My friends over at Canopy Tax are on fire, and have some big plans in place to change the very landscape of tax practice software. Take a look at what they just announced. I’d like to extend a hearty congratulations to them, and I’m excited to see what they come out with next!
SALT LAKE CITY, UT – June 23, 2015 – Canopy (formerly Beanstalk), a SaaS tax and practice management platform for small-to-medium sized accounting and tax practices, announced today that it has raised $8 million in Series A funding led by leading venture capital firm New Enterprise Associates (NEA), with participation from returning investors EPIC Ventures and Deep Fork Capital. The new funds will allow Canopy to accelerate hiring and product development.
Canopy is currently focused on automation tools for the tax resolution market. Their offerings improve the interaction between tax advisors and their clients and automate much of the tax practitioner’s workflow by utilizing web-based client intake surveys, robust tax analytics, auto-populated IRS forms, and a dynamic portal that allows the client to effortlessly exchange information and documents with their advisor. Tax advisors can manage their practice and clients more efficiently with Canopy by having files, notes, dates, and invoicing all in one place.
Founder and CEO Kurt Avarell, a former tax attorney turned tech entrepreneur, aims to transform the entire experience of paying and resolving taxes for tax professionals and their clients. Prior to launching Canopy, Avarell implemented the initial version of the product within his own tax practice and observed that not only did the platform minimize paperwork and streamline tax resolution—it also improved the client-advisor relationship by increasing communication and comfort throughout a process that is notorious for being stressful and cumbersome. “We are fundamentally rethinking how taxpayers currently interact with their advisors and how we can improve that experience for both parties,” said Avarell. “Traditionally tax advisors send their clients a bunch of paperwork to fill out and then they manually key that client’s written responses into their tax software. That’s not a great experience for either person. Canopy moves the experience online and eliminates the inefficiencies. It’s a win-win for all parties involved.”
“Taxes aren’t going away anytime soon; it’s a $100 billion market riddled with inefficiencies and eager for disruption,” said Chetan Puttagunta, Partner at NEA. “Canopy provides an extensive aggregate of tools for client management that benefit both tax pros and their clients. We were extremely impressed by their organic customer traction, and look forward to partnering with them to amplify their existing success.”
Since launching a limited beta in March 2014, Canopy has been growing rapidly among tax professionals who are eager to modernize their practice and automate their workflow. By using Canopy, tax advisors can provide their clients with a better customer experience while eliminating inefficiencies in their own practice—a winning combination.
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New Enterprise Associates, Inc. (NEA) is a leading venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With approximately $17 billion in committed capital, NEA invests in information technology, healthcare and energy technology 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 200 portfolio company IPOs and more than 320 acquisitions. For additional information, visit www.nea.com.
About EPIC Ventures
For over 20 years, EPIC Ventures has partnered with entrepreneurs to build lasting, category-defining information technology businesses. The firm focuses on early-stage opportunities throughout the western states, and works actively alongside a broad network of advisors to help its portfolio companies succeed. www.epicvc.com.
About Deep Fork Capital
Deep Fork Capital is a San Francisco- and New York City-based early-stage venture capital firm focused on investing globally in entrepreneurs who are building disruptive, technology-driven companies in the Consumerized Internet. Founded, funded and operated by entrepreneurs, Deep Fork Capital partners are familiar with the challenges and opportunities of launching and building a new business; as such, the firm seeks to collaborate actively with the entrepreneur throughout the lifecycle of their business. For additional information, visit www.deepforkcapital.com.
Media Contact: Jordan Ray, Canopy Tax, Inc., 801-215-9990, firstname.lastname@example.org