Fresh funding from Index Ventures and Sequoia highlights rapid growth of sales tax needs at software companies, their outstanding customer adoption, and the company’s innovative approach
SAN FRANCISCO, March 01, 2022--(BUSINESS WIRE)--Anrok, the sales tax solution for software-as-a-service (SaaS) businesses, announced $20M in new funding to help software companies manage sales tax end-to-end and maximize future revenue potential.
The funding was led by Index Ventures and Sequoia, with a valuation north of $100M. With this capital, Anrok will further extend its product offering for customers, expand its team, and further the vision of being the audit source of truth for the internet economy.
"Software is taxable in more ways and in more states and cities than ever before. The solutions made for the offline world fall short of capturing the nuances of how software is taxed and the complexities of evolving internet subscriptions," said Michelle Valentine, co-founder and CEO of Anrok. "The compliance challenges faced by today’s finance leader is overwhelming, which is why Anrok is designed to connect to every system in their billing and payments stack with just a few clicks."
Demand for a sales tax solution is evident by Anrok’s blazing growth. In the last six months alone, revenue has increased by more than 7x. The company has more than doubled its team over a similar period to support this growth.
"We’re at the stage where remote and hybrid work have become the norm for software companies. One lesser known consequence of this trend is that having workers in different states increases the complexity of a company's sales tax requirements. Anrok makes this easy, and has found product-market fit incredibly quickly as a result," said Mark Goldberg, Partner at Index Ventures. "We’re excited to partner with Anrok to accelerate its adoption with software companies and continue to hire world class talent."
Anrok’s end-to-end platform gives SaaS businesses everything they need to manage sales tax out of the box. From monitoring sales and transactions against state-specific thresholds as well as tracking how remote employees impact their sales tax exposure, finance leaders can be automatically alerted when new obligations emerge. Its highly automated solution enables businesses to register in new states directly within the platform, saving hours of time and linking registration workflows with when sales tax collection begins.
"Anrok has created a new approach to solving sales tax by productizing common pain points, such as onboarding and registration," said Bryan Schreier, Partner at Sequoia. "We’re thrilled to double down with Michelle and the Anrok team as they deliver an unparalleled experience for finance organizations."
This degree of anticipating user needs has earned the trust of some of the fastest growing SaaS businesses. Industry-leading companies such as Airbase, AgentSync, Front, Gem, Persona, Productboard, and Vanta rely on Anrok to monitor sales tax exposure, calculate sales tax across their invoicing tools, and file and remit on their behalf.
"Identifying where and when a company triggers nexus for sales tax is complicated. Understanding how to calculate sales tax on your customer invoices and how to remit sales tax is even more complicated," said Dave Jaras, Head of Finance at AgentSync. "Anrok has supported AgentSync throughout this process and offers a solution that will scale with our growth. I no longer worry about sales tax compliance thanks to Anrok."
Anrok is the modern sales tax solution for SaaS businesses and is available today. Prospective customers can request a demo through the Anrok website (www.anrok.com). In addition to the monitoring and calculation platform, customers gain access to Anrok’s state registration, filing, and remittance services for no additional fee.
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