Hubdoc, a Toronto-based accounting technology company that automates financial document collection and processing, has just raised its profile and generated additional buzz in Toronto’s fast-expanding startup scene. The company just announced that it has secured almost $5 million in seed funding. BDC IT Venture Fund and Round13 Capital led the round, with participation from Hyde Park Venture Partners.
Hubdoc was founded in 2011 by Jamie Shulman and Jamie McDonald, two MBAs who had previously co-founded an online marketing company, Sparkroom. With their new venture, the co-CEOs developed a cloud-based, automated accounting application that collects and analyzes business documents for financial reporting, reconciliation and audit proofing, helping accountants and bookkeepers save time, scale their practices and build deeper relationships with businesses.
Hubdoc has seen steady growth in North America, and it recently expanded into Australia. According the company’s senior product marketing manager, Geoff Gualano, the company works with about 2,000 accounting and bookkeeping firms that represent tens of thousands of small- to mid-sized businesses through the Hubdoc platform, all of whom are using it to accelerate management of day-to-day accounting procedures and tasks.
“We’re in the early innings of the global shift to cloud accounting,” said Hubdoc cofounder and co-CEO Jamie Shulman. “Accounting firms and businesses all over the world are transitioning into the cloud, away from offline and paper-based processes and applications. Customers are relying on Hubdoc to facilitate that shift.”
“Hubdoc is a core application in the cloud accounting technology stack, and it is driving huge efficiency gains for accounting firms and small businesses around the world,” commented Bruce Croxon of Round 13 Capital. “We are excited to invest in real-world, practical applications of machine learning and artificial intelligence. We are fully behind the outstanding team at Hubdoc and the problems they are solving.”
The new funds will be used to scale growth in North America, Australia and the United Kingdom and to accelerate innovation in accounting automation. The company plans to invest in new hires in product development, machine learning, and sales and marketing.
Hubdoc’s recent funding round is another indication of growth in Toronto’s booming startup scene, especially in fintech-related companies. “Toronto is one of the world’s most important financial centres, so it’s no surprise that it’s becoming a hotbed for fintech startups,” said Hubdoc’s senior product marketing manager Gualano. “Companies like FreshBooks and Wave accounting are doing some impressive things. We feel privileged to be a part of this community.“