San Francisco-based fintech startup InScope, co-founded by Kelsey Gootnick and Mary Antony, has secured $4.3 million in seed funding, led by Lightspeed Venture Partners. The funding round also saw participation from several individual investors, including notable figures such as Vipul Ved Prakash, Jake Heller, Debbie Clifford, Justin Coulombe, and Nadia Asoyan. This investment will support InScope’s mission to revolutionize financial reporting and auditing through advanced technology.
InScope’s Vision for Automated Financial Reporting
InScope was founded in 2023 by Gootnick and Antony, who both have extensive backgrounds in accounting. The duo previously worked together at Flexport, where they experienced firsthand the complexities and challenges associated with financial reporting and auditing. Recognizing a significant gap in the market, they aimed to simplify and automate these processes using machine learning and large language models.
The company’s product, initially launched in beta in early 2024 for Oracle NetSuite users, automates GAAP and non-GAAP reporting, including cash flow statements. “It really looks like a sudoku puzzle that you have to do with trial-and-error to get right,” CEO Antony explained. “Cash flow statements are one of the most important metrics for a company, so they shouldn’t be a sudoku puzzle, or a puzzle in general. We make it possible for our customers to have effortless, but accurate and reliable financial statements every time.”
Growth and Competitive Landscape
InScope currently has five early customers and is on the verge of signing six more. The company is generating revenue and aims to grow both its customer base and revenue by 10x by the end of the year. This ambitious growth plan was a key factor in attracting venture capital investment.
InScope’s primary competitor is Workiva, a company that also provides finance and audit software. However, Workiva primarily targets public companies, while InScope focuses on private companies. Additionally, some legacy professional service firms offer similar services, making them indirect competitors. Nonetheless, Gootnick and Antony view their product as complementary to these services, envisioning potential partnerships where these firms could become customers.
Leveraging Seed Capital for Expansion
With the new seed funding, InScope plans to scale its product, expand its team, and enhance its AI capabilities. The company aims to increase its customer base to 50 companies by the end of the year. Better Tomorrow Ventures, which has been advising InScope since its inception and included the startup in its first accelerator program in 2023, continues to support the company’s growth.
Sheel Mohnot, co-founder of Better Tomorrow Ventures, commented on the team’s dedication: “When we met the team through our accelerator program, we quickly noticed how dedicated and passionate they were to fix a critical component that can be detrimental to a company’s success. After advising the team for a few weeks, we knew that if anyone could tackle this problem, it would be Mary and Kelsey.”
The Future of Financial Reporting Automation
From my point of view, InScope’s innovative approach to automating financial reporting and auditing is poised to significantly impact the industry. The tedious and error-prone nature of traditional financial reporting processes makes automation not just desirable, but essential for modern businesses. By leveraging advanced technologies, InScope offers a solution that promises increased accuracy, efficiency, and reliability.
The successful seed round, led by Lightspeed Venture Partners, underscores the confidence investors have in InScope’s potential. As the company continues to grow and develop its product, it is likely to attract a broader customer base and establish itself as a key player in the financial technology sector.
As I see it, the collaboration between InScope and legacy professional service firms could further enhance the value proposition for clients, providing a seamless integration of automated and human expertise in financial reporting. This synergy could redefine industry standards and set new benchmarks for accuracy and efficiency in financial reporting.
In conclusion, InScope’s journey is just beginning, and with strong financial backing and a clear vision, the company is well-positioned to transform the landscape of financial reporting and auditing, making these processes simpler, faster, and more reliable for businesses worldwide.
