Fondo Receives $3MM in Pre-Seed Funding to Assist Startups with Taxes
San Francisco, California--(Newsfile Corp. - February 24, 2023) - Fondo, an all-in-one accounting platform for startups, has raised $3MM in pre-seed funding. The San Francisco company, founded by CEO David J. Phillips, received $1.8MM in non-dilutive (non-equity) financing from Capchase as well as $1.2MM in equity from Y Combinator, GMO Venture Partners, Liquid2 Ventures, and Transmedia Capital. Phillips states that with the funding, Fondo will invest in its long-term success, including product development and the expansion of its team.
"The $3MM in pre-seed funding is helpful for us because now we will be able to significantly invest in hiring, developing our product, and bringing Fondo to more founders," Phillips says. "We are excited to be able to help more early-stage founders use our intuitive dashboard to navigate tax compliance and credits with clarity and speed."
Fondo will continue to help early-stage startups without an in-house finance team to streamline their bookkeeping, taxes, and tax credits. Startups are eligible for up to $500,000/year in cash-back tax credits, and Fondo assists them with compiling accurate financial statements and filing taxes on time, which are required when claiming these lucrative tax credits. Tax credits offer a complementary path to potential fund growth and are not dependent on VCs and the funding market.
With the pre-seed funding, Fondo will work to enable its clients to extend their runway and attempt to invest in growth during a time when it's very difficult to bridge any round. "In 2023 Fondo is excited to level the playing field for new startup founders with a tech-enabled platform that can make their accounting and taxes easy, accurate, and fast," says Phillips.
Fondo is a San Francisco-based startup that was founded in 2020 by CEO David J. Phillips and serves as an all-in-one accounting platform. Fondo specializes in helping early-stage companies get their taxes filed, books closed, and cash back from the IRS (the average startup gets back $21,000 per year). Fondo was ranked number one in the fintech category on Product Hunt for August 2022 and secured over $3.5MM in cash back from the IRS in Q4 2022 for its customers. In 2022, Fondo experienced top decile growth, including doubling its team to 54 people and nearly tripling its annual recurring revenue to $3MM. Today, more than 500 startups use Fondo.
For more information about Fondo, please see its website or contact:
Dylan S. Phillips, Fondo
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/156001