Practice management platform for tax and accounting Canopy has increased its latest funding round to $42m.
Earlier in the year, the company announced it had closed an investment on $30m, with contributions from New Enterprise Associates (NEA), Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund, and EPIC Ventures.
The additional $12m has been injected by Tenaya Capital and Nyca Partners to further Canopy’s platform development.
Founded in 2014, Canopy provides easy-to-use software which cuts out tax practice busywork, improves the client experience, and brings all the different tools a practitioner needs under one roof.
It enables users to manage their practice, contacts, documents, workflow, & more in one place. The company also claims to provide lucrative services like Instalment Agreement, Penalty Abatement, Offer in Compromise, & more in half the time.
Canopy has made several developments this year, with the formation with a partnership with Wells Fargo Strategic Capital, and the launch of its Notices solution. The new service helps tax and accounting professionals to research, respond and resolve IRS issues for clients.
Utah-based Canopy also moved past 5,000 users and services over 1 million taxpayers.
Nyca managing partner Hans Morris said, “Accounting and tax firms rave about the software – which is a rare thing to hear – and the pipeline of product releases and feature enhancements will only increase the excitement. We think Canopy could become the category-defining company.”
With this new batch of capital, Canopy has raised a total of $72m since its foundation. Prior to this round, the company secured a $20m investment from Pelion, NEA, Epic Ventures and Deep Fork Capital last year.
The accounting sub-sector of the insfrastructure and enterprise software space was dominated by the North American market last year, according to data by FinTech Global. The region received 55 per cent of the $421m that was invested in the space in 2017.
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