South Jordan, Utah-based Canopy Raises $35 Million in New Funding Round

A leading provider of online software services for managing accounting firms, Canopy has now raised $153 million in equity funding

Since its founding back in 2014, South Jordan, Utah-based Canopy has been on a mission to transform the operational side of business for small-to-medium-sized accounting / tax advisory firms.

How? By moving virtually every aspect of running such a business to the Web as Software-as-a-Service applications (where possible).

And by all indications, the undertaking is working, as shown by

• A 4.6 out of 5 average customer rating on G2,
• A 4.5 out of 5 average customer rating on Captera, and
• A 4.5 out of 5 Average customer rating on GetApp.

The Canopy website has also highlighted a number of positive Case Studies published on its website from happy customers.

With this as context, I wasn't surprised to learn that Canopy has just landed an additional $35 million in a new round of equity funding.

According to the Canopy news release, the oversubscribed financing "... was led by Ten Coves Capital and Ankona Capital, with participation from Pelion Venture Partners, Tenaya Capital, and NewView Capital."

Based upon info shared on the company website, and presuming that my calculations are correct, this brings total outside funding for Canopy to $153 million since its launch roughly 10 years ago.

In addition to the five firms noted above, other investors in Canopy have included

• EPIC Ventures (of Salt Lake City, Utah),
• New Enterprise Associates (NEA),
• Nyca Partners,
• University Growth Fund (also of Salt Lake City), and
• Wells Fargo Strategic Capital.

[NOTE: Utah-based Pelion Venture Partners is now based in Draper City.]

Among the host of services Canopy offers its client firms are everything from

• Customer Relationship Management (CRM) to Document Management, and from
• Tax Resolution tools to Workflow Management.

According to its most recently released data, Canopy reports that its solutions are now used by over 3,000 accounting firms.

According to the latest INSIDE Public Accounting report on the 500 largest CPA Firms in the United States, the No. 500 firm on its list was Barbacane Thornton & Company of Wilmington, Delaware, which produced just over $4.5 million in revenue in 2023.

By context, although numerous sources suggest that there are over 45,000 public accounting firms currently operating in the U.S., IBISWorld's latest data says there are over 1.4 million accounting firms around the globe today.

In other words, the upside opportunities for Canopy seem very bright.

So, kudos to Team Canopy on this recent financing.

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