As the U.S. sees a surge in new business applications, the demand for accountants is rising, but the supply is dwindling. Nearly 75% of CPAs are expected to retire in the next decade, and fewer graduates are choosing accounting as a career path due to the lower pay compared to fields like technology and finance.
Enter Fondo, a startup founded by serial entrepreneur David Phillips, which uses software, AI, and accounting experts to offer a comprehensive bookkeeping platform tailored for startups and small- to medium-sized businesses. Fondo has already secured around 1,200 customers, reaching an annual recurring revenue of $6 million and becoming profitable.
The company recently raised a $7 million oversubscribed seed round, led by Japanese fintech company Money Forward, with participation from investors such as Y Combinator, Motley Fool Ventures, and a16z Scout Fund. This funding will allow Fondo to invest in product development and automation, including building an AI agent to help customers extract insights and analysis from their financial data.
Fondo differentiates itself by providing an “all-in-one solution” for startups, combining various accounting functions into a single platform to simplify financial and tax operations. The company has already saved its customers over $75 million in Delaware Franchise Tax and helped them receive over $16 million in tax credits from the IRS.
As the American accountant shortage continues to loom, Fondo’s AI-powered bookkeeping service aims to be a game-changer for startups and small businesses, helping them navigate the complex world of accounting and compliance more efficiently.
