Funding FloQast Image by TheDigitalWay from PixabayFloQast has announced a new funding round of $100 million led by ICONIQ Growth. The raise also saw FloQast valued at $1.6 billion. The Series E funding round comes nearly three years after its slightly larger Series D funding round ($100 mn). That round was led by Meritech Capital, ICONIQ Growth also participated in that round. Meritech Capital also participated in this latest round and was also joined by long term investor Sapphire Ventures. In 2021, the company was valued at over £1 billion, so growth has been steady.

The round also saw new participants in the form of BDT & MSD Partners and WiL (World Innovation Lab). Both Meritech Ventures and ICONIQ Growth will now have a seat on the board of FloQast.

Mike Whitmire, CEO and Co-Founder FloQast (image credit/LinkedIn/Mike Whitmire)
Mike Whitmire, CEO and Co-Founder FloQast

Mike Whitmire, CPA, CEO and Co-Founder of FloQast, said, “Today’s accounting and finance teams have the opportunity to emerge as drivers of growth and strategic change within their organisations. FloQast can be a catalyst for accelerated financial transformation, starting with the automation of routine, repetitive tasks to empower finance and accounting teams to increase efficiency, enhance accuracy, and minimize compliance risks. This funding round will help that transformation become a reality for even more teams around the world.” 

Enterprise Times asked Mike why they chose ICONIQ Growth for this funding round. He replied, Having ICONIQ Growth, a well-respected VC fund and a first-time investor – leading the round was tremendously helpful.

“They understand the business, know where FloQast has been and see where we are going, and buy into the long-term vision of the company. 

“FloQast joins an impressive set of ICONIQ portfolio companies that align closely with where FloQast currently is and where it intends to grow.” 

What did ICONIQ Growth perceive

As mentioned above, ICONIQ Growth has worked with FloQast over several years. Giving it insights into the company and a better view of its growth trajectory.

FloQast has hit a number of key targets over the last few months. In February, it announced that it had achieved $100 million in Annual Recurring Revenue. The firm now has over 2,600 accounting teams. With brands such as Twilio, Los Angeles Lakers, Shopify, Indeed, Zoom, and Snowflake on its client list.

Jeanna Du, Head of General Ledger at Zoom, commented, “FloQast offers wonderful visibility for us, even with everyone shifting to remote locations. I would recommend using FloQast because it’s made us more efficient, and it’s made managing the Close so much easier. It’s a fantastic tool, I love it.”

The company has also expanded with offices in Los Angeles, London and most recently in Sydney. There it established a regional headquarters in 2023 to continue expansion into Australia and New Zealand. The firm has also expanded its European teams, extending its reach into DACH. In total, the firm now has over 600 employees, most of which are based in the US but it has a team of over 40 based out of its European headquarters in London.

Roy Luo, General Partner of ICONIQ Growth, said, “We are excited to continue our partnership with FloQast as it further cements its status as a leading driver of transformation within the accounting and finance industry. FloQast’s mature organisational infrastructure, operational excellence, and strategic vision for future growth is impressive, as is its remarkable momentum over recent years.

“The company’s recent introduction of innovative solutions and expansion into international markets present significant opportunities, and we look forward to contributing to FloQast’s continued success as it enters its next phase of development.”

How will it spend the money?

The latest funding round is a recognition of FloQast’s leadership in the accounting and finance technology sector. It has maintained the top ranking as the number-one-rated solution on the G2 Grid for Financial Close Management for five consecutive quarters.

Enterprise Times asked Mike how FloQast would invest in the new finance. He replied, “The new funding will fuel FloQast’s continued research and development of new solutions designed to improve existing workflows in the office of the controller. This includes short-term and long-term innovations powered by exciting developments in artificial intelligence. 

“It will also drive continued growth and global expansion efforts and provide better, more localised experiences for customers in EMEA, Australia, and New Zealand. This includes providing more customisation for different countries through language support and billing in localised currency. This funding will also catapult FloQast ahead of competitors by empowering greater customer service.”

On the product side, FloQast has a history of investing heavily in its product. Introducing Advanced Reconciliation Management, Variance Analysis and Compliance Management solutions, bolstering its Accounting Automation Platform and addressing evolving industry needs.

When asked about where FloQast would take its product next, Mike said, Over the past two and a half years, FloQast has continued to receive waves of positive feedback from users and investors. As a result, FloQast is broadening its solution offering and evolving into a holistic accounting operations platform, supporting the broader finance and accounting function. This will include the office of the controller as well as broader functions like compliance.”

Does this mean that FloQast will consider acquisitions?

“FloQast is certainly open to the prospect of acquisition; however this would be more of an opportunistic decision rather than a strategic necessity. When looking at companies, we want to make sure they’re offering great products and have a good co-founder fit at a price that makes sense.”

FloQast will also look to develop its capabilities using AI as it looks to support accounting and finance teams worldwide.

Enterprise Times: What does this mean?

This is a huge milestone for FloQast as it continues its growth under the leadership of Mike Whitmire. It will be interesting to see how the company continues its expansion into new markets, both industry and globally. FloQast already has partnerships with Oracle NetSuite, Microsoft, SAP and Sage. It will be interesting to see whether it considers partnering with Infor now that the company has a marketplace for third-party products.

It will also be interesting to see what the end game for FloQast is. Will it head towards an IPO, or will one of the large vendors look to acquire it? When Enterprise Times spoke to Whitmire in 2019, he was keen to get the right balance between profitability and growth. Conscious that VC money may always dry up. However, the success that FloQast has achieved over the last few years has ensured that funding is still available to fuel further expansion.

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