Numeric Secures $28M Series A to Revolutionize Accounting with AI Automation

Numeric, an AI-driven accounting software startup, has raised $28 million in a Series A funding round led by Menlo Ventures, with participation from new investors IVP and Socii. This follows the company’s $10 million seed round just five months ago, reflecting the growing interest in its innovative solution. Founded in 2020 by Parker Gilbert, Numeric was born out of his frustration with the manual, time-consuming nature of month-end and quarter-end financial closings. The platform automates parts of the book-closing process, helping accounting teams save significant time.

Numeric’s use of generative AI has enhanced its capabilities, allowing it to serve high-profile clients such as Brex, OpenAI, Plaid, and Wealthfront. Over the past year, the company’s revenue has quadrupled, reaching single-digit millions. The software aggregates data from various accounting systems and spreadsheets, using AI to detect changes in financial line items and explain anomalies—a process known as flux analysis. For example, if legal expenses surge from one month to the next, the AI might explain, “Your legal expenses increased due to additional payments to Wilson Sonsini.”

Concerns about AI inaccuracies, or hallucinations, are mitigated by Numeric’s transparency, as the platform provides links for accountants to verify the AI’s findings. While generative AI currently assists in variance explanations, Gilbert expects future iterations of the software to handle full-scale calculations as well.

Menlo Ventures partner Croom Beatty highlighted Numeric’s competitive edge, noting its ability to manage complex workflows and data in a market underserved by tech. Competing with firms like BlackLine and FloQast, Numeric stands out due to the sophistication and difficulty of replicating its AI-powered approach. Future plans may include expanding into financial planning and analysis, a space dominated by Anaplan.