transparency, and collaboration for tax practices, increasing productivity and saving tax professionals precious time and money. Canopy allows tax professionals to provide their clients a more modern and convenient customer experience. It's a win-win for both practitioners and their clients.”
Founded in 2014, Canopy quickly established itself as an innovator in the space and has empowered tax practitioners to match the convenience of do-it-yourself tax options while still providing consumers with a professional advisor to help navigate the intricate tax code. “The need for greater digitization and automation, to reduce the workload on tax professionals, is overdue in this industry,” said Matthew Raubacher, managing director, Wells Fargo Strategic Capital. “We are pleased to now be equity investors in Canopy as they help modernize the way tax professionals operate their practices and interact with their clients.”
Canopy has experienced exponential growth and now provides a holistic suite of cloud-based solutions including Practice Management and Tax Resolution to more than 5,000 tax and accounting professionals. Those professionals in turn serve more than 1 million clients through the Canopy platform. This growth is a testament to both the need in the industry for improved technology and the effectiveness of Canopy’s solution addressing the ever-changing tax laws and processes affecting tax and accounting professionals.
“There is an increasing amount of energy aimed at helping the tax industry automate a cumbersome and complex process for individuals and accounting practitioners alike,” said Chetan Puttagunta, General Partner at NEA. “And rightfully so—the need for better technology solutions is pervasive. Canopy has succeeded at building not only a solution that accurately and efficiently addresses the pain points in this industry, but also an agile team of experts, intimately familiar with these challenges—which is why we are thrilled to partner with the company through its continued growth.”
Canopy is a cloud-based practice management and tax resolution software. The modern, easy-to-use software cuts out tax practice busywork, improves the client experience, and brings all the different tools a practitioner needs under one roof. Canopy is also known for its free 2-minute IRS Transcripts Tool. Canopy was founded by Kurt Avarell, who walked away from his career as a Wall Street tax attorney to launch Canopy from his basement in 2014.
Learn more at www.canopytax.com and @CanopyTax.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With more than $20 billion in cumulative committed capital since the firm’s founding in 1977, NEA invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 220 portfolio company IPOs and more than 370 acquisitions. For additional information, visit www.nea.com.
mPR for Canopy
Jenny Olson, 310-773-2568
Venture Capital Database