Canopy raises $30m for tax and accounting platform

Canopy, a practice management platform for tax and accounting professionals, has raised $30m in new financing.

The round was led by New Enterprise Associates (NEA), with participation from Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund, and EPIC Ventures. Last year, the FinTech raised $20m in a funding led by Pelion, which also featured NEA, Epic Ventures and Deep Fork Capital.

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 Installment Agreement, Penalty Abatement, Offer in Compromise, & more in half the time.

“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,” said Chetan Puttagunta, general partner at NEA. “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 provides a holistic suite of cloud-based solutions including Practice Management and Tax Resolution to more than 5,000 tax and accounting professionals. Those professionals in turn serve more than 1 million clients through the Canopy platform.

Its practice management solution features contact management, document management, workflow, email integration, client portal, IRS form tools, letter generator with e-signature, billing and invoicing, and transcripts delivery and analytics. While the tax resolution services features data intake survey, collection analytics, resolution service assistants, collaborative client portal, contact management, document management, and transcripts delivery and analytics.

Earlier this year, New Enterprise Associates led a $21m Series A round in Millennial-focused rewards platform Drop. Other backers in the round included Sierra Ventures, White Star Capital, ff Venture Capital, Portag3 Ventures and Silicon Valley Bank.

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