- Founded: 2014
- Ceased Operations: 2020
What did ScaleFactor do?
ScaleFactor was a cloud-based accounting software company that provided a suite of tools for small businesses, including automated bookkeeping, proactive alerts, and other features. ScaleFactor’s software was designed to help small businesses save time and money by automating many of the tasks associated with accounting. ScaleFactor’s platform also provided businesses with real-time insights into their financial performance, which could help them make better business decisions.
ScaleFactor raised over $104 million in funding from investors such as Bessemer Venture Partners, Canaan Partners, and Coatue Management.
Who started ScaleFactor?
Founder and CEO Kurt Rathmann
Why did ScaleFactor go out of business?
The COVID-19 pandemic had a significant impact on the small business market, and ScaleFactor was no exception. ScaleFactor’s customers were forced to close their businesses or operate at a reduced capacity, which led to a decrease in demand for ScaleFactor’s services. ScaleFactor faced stiff competition from other cloud-based accounting software companies, such as QuickBooks Online and Xero.
ScaleFactor struggled to scale its business quickly enough to meet demand. The company’s software was complex and required a high level of customer support, which led to high costs. ScaleFactor was reportedly burning through cash at a rapid rate. ScaleFactor had raised over $100 million in funding, but this was not enough to sustain its operations.