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This morning FloQast, an LA-area startup, announced that it closed a $40 million Series C led by Norwest Venture Partners. The company also told TechCrunch in an interview that it raised a $20 million inside round between today’s investment and its 2017 Series B. Including today’s infusion, the firm has raised a little over $90 million.
The small inside round, however, wasn’t executed because the firm was low on options at the time. Instead, FloQast chose it over larger term sheets, using the cash to help launch a new product. It then raised the round we’re discussing today at a higher valuation. What did FloQast launch, and what impact did that choice have on its business? Let’s talk about what FloQast sells to help us answer both questions.
FloQast - Management - Software - Accounting - TechCrunch
FloQast sells what it calls “close management software,” which might not mean much if you aren’t read-up on accounting. So, TechCrunch got FloQast CEO Mike Whitmire on the phone to explain it in more detail. According to the technology executive, his company helps “teams collaborate around the month end close, we help them communicate [and] stay on the same page with this process that occurs at the end of every month. And then we provide some light automation around [the] tie-out and reconciliation process, which is one of the steps of actually closing the books.”
Why does all that matter? Because a company can’t report its financial results until its books (accounts) are closed (finalized). So, Whitmire explained, you can’t get to a 10-Q or other bedrock financial report without this sort of work. And given that every company in the world has books that need closing you can see where FloQast fits into the business landscape.
FloQast - Business - Whitmire - Company - People
FloQast doesn’t target every business, however. According to Whitmire, when a company reaches “five people in the corporate accounting...
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