Cloud accounting software company Intacct has just raised $45 million. The company says it will use the money to improve its product and do more marketing.
That may be a good idea. If you haven’t heard of the company yet, you’re not alone.
Intacct is still relatively young and small, used by a little more than 7,300 customers. Those customers range from accounting firms to tech companies and even non-profits and faith-based organizations.
The cloud software provider positions itself as a replacement for QuickBooks and similar on-premises accounting software for larger companies — like Sage and Oracle.
With prices starting at $400 per month, Intacct is obviously targeting the larger end of small businesses and midsize companies.
Though small, the company experienced some rather impressive growth last quarter. Intacct reports the business saw a 40 percent increase in the number of bookings compared to last year. The company also says it experienced almost 60 percent growth in new customer acquisition for the quarter ending December 2013.
In an official announcement on the Intacct website, CEO Robert Reid said:
“As the fastest growing mid-market cloud financial software vendor, Intacct has already established itself as a major player in the largest business application software segment. Our continued success in the industry, along with increased market share, has attracted additional capital for the company. This new round of funding will enable us to further accelerate our growth, drive new product enhancements, and reach into new markets.”
The new round of funding was led by Battery Ventures. Other investors include Bessemer Venture Partners, Costanoa Venture Capital, Emergence Capital, Sigma Partners, Split Rock Partners and Morgan Creek Capital Management.
The market for cloud-based accounting systems for small to medium-sized businesses is getting crowded meaning more choices for small business owners. Late last year, the cloud-based accounting software company Xero announced raising $150 million in funding for further expansion in the U.S. market.
Like Xero, the San Jose company is focused on promoting its cloud-based software as a service model as distinctive from older on-premises systems.
In the release, Intacct spells out this differentiation:
“Intacct and its channel partners continue to see the largest growth coming from companies looking to switch off of outdated on-premises financial systems from Microsoft and Sage to Intacct’s modern, cloud financial software. These companies have struggled with software designed well over 25 years ago (pre-Internet) that requires multiple add-ons, extra hardware, costly expert customization, and ongoing IT support just to keep up with their constantly changing business needs.”
Listed among the companies customers are a variety of firms including Wikipedia, Signal 88 Security, Meetup and Grubhub
Holy cow! That’s a large round for 7300 customers. Glad to see more competition in the SMB space though. Makes for better products and better pricing.
Yes indeed, Robert. And who had even heard of Intacct prior to this…except of course their clients, some well known. They certainly would seem to need a bit of help in marketing. The other thing that’s interesting about the company (to me, anyway) is that they seem focused on appealing to both small firms moving from QuickBooks and large firms leaving on-premises enterprise systems. One can only assume they offer a pretty wide range of services to be able to appeal to so many kinds of customers.
At their rates, it is not as surprising that they are able to raise millions. But if they are going to use that to expand their business, then that’s good news for them. If they use it right, I can only see them expanding especially now that cloud accounting softwares are of very high demand.
Nice to see some competition for Quickbooks. Not the biggest fan (from a technical POV), but often the only choice for a lot of Small Businesses. To really break Intuit’s hold on the SMB space, Intacct will have to convince Accountants.
Good News. Quickbooks is not customer responsive. Failure to support windows 8 on older (2011 is not old) versions is not acceptable. Quickbooks cannot convert to pdf files in windows 8. They have know about the problem, and their response is to buy the latest version. As a small business owner, I cannot afford to buy new software every year. Love the program, but not the cost of Quickbooks.
Pfff…$400 a month? That’s not “Small” business software.