SF Startup Inscope Raises $14.5M for AI Accounting
San Francisco-based Inscope has secured $14.5 million in a Series A funding round. The startup is building an AI platform to automate the preparation of financial statements for accounting firms and enterprises. The funding targets the replacement of a highly manual workflow with AI-driven acceleration and compliance.
- The Series A round was led by Norwest Venture Partners, with participation from Storm Ventures and existing investors Better Tomorrow Ventures and Lightspeed Venture Partners. This brings the startup's total funding to $18.8 million, following a $4.3 million seed round in 2023. - Co-founders Mary Antony (CEO) and Kelsey Gootnick (COO) are both former accountants and controllers who previously worked at high-growth tech companies, including Flexport, Miro, and Hopin. They founded Inscope in 2023 after experiencing the manual challenges of financial reporting firsthand. - Inscope's AI doesn't try to generate entire financial statements from scratch; instead, it focuses on automating the final, painstaking checks that consume significant time. These tasks include arithmetic verification, formatting consistency, and ensuring numbers tie out across different documents. - The platform is designed to keep a human in the loop, providing transparent change logs and justifications for review, which is critical for a profession that requires auditability. According to the company, the tool can automate over 60% of the manual preparation and review work. - In the last 12 months, Inscope has reportedly increased its customer base by 5x and its annual recurring revenue by over 30x. Its clients include CohnReznick, one of the top 15 largest accounting firms in the U.S. - The company competes in a market with established players like Workiva and Donnelley Financial Solutions, but aims to differentiate by focusing its AI on the "last-mile" assembly of external reports and disclosures.
