Canopy Raises $35 Million Series B2 Investment
May 9, 2024, South Jordan, Utah
Canopy, the South Jordan, Utah-based firm-wide operating system for accountants, has announced it has raised $35 million that the company is calling a B2 round.
The over-subscribed round was led by existing investors that invested in the December 2021 Series BB round of the same amount: Ten Coves Capital (Darien, Connecticut), the round also received sizable contributions from existing investors Pelion Venture Partners (Salt Lake City, Utah), Ankona Capital (Newport Beach, California), and NewView Capital and Tenaya Capital (San Francisco).
The funds from this investment will be channeled towards doubling down on Canopy’s vision for leveraging AI to make firms exponentially more efficient.
Canopy offers a suite tools for client management, document management, workflow, and time and billing, as well as specialty compliance solutions, that help accountants obtain IRS transcripts and resolve notices quickly.
Founded in 2014 with the mission of freeing up accountants so they can spend their time helping their clients succeed, Canopy delivers the industry’s first firm-wide operating system. This suite of sophisticated, AI-enabled tools is tailored to power the entire customer lifecycle from proposal to payment, including client engagements, document management, workflow optimization, and time and billing. Canopy has earned widespread recognition for its innovative, market-leading solutions, including being named one of G2's "Top 100 Fastest Growing Softwares of 2024."
Canopy’s solutions are SOC2-certified and data-encrypted. Developed by the American Institute of CPAs (AICPA), SOC2, or Service Organization Control 2, is an auditing procedure that ensures service organizations manage data in a manner that safeguards both their interests and their clients’ privacy. SOC2 specifically targets providers who store customer data in the cloud, marking a commitment to security and privacy.
Reacting to the news of the Canopy fundraising, industry thought leader Darren Root commented, “I’ve been watching and waiting for many years for a company to emerge as the modern default operating system for accounting firms, relieving firms from the need to string together a host of disparate point solutions. That company is Canopy. They’ve invested tremendous resources into their product, and Canopy is now poised to capture the market.”
Due to its significant product investment to date, Canopy is capable of effectively serving all firms, from sole proprietors to those with hundreds of employees. In addition to investing in its product, Canopy has spent substantial time and resources making it easy for firms to move their data from legacy platforms to Canopy.
"This fresh round of funding is a testament to our rapid growth as well as a vote of confidence in our vision of helping accounting firms adopt AI to better serve their clients," said Canopy CEO Davis Bell. "Accountants today spend tremendous amounts of time on non-strategic, non-client- facing tasks. We are deploying AI to automate those tasks, enabling accountants to spend all of their time doing what they actually love: working directly with clients on strategic activities.”
“In a world awash in AI hype, Canopy is laser-focused on leveraging modern tech to solve the real-world pain points of accounting firms,” said Ned May, Co-Founder and Managing Partner of Ten Coves Capital. “We’re fortunate to have led Canopy’s last growth financing in 2021 and are thrilled to increase our support for the business as it doubles down on serving the needs of accounting firms of all sizes.”
In 2019, the company appointed Davis Bell as CEO to focus the company exclusively on practice management and lead it to growth. Around the same time, Canopy raised $13 million in both funding and debt financing. Two months ago the company moved from its Draper location to a new location in South Jordan (see image above).
As TechBuzz reported on June 29th, 2021, Canopy raised a $11 million Series AA round.
In December 2021, Canopy raised a $35 Series BB round, also covered by TechBuzz. These funds were used for product development, customer adoption and retention efforts, and market expansion.
Foley & Lardner LLP served as Canopy's legal adviser to Canopy for this transaction. The Foley deal team was led by partner Jeffrey Bowman and included senior counsel Mark Mallery and associate Rossetti Farrell.
For additional information about Canopy and its offerings, please visit www.getcanopy.com.
Content and photo credit: Chris Howard and Chad Saley at Canopy