Accounting software startup Lockstep raises $10 million to help businesses better manage cash flow

Lockstep CEO, Peter Horadan. (Lock picture)

Lockstep, a Seattle startup using software and the cloud to improve accounting practices, raised $10 million in a Series A funding round, the company announced Wednesday.

Founded in 2019, Lockstep’s “Connected Accounting” leverages tools such as accounting-specific email and inbox automation for Accounts Receivable and Accounts Payable teams, helping to eliminate cash traps and cash leaks that occur when humanely managing the books of the business.

“We founded Lockstep on the belief that accounting deserves better tools to keep their books in sync with customers and vendors for reliable and predictable cash flow,” said Lockstep co-founder and CEO Peter Horadan. , in a press release.

Lockstep’s email automation sends reminders of an invoice coming due or payment information when an invoice is paid, which is a huge time saver and maintains cash flow. The company also provides online account management and access for suppliers and customers to view current statement, manage their accounts and make payments online.

Rather than using siled personal inboxes and spreadsheets, a shared accounting inbox allows the team to work in one place with research, assignments, tracking and reporting to ensure that nothing slips through the cracks, increasing productivity.

“Companies in all sectors have planned their digital transformation. However, over the past year, what was once a five to ten year plan has become a ‘current’ plan as everything has gone remotely,” Horadan told GeekWire. “Bottlenecks that were previously tolerated, such as paper invoices, paper checks and personal inboxes, were suddenly unacceptable, creating cash traps for businesses when they needed cash more than ever. .”

Horadan, who previously served as executive vice president of engineering and chief technical officer at tax automation startup Avalara, said that during the COVID-19 pandemic, Lockstep’s ability to enable remote accounting teams, create automated communications and facilitating online payments has been an important driver for the company. Annual recurring revenue increased by more than 100% in 2020.

Calling “broken accounting” a problem for every business, Horadan said Lockstep has customers in a wide range of industries, including manufacturing, distributors, business services, information services and technology companies. It has 180 customers in 29 industries in seven countries.

The new funding will be used to expand product development and accelerate go-to-market initiatives. The round was led by Point72 Ventures with participation from Clocktower Ventures and Revel Partners.

Lockstep previously closed a funding round in May 2019, led by SeaChange with participation from Avalara CEO Scott McFarlane, Avalara Co-Founder Jared Vogt, Amazon Worldwide Consumer CEO Jeff Wilke, Managing Director of Pioneer Square Labs Geoff Entress and angel investors Ben Slivka, Lisa Slivka and Charles Fitzgerald.

Lockstep currently employs 33 people remotely in the United States and India.

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