Connected Accounting Company Lockstep Raises $10 Million

By Amit Chowdhry ● Feb 15, 2021
  • Lockstep — a connected accounting cloud company — announced it has raised $10 million in Series A funding led by Point72 Ventures. These are the details.

Lockstep — a connected accounting cloud company — announced it has raised $10 million in Series A funding led by Point72 Ventures with participation from Clocktower Ventures and Revel Partners. The new round of funding will be deployed to expand product development and accelerate go-to-market initiatives.

Accounting teams are known for being the human glue between the books of buyers and sellers by manually transcribing paper, emails, and PDFs back and forth to their accounting systems to keep cash flowing. And the pandemic reminds every company about the importance of cash and forces CFOs to look for automation that gives visibility, predictability, and control of cash flow.

Launched in 2019, Lockstep helps over 180 customers process over 800 thousand invoices per month with almost 4 million entities. Plus Lockstep integrates over 40 ERP and accounting solutions into its connected accounting cloud.

Lockstep’s seed round had closed in May of 2019 and was led by SeaChange with participation from the CEO and co-founder of Avalara, Scott McFarlane, Avalara co-founder Jared Vogt, Amazon Consumer CEO Jeff Wilke, managing director and co-founder of Pioneer Square Labs Geoff Entress, and former Microsoft leaders Ben Slivka, Lisa Slivka, and Charles Fitzgerald.

KEY QUOTES:

“We founded Lockstep on the belief that accounting deserves better tools to keep their books in sync with trading partners for reliable and predictable cash flow. Lockstep eliminates cash traps for receivables and cash leaks for payables by replacing the manual friction between the books of buyers and sellers.”

— Peter Horadan, Co-founder and CEO of Lockstep

“Lockstep surveys show that over 90% of the email addresses accounting departments use for transactions with trading partners have no automation to manage and retain data. We believe Lockstep can modernize accounting by automating communications and providing online accounts for trading partners, helping companies seamlessly integrate information and eliminate bottlenecks.”

— Pete Casella, Partner at Point72 Ventures

“Many digital transformation efforts fail because they force trading partners to change their processes. By leveraging the ubiquity of email, Lockstep gives CFOs digital on-ramps that allow their teams to modernize and benefit quickly without relying on trading partners to change behavior.”

— David Moon, founder of CFO Roundtable