A Sydney startup that creates accounting software has secured $5 million in a series A capital raising round.
Practice Ignition announced Tuesday that Microequities Venture Capital Fund led the investment, while other new contributors included Black Sheep Capital and Right Click Capital.
Craig Winkler, last week named the 12th wealthiest man in Australian tech, is an existing investor in Practice Ignition and chipped in an undisclosed amount for the latest round. Winkler is best known for establishing accounting software firm MYOB then, in 2009, investing $14.7 million in its rival Xero.
Xero’s shares are now worth more than 20 times the 2009, as the New Zealand company celebrated passing the one million user mark this year.
Founder of ASX-listed software and service giant TechnologyOneAdrian Di Marco was also another early backer and contributed to the latest round. He will join the board, along with Microequities Venture Fund founder Howard Leibman.
Leibman said his firm was “truly excited” to be leading the latest $5 million round, which came after a seed round of $2.2 million secured over 2014 and 2015.
“The product addresses a truly global market opportunity and, with a customer base already spanning some 20 countries, the team has clearly demonstrated its ability to scale activities well beyond Australia,” he said.
Practice Ignition sells cloud software that automates operations for accounting firms, and globally boasts a client base of 1,000 practices that process $100 million of payments each year for 40,000 businesses. The software integrates with client-facing systems such as Xero and Quickbooks.
“Our international strategy has paid off, with over 50% of our revenue generated overseas. This new capital will enable us to ramp up product and marketing in key markets, expand our team and better serve our amazing customers,” said Practice Ignition founder and chief Guy Pearson.
The fintech, which started in 2011, said it would double the head count from 30 to 60 over the next couple of years as it pushes further into USA, Canada and the UK.
Right Click Capital founder Benjamin Chong said his firm’s investment could open further doors.
“The funding also gives Practice Ignition the opportunity to tap into Right Click Capital’s partnership with the Draper Venture Network. This opens doors for both investors in the growth fund and the businesses the fund supports,” he said.