- Tax assistance startup ComplYant announced that it raised $4 million in February.
- The startup offers tax assistance services to small businesses.
- Discover the 13-page pitch deck used by the fintech startup.
After 14 years in tax accounting, Shiloh Johnson had formed a core philosophy around business accounting: everyone deserves to understand their business’s money and business owners should be present in their accounting process. .
She wanted to help small businesses understand “this is why you need to do what you do and why you need to change the way you think about tax and be present in your accounting process,” she told Insider.
The Los Angeles native wanted small businesses to not only understand business taxation, regardless of size, but also to find the tools they needed to prepare their taxes in one place. So Johnson has developed a software platform that provides just that.
ComplYant’s tax assistance services allow users to manage taxes for a single or multiple businesses from a single dashboard, track tax due dates and business license renewal dates, and sync with other business management apps like Quickbooks, Stripe, Shopify, Square, and Clover. Its new feature is a Stripe-licensed tax savings automation tool that sets aside money from users’ bank accounts into a dedicated savings account for future tax bills.
Johnson discovered the need for ComplYant during the four years she owned her own tax accounting practice. People have come to her with, as she says, crazy tax problems and no idea what to do about it. She helped paying clients and sometimes did pro bono work. She would try to find others that she couldn’t handle for resources that fit their budget.
“I was looking for websites where I could just send them to get a quick overview of all the taxes they were supposed to pay. I couldn’t find anything like that,” she said.
Instead of accepting its non-existence, she decided to build it herself.
ComplYant won over 100 clients before raising venture capital funds
The startup’s founder said she invested around $50,000 in building the foundations of the software platform between 2019 and 2020, then tested the market with a sample of business owners she knew. When she managed to get 100 customers, Shiloh said she thought it was time to raise funds to further develop the platform.
California venture capitalists Slauson & Co., Mucker Capital and Tale Venture Partners gave Johnson her first pre-seed check in 2021. She raised a total of $1.5 million between VC and program money acceleration, ending up on Business Insider’s list of 48 black women who received $1 million or more in venture capital money.
In February this year, venture capital firms became follow-on investors for a seed round alongside new investor Craft Ventures and raised $4 million, bringing its total capital to $5.5 million. of dollars. Pitchbook estimates the company is now worth $22.3 million.
ComplYant’s team has grown from five to 17 people over the past year to manage the more than 2,000 small business owners on its platform. According to Johnson, the company saved customers more than 70,000 hours and $4 million in late fees. The money from its new fundraiser will be used to hire more employees, develop the software platform and subsequently support more customers.