Fondo recently raised an oversubscribed $7 million seed round led by Money Forward, a Tokyo-based fintech company, with participation from Y Combinator, Motley Fool Ventures, Next Coast Ventures, a16z Scout Fund, Index Ventures Scout Fund, and Twenty Two Ventures. The funds will be used to invest in products and automation, including building an AI agent for its internal team and customers. The company is also hiring across product, engineering, accounting, and other roles.
Key takeaways:
- Entrepreneurship is on the rise in the U.S., but there is a shortage of accountants, with 75% of CPAs expected to retire in a decade.
- David Phillips, a serial entrepreneur, has founded Fondo, a bookkeeping platform that uses software, AI, and accounting experts to help startups and small- to medium-sized businesses.
- Fondo has secured approximately 1,200 customers, reached annual recurring revenue of $6 million, and is profitable. It recently raised an oversubscribed $7 million seed round, valuing the company at $66 million.
- Fondo plans to use the proceeds to invest in products and automation, and is building an AI agent for its internal team and customers to extract insights and analysis about their financial statements, accounts, cash flow, and more.