January 2019 SMB Software Venture Deals

Each month, we look at funding activity for startups serving the SMB space. See last month’s post here. To learn more about SurePath’s SMB software focus and our SMB Software Thesis, send us a message at info@surepathcapital.com.

SMB software companies raised ~$940M across 71 deals this past January, a substantial increase in deal size and volume in the first month of 2019 compared to the ~$529M raised in December 2018 across 38 deals. Bankers must have been busy over the holidays…

We have expanded our categorization of VC deals to cover what we show in our annual State of SMB Software reports. Hope you find this useful.

Deal Count, Size & Segmentation

Largest Deals

TaxJar raises $60M of growth capital raise

The January SMB deal included above that we are most excited about was Taxjar’s funding round.

SurePath Capital Partners acted as the exclusive strategic and financial advisor to TaxJar on its $60M growth financing with Insight Venture Partners.

TaxJar is a the developer of a cloud-based sales tax automation platform designed to manage tax easily. The company’s platform offers multi-channel reporting feature that organizes sales tax data into return-ready state reports, enabling organizers to automatically file sales tax returns in any US state.

This latest round of funding will allow TaxJar to continue to aggressively hire and expand its 100% remote team of nearly 60 in addition to accelerating product development, research and go-to-market for their new mid-market offering, TaxJar Plus.

To read more about this transaction, check our deal announcement here.