Dr. Cash – $25M; Cr. Series B APIC – $25M
Jun 21, 2017 | By Michael Whitmire
Back in December of 2012, I was a Senior Accountant for an LA-based software company sitting in a board room with 30 of my team members. The purpose of this daily meeting was to update our Controller on the status of the month-end close. On this particular day, we were behind schedule so the meeting was held as we began our 2nd shift (you know, that one that starts with the 5pm dinner order). Unfortunately this was pretty standard.
Our business had a very successful IPO 18 months prior, but accounting was struggling to close the books in a more demanding environment. As we reviewed each team member's close status and the meeting dragged on for its tedious hour, I finally had the thought, “there has got to be a better way!” Two weeks later I quit my job and began working on the business plan for what would become FloQast.
In Summer 2013, I launched FloQast with my co-founders Cullen Zandstra and Chris Sluty. Fast-forward four years and today that idea is the basis for software that more than 250 accounting teams trust for their month-end close needs and a company that employs more than 60 in California and Ohio.
Close management software created by accountants for accountants that works the way they already do has taken root and is driving FloQast’s 40% quarter over quarter growth. It is also a solution that works as advertised as evidenced by an industry-leading renewal rate (FloQast enjoys 20% positive churn--something very rare) and high customer satisfaction--more on this later. On average FloQast customers reduce their close time by 3 days and improve their month-end close accuracy.
Because of this growth and metrics, FloQast is attracting more and more attention. This includes attention from the financial community. Today we announced that Insight Venture Partners has invested $25 million to help us accelerate the expansion of our product capabilities, move into overseas markets and further scale our go-to-market capabilities.
This a lot of money and when an investment like this is made, there is a lot of due diligence performed. We’ve spent a lot of time with Insight this last month. They’ve reviewed all aspects of our business in detail, spent countless hours with our leadership team walking through our processes and business metrics, surveyed our customers and spoken individually with many of them. And while Insight is satisfied that we have a very robust, growing business, their investment is being made with an eye to the future.
There is a reason why FloQast has the highest customer satisfaction score of any Financial Tech solution on peer-to-peer review sites like G2Crowd. When you bring together a bunch of former accountants who know intimately how accounting teams work and where they’re challenged, you can tailor solutions that best fit their needs. We’re focused on building user-friendly, yet powerful, accounting solutions that work the way accounting teams do. While we’re carving out a name for ourselves in close management, this is but the start. We’ve got the team, product, expertise and backing to build a great software company and that is exactly what we’re doing.
If you would like to learn how to improve your month-end close process and how FloQast can help your accounting team close faster and more accurately, check out the Definitive Guide to Close Management.