True Global Ventures has led a $9 million equity investment round in Cynch AI, a San Francisco-based company building AI native tax automation software and pursuing acquisition-led growth in the tax and accounting market. The round also included participation from existing investors Permanent Capital, AI Capital, Clear Ventures, and Factory HQ, according to the firms.
Cynch AI is positioning its platform as a way to modernize tax preparation and reporting, as a large share of Certified Public Accountants approach retirement, a shift the company says is leaving many small and mid-sized businesses with fewer options for ongoing support. Cynch AI says it addresses this gap by automating time-consuming and error-prone parts of tax reporting using deterministic AI that is designed to be auditable and reliable, while still maintaining continuity for clients moving over from traditional practices.
The company’s growth strategy centers on partnering with retiring CPAs and acquiring their tax and accounting clients, then using its proprietary AI tax model to deliver services at scale. Cynch AI said it has already acquired clients from seven practices and plans to accelerate that pipeline with the new funding, expanding onboarding capacity and deploying its platform across acquired client bases more quickly.
True Global Ventures framed the investment as a bet on an AI-first operating model that can preserve the service relationships practices provide while automating repetitive work and improving accuracy. Cynch AI, for its part, said it differentiates through a neuro-symbolic approach combining multiple AI techniques with quantitative reasoning to produce explainable insights and repeatable outcomes for small business owners.
KEY QUOTES:
“Cynch AI focuses on a neuro-symbolic AI approach leveraging the best of large language models, machine learning, and quantitative reasoning to deliver reliable, auditable, and impactful financial advice; we aim to provide deeper, more explainable insights. We see ourselves differentiating from peers through our focus on small business owners, by scaling quickly through acquisitions, and by providing our clients the financial clarity and confidence they need to succeed.” Explains Nigel Duffy, CEO of Cynch AI.
Nigel Duffy, CEO of Cynch AI
“Cynch AI is solving a generational problem in the tax and accounting industry. A huge proportion of CPAs are approaching retirement, and SMEs are increasingly left without qualified partners to support them. Cynch’s AI-first model preserves the services these practices provide while modernizing them — automating the most menial and error-prone parts of tax reporting without hallucination.” Beatrice Lion, General Partner and CEO of True Global Ventures comments. “We believe Cynch AI is building the future operating system for tax and accounting, and we are proud to support their next phase of accelerated growth.”
Beatrice Lion, General Partner And CEO of True Global Ventures
