Austin, Texas based provider of accounting automation software for SMEs raised $60m in Series C funding led by Coatue Management.
The six-year-old company is growing rapidly and says it needs the capital to keep up with demand. Evidence of that growth can be seen in ScaleFactor’s surging annual recurring revenue (ARR), a metric that modern software companies use to track growth in their subscription income, and headcount. CEO and founder Kurt Rathmann told me that his company’s ARR grew by 700 percent in 2018 compared to the year prior (although from what he admittedly described as a relatively “smaller” base it’s still on the very high-end of the growth curve). He projects ScaleFactor’s ARR will grow by 300 percent this year as the firm approaches the 1,000-customer mark after adding “hundreds of new customers a month.”