AI Tax Platform Onshore Secures $31M
Onshore, a company developing an AI-powered tax platform, has raised $31 million. The funding will be used to expand its workflow automation tools for the tax industry. This investment highlights continued venture capital interest in vertical SaaS companies applying AI to regulated and complex professional services.
- The company, which recently rebranded from SPRX, was founded in 2020 by CEO Dominic Vitucci, who previously worked at a top ten tax firm and built the company to address the inefficiencies he experienced firsthand. - Onshore is a graduate of Y Combinator's Winter 2023 batch and is headquartered in New York City, a growing hub for enterprise and fintech AI startups. - The platform tackles the complexity of R&D tax credits, which are among the most audited in the U.S., by automating the analysis of financial data to create audit-ready reports up to 80% faster than traditional methods. - The $31 million Series B round was led by FPV Ventures, with participation from ADP Ventures, Vertex Ventures, and Restive Ventures, bringing Onshore's total funding to $46 million. - FPV Ventures' co-founder and Managing Partner, Wesley Chan, stated that they back founders solving problems they know intimately and that "the most broken systems create the biggest opportunities," highlighting a key investment thesis for vertical SaaS. - To date, over 500 companies in manufacturing, energy, agriculture, and technology have used the platform to identify and defend more than $600 million in tax incentives. - The company's focus on a specific professional service aligns with a broader investment trend into vertical AI SaaS, which targets niche industries with specialized, high-retention software solutions. - New York City has seen a surge in AI-related jobs, with venture capital funding for NYC AI companies reaching $21.4 billion between 2018 and 2022, creating opportunities for roles like Machine Learning Engineer and AI Product Manager.
