InScope nabs $14.5M to solve the pain of financial reporting

Navigating the intricate world of financial reporting can be daunting, even for those without formal accounting training. The process of preparing financial statements is notoriously complicated and labor-intensive. While established platforms like Workiva and Donnelley Financial Solutions strive to simplify this task, two seasoned accountants, Mary Antony and Kelsey Gootnick, found themselves grappling with persistent manual inefficiencies in these systems. Antony and Gootnick first crossed paths seven years ago at Flexport, where Gootnick held the position of controller, and Antony was the assistant controller. Despite moving on to different roles—Antony at Miro and Gootnick at Hopin and later Thrive Global—the duo maintained their connection, continuously encountering the same tedious manual processes. "The way financial statements are compiled often involves a patchwork of spreadsheets and Word documents, constantly shuffled through emails among team members," Antony explained in an interview with TechCrunch. This frustration led them to co-found InScope in 2023, an innovative platform powered by artificial intelligence that aims to automate crucial aspects of financial statement preparation for businesses and accounting firms. Recently, InScope successfully raised $14.5 million in Series A funding, led by Norwest, with contributions from Storm Ventures and existing investors like Better Tomorrow Ventures and Lightspeed Venture Partners. Although the platform does not yet fully automate the creation of income statements and balance sheets, it significantly reduces the manual workload involved in the process, ranging from math verification to formatting. According to Antony, the CEO of InScope, ensuring consistent placement of dollar signs and commas can potentially save accountants up to 20% of their time. In the past year, the company has seen an impressive fivefold increase in its customer base, attracting renowned accounting firms, including CohnReznick, which ranks among the top 15 firms in the nation. However, as Antony notes, the accounting profession is often characterized by a cautious approach, making it unlikely that professionals will readily embrace complete automation of financial statement preparation. Nevertheless, achieving this level of automation remains InScope's long-term vision. Sean Jacobsohn, a partner at Norwest, shared his reasons for investing in InScope, stating that he received feedback from various clients who praised the time-saving benefits of the startup's product. He emphasized the uniqueness of InScope's founders, who possess rare expertise in financial reporting technology. "It's a complex space, and it’s crucial to understand the buyer's perspective," Jacobsohn remarked. Antony concurs, acknowledging that accountants are not typically inclined to launch startups, but her and Gootnick’s experiences in dynamic, high-growth environments have equipped them with the entrepreneurial skills necessary for this venture.