Digits, a real-time finance and accounting platform for small businesses, this week closed a $65 million Series C funding round led by SoftBank with participation from Harry Stebbings’ 20VC Growth, as well as GV and Benchmark. The latest round brings Digits’ total funding to $97.5 million and values the company at $565 million as it launches its first major product.
“It’s rare for one of our portfolio companies to be valuable to the others,” said Eylul Kayin, an investor at SoftBank’s Vision Fund. “(This) is useful to all of them.”
Digits Reports, the company’s first major product, addressed financial reporting for small and medium businesses.
“For the past 20 years, ‘closing the books’ has meant a monthly email from your accountant or finance team, usually with an attached PDF or Excel model,” said co-founder Wayne Chang. “We’ve seen accountants using Digits save 3-4 hours per client every month, and when you are closing dozens of books, that adds up to hundreds of hours saved.”
Digits Reports offers live, interactive financial statements featuring built-in analysis and visualizations. While providing instant access to underlying transaction data and multi-dimensional aggregations to understand drivers and changes. Unlike traditional PDF or Excel reports, these are fully encrypted, and support built-in commenting, collaboration, and secure sharing, including the ability to monitor and revoke unwanted access. AI-generated insights are also part of the package.
“We’ve invested the last three years in building the technological foundations required to understand and model business finance, in real-time, as transactions happen. We call this the ‘Living Model’,” said co-founder Jeff Seibert. “Using advanced algorithms and machine learning, Digits automatically understands each business at the object level–its customers, suppliers, bank accounts, employees, and so on–and the transactions between them. This is what makes products like Digits Reports so powerful, yet so intuitive.”
The company is announcing Digits Report Builder, which allows accountants to quickly create customized report packages for their clients. The technology sits on top of existing accounting software, such as QuickBooks, and takes just a few clicks to activate across an accounting firm’s entire client portfolio, with no data transfer or configuration required.
The company was founded in 2018 by serial entrepreneurs and angel investors Seibert and Chang. Prior to launching it Seibert and Chang were the co-founders of the real-time mobile analytics tool Crashlytics, which was acquired by Twitter for over $100 million in January 2013 and then re-acquired by Google in 2017.