Securing large seed investments can be challenging for early-stage startups, however automated financial reporting company InScope has proved there is appetite among investors for tackling inefficient processes. InScope announced this week it has raised a $4.3 million seed round led by Silicon Valley venture capital firm Lightspeed Venture Partners.
Founded in 2023 by former finance leaders Mary Antony and Kelsey Gootnick, InScope aims to streamline the often tedious and error-prone process of financial statement preparation using machine learning and natural language technologies. The company’s financial reporting software automates the creation of key statements like income statements and cash flow reports for mid-market businesses according to GAAP standards.
By reducing the time spent on manual drafting and recalculations, InScope hopes to give finance teams more time for strategic tasks. The software handles common accounting rules to ensure consistency and accuracy in statements. This helps avoid embarrassing errors that can damage a company’s reputation, as was seen in a high-profile case earlier this year.
So far the startup has five customers live on its platform with six more in the contract stage. InScope plans to rapidly expand its customer base to 50 companies by the end of the year. The new funding will help accelerate software development efforts and allow the team to continue improving the AI capabilities underpinning the product.
Investors clearly see potential in InScope’s vision to update mainstream financial processes with contemporary tech solutions. Lightspeed Venture Partners has a track record of backing automation pioneers and will support InScope’s Series A plans. Other participants in the round included several finance leaders offering strategic guidance as paying customers.
Looking ahead, InScope will focus on refining its automated financial report generation based on user feedback. With accounting still relying heavily on manual tasks, there remains a large opportunity for startups bringing more efficiency to the sector with innovative applications of artificial intelligence.