Canopy Raises $11M in New Funding
Canopy, the Lehi-based maker of professional tax and accounting workflow management software, announced it has received $11 million in a Series C round. The round includes new investor Ankona Capital of Newport Beach California, as well as existing investors Pelion Venture Partners of Salt Lake City, NewView Capital and Tenaya Capital, both from the San Francisco Bay Area, and others. The new capital will be used to continue to build the accounting industry’s first cloud-first mobile practice suite.
“This additional $11 million in funding will be integral in enabling us to continue developing new features our customers have requested.” said Canopy CEO Davis Bell. “The large investments we’ve made in product development are now paying off in the form of record-high customer usage, retention and expansion. Our suite can now compete toe-to-toe with the legacy on-premise software suites for mid-size and large accounting firms, and this is showing up in our post-tax season marketing and sales metrics,”
“We first invested in Canopy because we knew that the accounting software industry was stagnant and ripe for disruption,” said Chad Packard, General Partner at Pelion Venture Partners. “Accountants and their clients are demanding modern solutions that allow them to work and interact virtually, and the large industry players haven’t been able to deliver what customers want.”
He continued, “Over the past 18 months, Canopy has executed incredibly well on the vision of bringing modern cloud software to accounting practices, and we’re thrilled to continue to back the team at Canopy in their quest to modernize the accounting software stack.“
Canopy was founded in 2014 and is investing in the development of its product to be at the front of an industry-wide migration toward cloud based solutions. This brings total funding to $96 million to date, though the company didn’t specify which round this is. According to Crunchbase, Canopy completed its series B in May 2018. The company has roughly 125 employees. According to Canopy, the software “cuts out accounting firm busywork, improves the client experience, and helps firms stay organized and operating efficiently.”