Cloud Accounting Startup Lockstep Announces $10 Million Round
In a sea of digital banking services and budgeting apps, it’s easy to forget how large the scope of FinTech actually is. Additionally, while many startups are focused on P2P, there are plenty of financial needs in the B2B space as well. Enter Lockstep — a cloud accounting startup aiming to help businesses manage their cash flow and invoices. Now, the company has announced a new round of funding that will assist them in achieving that goal.
Last week, Lockstep announced that it had raised $10 million in its latest funding round. The Series A was led by Point72 Ventures, while Clocktower Ventures and Revel Partners also participated. Previously, the company’s seed round led by SeaChange (with participation from Scott McFarlane, Jared Vogt, Jeff Wilke, Geoff Entress, Ben Slivka, Lisa Slivka, and Charles Fitzgerald) was closed in 2019.
Lockstep offers digital cloud accounting features, including smart automation, digital onboarding, and more. With these tools, the startup says that customers can improve cash flow by 30% or more. Currently, Lockstep processes more than 800,000 invoices per month. According to their site, they offer a free Lockstep Inbox plan with up to two inboxes, up to 10 users, and several features — although prices for additional plans aren’t disclosed.
Speaking to the strengths of the platform Lockstep co-founder and CEO Peter Horadan said, “We founded Lockstep on the belief that accounting deserves better tools to keep their books in sync with trading partners for reliable and predictable cash flow. Lockstep eliminates cash traps for receivables and cash leaks for payables by replacing the manual friction between the books of buyers and sellers.”
As for what investors saw in the FinTech, Point72 Ventures partner Pete Casella said of the startup, “Lockstep surveys show that over 90% of the email addresses accounting departments use for transactions with trading partners have no automation to manage and retain data. We believe Lockstep can modernize accounting by automating communications and providing online accounts for trading partners, helping companies seamlessly integrate information and eliminate bottlenecks.”
Even as so-called “megarounds” tend to dominate the news, this Series A from Lockstep is the latest in a string of early-round FinTech raises that have been announced in 2021. Last month, small business banking service Oxygen announced a $17 million Series A led by Runa Capital. Additionally, late last year, Vennfi and their unique Charityvest platform raised $2.3 million in seed funding, with former DCM Ventures partner Tom Blaisdell leading the round.
On that note, even though large, late-stage FinTech funding rounds are impressive, it’s always encouraging to see that younger startups are finding investors as well. In the case of Lockstep, the additional $10 million will hopefully help them scale their product and assist other startups with their B2B accounting needs. Meanwhile, with the 2021 still relatively new, the year is already shaping up to be a strong one for FinTechs.