Canopy announced that it has closed a $20 million Series B financing led by Pelion Venture Partners, with participation from existing investors New Enterprise Associates (NEA), EPIC Ventures, and Deep Fork Capital.
This round brings Canopy's total funding to $30 million to date. Canopy is a cloud-based platform built to make the notoriously painful tax filing process more efficient and transparent for both tax professionals and their clients.
Thousands of tax professionals and millions of their clients waste countless hours on tax filings every year; furthermore, practitioners are forced to juggle complex tax regulations, filing deadlines, and client relationships with outdated software. Until Canopy, there hasn't been a comprehensive, cloud-based software solution to help tax professionals manage this chaotic workflow.
"Our vision is that tax professionals will be able to focus their time and energy on consulting their clients, rather than the repetitive busywork they are typically buried in," said Kurt Avarell, Canopy Founder and CEO. Canopy saves tax practitioners an average of 5-10 hours per week. "This funding makes it possible for us to tackle some of tax professionals' biggest pain points, and for their clients to get the experience they're looking for when they turn to a professional for help with their taxes."
Canopy has grown by more than 20 times in the last year, making it one of the fastest growing FinTech startups and demonstrating the tremendous need that exists in the industry.
Tax professionals are also turning to Canopy to combat the increasing popularity of do-it-yourself tax options. "Modern tax professionals need to create an intuitive, transparent experience for their clients if they want to compete in today's market," Avarell said.
"Canopy is tackling one of the biggest, most cumbersome problems in the tax industry," said Chad Packard, partner at Pelion Venture Partners. "We're delighted to join in their mission to humanize the relationship between tax practitioner and client, as well as simplify the painful income tax process. Canopy is growing at an incredible pace. We're excited to see how they'll continue to improve the lives of tax practitioners and their clients across the country."
Canopy, headquartered in Lehi, Utah, is hiring. For more information, go to: canopytax.com/careers.