ScaleFactor Raises Third Round ($60M) In 13 Months After 700% ARR Growth In 2018

Another SaaS company in the financial technology space, Gusto, also recently raised a $200 million Series D for its self-described “people platform,” …

Austin-based fintech startup ScaleFactor has raised a $60 million Series C just seven months after closing its $30 million Series B, and just over a year after closing its $10 million Series A. In total, the company has raised $100 million since last July.

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The company forwent Texas-based investors, turning to mostly West Coast-based money for its Series C. Coatue Management led this latest round (its exits include Uber, Lending Club, Reddit and Lyft). (Its venture arm is based in San Francisco) Returning investors Bessemer Venture Partners, Canaan Partners, and Broadhaven Ventures also participated in the financing, in addition to new backers such as Vulcan, Stripes Group, and NextPlay Capital, and some angel investors. Kansas City-based Firebrand Ventures, which recently opened an office in Austin, put money in the round as well after having invested as far back as ScaleFactor’s seed raise in 2017. (The funding though, overall, bucks a trend we often see of Texas-based startups mostly raising capital from Texas-based VC firms. Specifically, 83 percent (or ten) of the top 12 active investors in Texas in H1 of this year were actually based in Texas).

ScaleFactor’s online financial SaaS platform is focused on building a back office for SMBs (small-to-medium sized business). The back office, as defined by Investopedia, “can be thought of as the part of a company responsible for providing all business functions related to its operations.”

The six-year-old company is growing rapidly and says it needs the capital to keep up with demand. Evidence of that growth can be seen in ScaleFactor’s surging annual recurring revenue (ARR), a metric that modern software companies use to track growth in their subscription income, and headcount. CEO and founder Kurt Rathmann told me that his company’s ARR grew by 700 percent in 2018 compared to the year prior (although from what he admittedly described as a relatively “smaller” base it’s still on the very high-end of the growth curve). He projects ScaleFactor’s ARR will grow by 300 percent this year as the firm approaches the 1,000-customer mark after adding “hundreds of new customers a month.”

The company started the year with 107 employees and recently crossed the 200 headcount mark. Notably, besides Rathmann, it has 30 CPAs on its team. Below is a look at its fundraising history.

With the new capital, Rathmann said ScaleFactor will focus on adding depth to its features and building out additional products and services so that it can serve as “a one-stop shop” back office for smaller companies. That will include “scaling its national presence” and building out its product and engineering team, Rathmann said. (Most startups boost hiring after raising new capital.)

The company wants to go beyond offering payroll services or helping with corporate cards for SMBs, which Rathmann believes are increasingly “really savvy buyers.”

“There’s a lot of them, and they need a lot of help,” he told Crunchbase News. “And they don’t traditionally have access to resources that bigger companies do. Ultimately, we want to provide more than just accounting and finance assistance. We want to help our customers with what’s happening tomorrow, or next week.” For example, ScaleFactor claims its “intelligent finance” offering takes data on a businesses’ patterns to predict things like being short on cash flow before payroll day, rather than the day of, to better assist its customers with controlling their financial operations.

Kurt Rathmann, Founder of ScaleFactor

“In time, we want to be known as the news feed for a business,” Rathmann said. “We alert our customers to what needs attention and make proactive suggestions with their bottom line in mind.” Looking ahead, the company is also eyeing the lending space.

Its headquarters are spread out over three offices in Austin, but the company will consolidate into a 50,000-square-foot new space in the hip, gentrifying eastside of the city, which is growing in popularity among startups. It also has offices in Denver and in Vancouver.

What They’re Saying

The company’s investors had laudatory things to say about the company’s product, and its resulting growth:

To Coatue Senior Managing Director Thomas Laffont, ScaleFactor “is building the most comprehensive financial SaaS platform on the market for SMBs.”

Byron Deeter, a partner at Bessemer Venture Partners, in a press release described ScaleFactor as “a rocket ship of growth.”

Meanwhile, Canaan partner Michael Gilroy notes that “SaaS is creating a level playing field for SMBs which previously had to resort to manual tasks via redundant hires.”

Fintech itself is having a moment. In recent weeks, we’ve reported on a number of notable fundings in the space, including Stackin’ raising over $4 million and MoneyLion’s $100 million Series C haul. Another SaaS company in the financial technology space, Gusto, also recently raised a $200 million Series D for its self-described “people platform,” which addresses a number of HR-related functions. Like ScaleFactor, it too is aimed at the small business market.

Illustration: Li-Anne Dias

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Reviewing Anaplan (NYSE:PLAN) & Progress Software (NYSE:PRGS)

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the superior investment?

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Progress Software and Anaplan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software 0 0 3 0 3.00
Anaplan 0 5 8 0 2.62
Progress Software currently has a consensus price target of $50.33, suggesting a potential upside of 20.30%. Anaplan has a consensus price target of $47.02, suggesting a potential downside of 15.74%. Given Progress Software’s stronger consensus rating and higher possible upside, equities analysts plainly believe Progress Software is more favorable than Anaplan.

Earnings and Valuation

This table compares Progress Software and Anaplan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progress Software $397.17 million 4.71 $63.49 million $2.13 19.64
Anaplan $240.64 million 29.95 -$131.02 million ($1.72) -32.44

Progress Software has higher revenue and earnings than Anaplan. Anaplan is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.1% of Progress Software shares are held by institutional investors. Comparatively, 35.5% of Anaplan shares are held by institutional investors. 1.7% of Progress Software shares are held by insiders. Comparatively, 37.2% of Anaplan shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.5%. Anaplan does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend. Progress Software has raised its dividend for 2 consecutive years.

Profitability

This table compares Progress Software and Anaplan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progress Software 13.30% 30.71% 14.02%
Anaplan N/A N/A N/A

Summary

Progress Software beats Anaplan on 12 of the 16 factors compared between the two stocks.

About Progress Software

Progress Software logoProgress Software Corporation develops business applications worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenEdge segment offers Progress OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; Progress Corticon, a business rules management system that enables applications with decision automation and change process, and decision-related insight capabilities; Progress Kinvey, a platform for building enterprise applications; NativeScript, an open-source application development platform; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. The Data Connectivity and Integration segment provides Progress DataDirect Connect software, which offers data connectivity using industry-standard interfaces to connect applications running on various platforms; and Progress DataDirect Hybrid Data Pipeline, a data access service that provides cloud and on-premises data sources for hybrid cloud applications, such as CRM, data management platforms, and hosted analytics. The Application Development and Deployment segment offers Dev Tools, a cross-platform, user experience design, quality assurance, debugging, and reporting suite; Sitefinity, a Web content management and customer analytics platform; and Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications. The company also provides project management, implementation, custom development, programming, and other services, as well as services to Web-enable applications; and training services. It sells its products directly to end users, as well as indirectly to application partners, original equipment manufacturers, and system integrators. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.

About Anaplan

Anaplan logoAnaplan, Inc. engages in the provision of cloud-based connected planning platform that helps connect organizations and people to make better and faster decisions. It also offers professional services, including consulting, implementation, and training. The company was founded by Michael Gould, John David Guy Haddleton, and Sue Haddleton in 2006 and is headquartered in San Francisco, CA.

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Oppenheimer Commences 22nd Annual Technology, Internet & Communications Conference

With the advances in disruptive new technologies such as artificial intelligence and blockchain, in addition to the explosion of applications related to …

NEW YORK, Aug. 1, 2019 /PRNewswire/ — Oppenheimer & Co. Inc. (“Oppenheimer”) – a leading investment bank, wealth manager, and a subsidiary of Oppenheimer Holdings (OPY) – will gather more than 120 innovative public and private companies in the technology industry at its 22ndAnnual Technology, Internet & Communications Conference in Boston on August 6-7, 2019. Leading companies attending the two-day event include Atlassian, Etsy, SAP, Take-Two Interactive and Zendesk.

“Technological innovation continues to be at the forefront of social, commercial and industrial processes, and has been a driving factor in the strong market performance over at least the last decade. With the advances in disruptive new technologies such as artificial intelligence and blockchain, in addition to the explosion of applications related to social media, existing industries are rapidly changing and new ones are being created,” said Erica L. Moffett, Managing Director and Associate Director of Research at Oppenheimer. “This pace of innovation will continue, and our conference provides an opportunity for investors to gain important insights into the technologies that will drive the entire value chain for the foreseeable future.”

This year’s event will feature four keynote presentations, including:

  • John Stephens, SVP and CFO of AT&T, on Tuesday morning
  • Muneeb Ali, CEO of Blockstack, on Tuesday afternoon
  • Ronan Dunne, EVP and Group CEO of Verizon Consumer, on Wednesday morning
  • Rod Smith, SVP, Corporate Finance and Treasurer of American Tower, on Wednesday afternoon

Oppenheimer Research Analysts will also attend the event to provide important insights on the impact of these technology trends. Attending analysts include:

  • Shaul Eyal, Managing Director and Senior Analyst covering Communications and Infrastructure Software
  • Jason Helfstein, Managing Director and Senior Analyst covering Internet
  • Timothy Horan, Managing Director and Senior Analyst covering the Communication and Cloud Services sector
  • Koji Ikeda, Director and Senior Analyst covering SaaS/Applications Software
  • Noah Kaye, Executive Director and Senior Analyst covering Sustainable Growth & Resource Optimization
  • Jed Kelly, Executive Director and Senior Analyst covering Online Travel and Internet
  • Ittai Kidron, Managing Director and Senior Analyst covering Data Infrastructure, Management and Virtualization
  • Colin Rusch, Managing Director and Senior Analyst covering Sustainable Growth & Resource Optimization
  • Richard Schafer, Managing Director and Senior Analyst covering Semiconductors
  • Brian Schwartz, Managing Director and Senior Analyst covering SaaS/Applications Software
  • Andrew Uerkwitz, Managing Director and Senior Analyst covering Emerging Technology and Services

Upcoming Oppenheimer events include Midwest Corporate Access Day on August 15 in Chicago, IL and the Security Summit on September 19 in New York, NY.

Oppenheimer & Co. Inc.

Oppenheimer & Co. Inc. (Oppenheimer), a principal subsidiary of Oppenheimer Holdings Inc. (OPY on the New York Stock Exchange), and its affiliates provide a full range of wealth management, securities brokerage and investment banking services to high-net-worth individuals, families, corporate executives, local governments, businesses and institutions.

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View original content:http://www.prnewswire.com/news-releases/oppenheimer-commences-22nd-annual-technology-internet–communications-conference-300894713.html

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Contrasting Progress Software (NASDAQ:PRGS) and Anaplan (NASDAQ:PLAN)

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the superior business?

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Progress Software and Anaplan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software 0 0 3 0 3.00
Anaplan 0 5 8 0 2.62

Progress Software presently has a consensus target price of $50.33, indicating a potential upside of 16.27%. Anaplan has a consensus target price of $47.02, indicating a potential downside of 17.43%. Given Progress Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Progress Software is more favorable than Anaplan.

Profitability

This table compares Progress Software and Anaplan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progress Software 13.30% 30.71% 14.02%
Anaplan N/A N/A N/A

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.4%. Anaplan does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend. Progress Software has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Progress Software and Anaplan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progress Software $397.17 million 4.87 $63.49 million $2.13 20.32
Anaplan $240.64 million 30.56 -$131.02 million ($1.72) -33.10

Progress Software has higher revenue and earnings than Anaplan. Anaplan is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.1% of Progress Software shares are owned by institutional investors. Comparatively, 35.5% of Anaplan shares are owned by institutional investors. 1.7% of Progress Software shares are owned by insiders. Comparatively, 37.2% of Anaplan shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Progress Software beats Anaplan on 12 of the 16 factors compared between the two stocks.

About Progress Software

Progress Software logoProgress Software Corporation develops business applications worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenEdge segment offers Progress OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; Progress Corticon, a business rules management system that enables applications with decision automation and change process, and decision-related insight capabilities; Progress Kinvey, a platform for building enterprise applications; NativeScript, an open-source application development platform; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. The Data Connectivity and Integration segment provides Progress DataDirect Connect software, which offers data connectivity using industry-standard interfaces to connect applications running on various platforms; and Progress DataDirect Hybrid Data Pipeline, a data access service that provides cloud and on-premises data sources for hybrid cloud applications, such as CRM, data management platforms, and hosted analytics. The Application Development and Deployment segment offers Dev Tools, a cross-platform, user experience design, quality assurance, debugging, and reporting suite; Sitefinity, a Web content management and customer analytics platform; and Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications. The company also provides project management, implementation, custom development, programming, and other services, as well as services to Web-enable applications; and training services. It sells its products directly to end users, as well as indirectly to application partners, original equipment manufacturers, and system integrators. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.

About Anaplan

Anaplan logoAnaplan, Inc. engages in the provision of cloud-based connected planning platform that helps connect organizations and people to make better and faster decisions. It also offers professional services, including consulting, implementation, and training. The company was founded by Michael Gould, John David Guy Haddleton, and Sue Haddleton in 2006 and is headquartered in San Francisco, CA.

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Critical Survey: Progress Software (NASDAQ:PRGS) and Anaplan (NASDAQ:PLAN)

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the better investment?

Progress Software (NASDAQ:PRGS) and Anaplan (NYSE:PLAN) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Progress Software and Anaplan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software 0 0 3 0 3.00
Anaplan 0 5 8 0 2.62

Progress Software presently has a consensus target price of $50.33, suggesting a potential upside of 16.27%. Anaplan has a consensus target price of $47.02, suggesting a potential downside of 17.43%. Given Progress Software’s stronger consensus rating and higher possible upside, analysts clearly believe Progress Software is more favorable than Anaplan.

Profitability

This table compares Progress Software and Anaplan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progress Software 13.30% 30.71% 14.02%
Anaplan N/A N/A N/A

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.4%. Anaplan does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend. Progress Software has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Progress Software and Anaplan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progress Software $397.17 million 4.87 $63.49 million $2.13 20.32
Anaplan $240.64 million 30.56 -$131.02 million ($1.72) -33.10

Progress Software has higher revenue and earnings than Anaplan. Anaplan is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

91.1% of Progress Software shares are held by institutional investors. Comparatively, 35.5% of Anaplan shares are held by institutional investors. 1.7% of Progress Software shares are held by company insiders. Comparatively, 37.2% of Anaplan shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Progress Software beats Anaplan on 12 of the 16 factors compared between the two stocks.

About Progress Software

Progress Software logoProgress Software Corporation develops business applications worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenEdge segment offers Progress OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; Progress Corticon, a business rules management system that enables applications with decision automation and change process, and decision-related insight capabilities; Progress Kinvey, a platform for building enterprise applications; NativeScript, an open-source application development platform; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. The Data Connectivity and Integration segment provides Progress DataDirect Connect software, which offers data connectivity using industry-standard interfaces to connect applications running on various platforms; and Progress DataDirect Hybrid Data Pipeline, a data access service that provides cloud and on-premises data sources for hybrid cloud applications, such as CRM, data management platforms, and hosted analytics. The Application Development and Deployment segment offers Dev Tools, a cross-platform, user experience design, quality assurance, debugging, and reporting suite; Sitefinity, a Web content management and customer analytics platform; and Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications. The company also provides project management, implementation, custom development, programming, and other services, as well as services to Web-enable applications; and training services. It sells its products directly to end users, as well as indirectly to application partners, original equipment manufacturers, and system integrators. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.

About Anaplan

Anaplan logoAnaplan, Inc. engages in the provision of cloud-based connected planning platform that helps connect organizations and people to make better and faster decisions. It also offers professional services, including consulting, implementation, and training. The company was founded by Michael Gould, John David Guy Haddleton, and Sue Haddleton in 2006 and is headquartered in San Francisco, CA.

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