Canopy Extends Latest Funding Round to $42M

Canopy, the leading cloud-based practice management platform for tax and accounting professionals, announced an extension to their latest funding round led by NEA, bringing the total round to $42 million. This additional injection, provided by Tenaya Capital and Nyca Partners will further enable Canopy to continue building the most robust and intuitive tax practice efficiency suite on the market.

"We have seen significant demand from both the investor community and customers to offer a better solution than what is currently available in the market," said Kurt Avarell, Canopy founder and CEO. "Tenaya and Nyca have an impressive track record of helping visionary companies transform industries. That's why we were happy to open up the round to these two strategic partners. This additional funding further validates that our value proposition and solutions are making a real impact for both our customers and the industry as a whole."

The ever-changing laws and complex processes impacting tax and accounting professionals necessitate effective and timely solutions to reduce the intense workload in the industry. Canopy constantly evaluates feedback from customers and closely monitors new changes to industry regulations to develop new features that make tax and accounting work simpler, faster, and more profitable. This additional funding will go directly into executing across the company's pipeline of product updates planned for 2018.

"Canopy has very impressive momentum," said Hans Morris, Managing Partner of Nyca. "Accounting and tax firms rave about the software – which is a rare thing to hear – and the pipeline of product releases and feature enhancements will only increase the excitement. We think Canopy could become the category-defining company."

This additional funding follows recent company highlights including:

Recognized as top 3 highest rated private cloud companies to work for by Battery Ventures and Glassdoor
Wells Fargo Strategic Capital joins as a partner in March 2018
Canopy's Notices solution launched in May 2018, enabling tax and accounting professionals to research, respond, and resolve IRS issues for their clients
Canopy surpasses 5,000 users, servicing more than 1 million taxpayers
"With the complex and often times cumbersome nature of tax and accounting work, modernization is imperative in this industry," said Stewart Gollmer, Managing Director at Tenaya Capital. "Canopy has done a stellar job of pinpointing the challenges faced by tax practitioners and providing the meticulously designed solutions to remedy them. We are thrilled to join Canopy in the effort to bring ease and fluidity to a historically heavy and complicated system."

About Canopy

Canopy is a cloud-based practice management and tax resolution software. The modern, easy-to-use software cuts out tax practice busywork, improves the client experience, and brings all the different tools a practitioner needs under one roof. Canopy is also known for its free 2-minute IRS Transcripts Tool. Canopy was founded by Kurt Avarell, who walked away from his career as a Wall Street tax attorney to launch Canopy from his basement in 2014.

Learn more at www.canopytax.com and @CanopyTax.

About Tenaya

Tenaya Capital is a leading venture capital firm with $1.5 billion under management. The firm invests in high-growth technology companies in the enterprise software and consumer internet sectors. Tenaya Capital is currently investing out of Tenaya Capital VII. The firm has offices in Portola Valley, CA and Wellesley, MA.

Learn more at www.tenayacapital.com

About Nyca

Nyca Partners is a venture capital firm exclusively focused on applying innovation in financial services into the global financial system. Nyca's rich experience and deep connections in both finance and technology gives a unique perspective for entrepreneurs to transform payments, credit models, digital advice, and financial infrastructure.

Learn more at www.nyca.com