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SAN FRANCISCO, Nov. 22, 2024 -- Fondo, the all-in-one accounting platform for startups, has successfully closed an oversubscribed $7 million seed funding round. The round was led by Money Forward, with additional participation from Y Combinator, Motley Fool Ventures, and Next Coast Ventures. Other notable investors include the a16z Scout Fund, Index Ventures Scout Fund, and Costanoa Ventures Scout Fund. The funding comprises $4.6 million in equity and a $2.4 million debt facility secured from Capchase, positioning Fondo for accelerated growth.
This funding round values Fondo at $66 million and underscores its rapid growth and solid market presence. Trusted by over 1,200 high-growth startups, including one-third of the most recent Y Combinator cohort, Fondo has achieved over $6 million in ARR and reached profitability—a significant milestone in today's competitive market.
"Partnering with Money Forward and other top-tier investors validates Fondo’s vision to simplify accounting for startups," said David J. Phillips, Founder and CEO of Fondo. "Our mission is to help startups reach their full potential by making financial management seamless so that founders can focus on building their businesses."
Since its inception in 2020, Fondo has been dedicated to automating critical financial processes, including bookkeeping, tax filings, and tax credits. By combining cutting-edge software & AI with the expertise of experts accountants, Fondo serves startups from pre-seed to Series B+ with efficiency and precision.
The company's executive team is driven and confident in Fondo's bright future: David J. Phillips (CEO & Founder), Ali Ghanimati, CPA (Chief Accounting Officer), Brian Simmons (Chief Product Officer), and Diane E. McCormack (Chief Operating Officer).
Investors Highlight Growth Potential
"Fondo's team and technology have created a simple and reliable solution that addresses this pain point, and their remarkable growth demonstrates the strong demand for their services and their capability of scaling the operations. We have invested in Fondo because we were bought into the vision of David, CEO of Fondo, on how he wants to help companies by providing an autopilot for their accounting and tax operations. This is highly aligned with our Mission of solving financial problems and moving the society forward." said Sandy Kimura, CEO of Money Forward America.
The seed round will support Fondo’s product development, scaling its team, and enhancing its platform. With new hires planned across product, engineering, accounting, and go-to-market roles, and an average of 250%+ annual growth since launching, Fondo is set to continue its growth trajectory. The round was led by Money Forward and includes participation from, Motley Fool Ventures, Next Coast Ventures, Y Combinator, Twenty Two Ventures, 1121 VC, a16z Scout Fund, Index Ventures Scout Fund, Costanoa Ventures Scout Fund, Rho along with angels, Craig J. Lewis (CEO & Founder @ Gig Wage), Chris Bakke (Serial Founder - Interviewed, Laskie acq. by X), Loren Brill (CEO & Founder @ Sweet Loren's), James Hawkins (CEO & Founder @ PostHog), Austen Allred (CEO & Founder @ Bloom Institute of Technology), Mike Rosengarten (Serial Founder - Camino, OpenGov acq. by Cox), Everett Cook (CEO & Founder at Rho), Todd Johnson (Product Leader, Costanoa Ventures Scout Fund), Nitzan Shapira (prev. CEO & Founder @ Epsagon acq. by Cisco, Index Ventures Scout Fund), Warren Shaeffer (Serial Founder - Knowable, Vidme, a16z Scout Fund), Theo Browne (CEO & Founder @ Point.gg, a16z Scout Fund), Kush Patel (CEO & Founder @ AppAcademy), Greg Castle (Founder @ Anorak.vc), Harsh Patel (CEO & Founder @ 0xMacro), Josh Cohenzadeh (CEO & Founder @ EmergeTools), Matt Doka (CTO & Head of BD @ SumUp), Jason Levin (CEO & Founder @ MemeLord Technologies), Paul Cameron (President @ The Laundry Room), Todd Burns (SVP @ Newfront), Capchase debt and others.
Fondo previously raised a $3M pre-seed round from Y Combinator, Liquid 2 Ventures, Transmedia Capital, Capchase debt, and others as reported by Axios.
