Canopy Raises $11M For Its Practice Management Software
Canopy, a practice management software provider for accounting businesses, secured an additional $11 million in funding on June 29. The latest funding round involved a new investor called Ankona Capital, joined by long-term investors NewView Capital and Tenaya Capital.
With the COVID-19 pandemic shifting business toward working remotely, this practice management software needs to develop further to accommodate larger companies.
The Utah-based company plans to use the funds to continue further improving its cloud-based software. Davis Bell, the Canopy CEO, said that the company has invested lots of money into its platform and plans to continue investing. The funds from this funding round will also be geared toward further development of the existing company offers.
“It’s less about adding and more around just enhancing each of our product subcategories: document management, CRM and client portal, workflow, time and billing, and payments and invoicing. We’ve got big plans for all of those.” Bell added.
Both old and new investors have high hopes for this team. Pelion Venture Partners, one of the original investors, backed Canopy again in the latest round, satisfied with the company’s progress. A general partner at Pelion, Chad Pacard, said “We first invested in Canopy because we knew that the accounting software industry was stagnant and ripe for disruption. Over the past 18 months, Canopy has executed incredibly well on the vision of bringing modern cloud software to accounting practices, and we’re thrilled to continue to back the team at Canopy in their quest to modernize the accounting software stack.”
It didn’t always go as smoothly for Canopy, as the company had its fair share of setbacks since starting out back in 2014. The company’s ambitious plan to branch out into tax preparation software failed, and Canopy had to lay off 81 full-time employees, brought in during a previous hiring spree. Additionally, customers will have to wait for the new version of Canopy’s tax preparation software, as the latest round of funds will not go towards reviving that aspect of the company’s offer.
Instead, the company has already started hiring new product development employees. The team was also recently relocated into a smaller office, emphasizing developing practice management software and its integrations with other accounting and tax software products.
When asked about future integrations, Canopy’s CEO had the following to say: “We have some exciting developments. I can’t talk about them quite yet, but we’re getting some good traction with some established players that we think will be very helpful on that front”.