Fintech startup and practice management platform for tax professionals, Canopy, announced on Tuesday it secured $30 million through its latest funding round, totaling $60 million secured to date. The funding round was led by New Enterprise Associates (NEA), with participation from Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund, and EPIC Ventures.
Founded in 2014, Canopy stated it 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. Canopy noted it has experienced exponential growth and now provides a suite of cloud-based solutions including Practice Management and Tax Resolution to more than 5,000 tax and accounting professionals. Kurt Avarell, Canopy Founder and CEO, shared:
“Canopy is tapping into a market that has been notoriously underserved when it comes to technology. 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.”
Chetan Puttagunta, General Partner at NEA, also commented:
“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. 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 added that the funds will support its momentum in disrupting the $100 billion tax software and services market.