Home Business Software Cloud accountancy firm completes $5m raising

Cloud accountancy firm completes $5m raising

Cloud accountancy software provider Practice Ignition has raised $5 million in series A funding from leading Australian venture capital funds and individual investors.

The money will help accelerate the company's international expansion and deliver more product to existing customers.

A statement from the company said the fund-raising was led by Microequities Venture Capital Fund and included Black Sheep Capital, Right Click Capital and existing individual investors Craig Winkler and Adrian Di Marco.

The raising comes after previous investment of $2.2 million in seed funding in 2014 and 2015.

Practice Ignition provides automated accounting software as a service to help accountants handle their affairs in the cloud.

The company, which has been serving global clients from the start, serves approximately 1000 accounting firms which handle the accounts of more than 40,000 small businesses and processing $100 million in payments each year.

"Our international strategy has paid off, with over 50% of our revenue generated overseas. This new capital will enable us to ramp up product and marketing in key markets, expand our team and better serve our amazing customers," said Guy Pearson, Practice founder and chief executive.

The company is looking to double its team from 30 to 60 over the next two years as it expands in the US, Canada and the UK.

Howard Leibman of Microequities Venture Capital Fund and Adrian Di Marco will join the Practice Ignition board in wake of the fund-raising.

"We’re on a mission to help small businesses by empowering one of their most trusted partners – accountants and professional services firms – to serve them better. These firms want better data to help segment and serve clients and they want to free time up from routine tasks to focus on their clients. Practice Ignition enables this.” Pearson said.

Leibman commented: "Practice Ignition has built an exceptional platform that delivers real value to professional service firms of all sizes. The product addresses a truly global market opportunity and, with a customer base already spanning some 20 countries, the team has clearly demonstrated its ability to scale activities well beyond Australia.

"We’re truly excited to be leading this financing round and look forward to working alongside Guy, Dane and their team as they continue to drive innovation in the delivery of professional services around the world.”

Right Click Capital's Benjamin Chong said, “Practice Ignition is a ‘great example’ of Australian SaaS start-ups gaining rapid global traction in the business-to-business space.”

"Cloud technology continues to grow and evolve rapidly. We see Practice Ignition as a frontrunner. The platform streamlines the tedious day-to-day tasks for accountants and small business owners alike, freeing their capacity to deliver better client experience.”

“The funding also gives Practice Ignition the opportunity to tap into Right Click Capital’s partnership with the Draper Venture Network. This opens doors for both investors in the Growth Fund and the businesses the fund supports. The Growth Fund will continue to focus on investing in early-stage high-growth tech businesses across Australia, New Zealand and South East Asia.”

Dan Gavel, director of Black Sheep Capital said: “Our focus is on investing in businesses that make other businesses better, and Practice Ignition is an exciting optimisation tool for professional services firms particularly in creating more efficient and effective processes.

"We were also attracted by the quality of Practice Ignition’s team, domain expertise is always a great asset, the traction they’ve had to date, and their vision to revolutionise the professional services industry. This latest round will allow Practice Ignition to take on global markets and provides them the opportunity to become Australia’s next SaaS success story.”

LEARN HOW TO BE A SUCCESSFUL MVNO

Did you know: 1 in 10 mobile services in Australia use an MVNO, as more consumers are turning away from the big 3 providers?

The Australian mobile landscape is changing, and you can take advantage of it.

Any business can grow its brand (and revenue) by adding mobile services to their product range.

From telcos to supermarkets, see who’s found success and learn how they did it in the free report ‘Rise of the MVNOs’.

This free report shows you how to become a successful MVNO:

· Track recent MVNO market trends
· See who’s found success with mobile
· Find out the secret to how they did it
· Learn how to launch your own MVNO service

DOWNLOAD NOW!

Sam Varghese

website statistics

A professional journalist with decades of experience, Sam for nine years used DOS and then Windows, which led him to start experimenting with GNU/Linux in 1998. Since then he has written widely about the use of both free and open source software, and the people behind the code. His personal blog is titled Irregular Expression.