Finmatics wins top international investor Mangrove for €6 million Series A funding

16 March 2023

Finmatics wins top international investor Mangrove for €6 million Series-A funding

AI software for tax consultants and auditors

Austrian fintech helps businesses and accounting firms overcome skills shortage and high workloads with AI-powered automation
Mangrove Capital Partners leads round, existing investor eQventure follows suit
Finmatics invests funds primarily for further growth with a focus on Germany, expansion of the team at the Vienna and Berlin locations, and in product development

Vienna/Berlin - 15.03.2023. Finmatics, leading provider of software for the digitalization and automation of accounting processes, announces the successful closing of its Series A financing of €6 million. The financing round is led by Mangrove Capital Partners, with eQventure as an existing investor participating again. The funds will be used primarily for further growth in Germany and the expansion of the team at the Vienna and Berlin locations, as well as for product development. In Berlin, Finmatics plans to hire up to 20 employees this year. The company plans to expand into other European countries in 2024.

Finmatics digitalizes and automates accounting processes with the help of AI-based software. The capturing, processing and pre-accounting of all types of documents that arise is still done manually in many accounting departments of tax and business law firms. By using the software, up to 70% of the time in accounting and document processing can be saved and existing resources can thus be used more efficiently. Finmatics' customers - including over 900 law firms and 50,000 companies - include the majority of the so-called "Big Four" such as KPMG. In the past 12 months, Finmatics has increased its total revenue by over 300% yoy, confirming the success of its growth strategy.

Many auditors and accounting service providers have been suffering from an acute shortage of specialists for years and receive more inquiries than they can handle due to additional tasks, such as handling the Corona grants or the new real estate tax in Germany. Quite a few tax firms have to turn down new clients due to a lack of capacity.

Christoph Prieler, Co-Founder and CEO of Finmatics: "Given the enormous challenges facing the tax and accounting industry, automation using artificial intelligence is becoming increasingly important. The great interest in our funding round reinforces this view. We are pleased to bring on board a renowned international partner with an impressive track record."

Nikolas Krawinkel, Partner at Mangrove Capital Partners: "From the beginning, we were excited by the founding team, which draws on deep experience in the accounting and AI field, and believe in Finmatics' vision to fully automate accounting processes in the future. The company strikes a chord in this regard: the global market for accounting software is expected to be $70.2 billion by 2030."

Christian Klemm, Managing Director at eQventure: "We are delighted to now continue, accelerate and broaden internationally our joint successful path at Finmatics with Mangrove Capital Partners."

About Finmatics

Finmatics was founded by Christoph Prieler and Dr. Patrick Sagmeister in Vienna in 2016 and currently has over 100 employees. Jens Quadbeck, former Google manager, has complemented the management team since 2022. The company digitalizes and automates accounting processes with AI-powered software. Finmatics automates formerly tedious repetitive tasks such as manually entering document information or even scanning batches of documents using self-learning AI algorithms. Finmatics is cloud-based, hardware-independent and works as an extension of existing accounting systems, including DATEV, SAP, BMD and RZL. Finmatics is now used by over 900 tax consulting firms and more than 50,000 companies. www.finmatics.com

About Mangrove Capital Partners

Mangrove Capital Partners is a venture capitalist that helps innovative technology companies grow globally. The Luxembourg-based investment firm pursues transformative ideas around the world, focusing in particular on early-stage startups from Europe and Israel. As an investor, Mangrove accompanies founders on their journey through the ups and downs of entrepreneurship. Since 2000, Mangrove has backed five 'Unicorns' as an early-stage investor: Skype, Wix, WalkMe, K Health and The Bank of London. The portfolio also includes other successful digital companies such as Red Points, Flo, Sifflet and Adverity. www.mangrove.vc

About eQventure

Since its founding in 2014, eQventure has been one of Austria's leading venture capital firms. In addition to growth capital, eQventure offers young Austrian high-tech companies a strong global network and operational support to accelerate their growth. Behind eQventure are several successful entrepreneurs who not only invest their capital and know-how, but also bring active support to their portfolio companies. The European Investment Fund supports eQventure's high-tech investments through its European Angels Fund.