Pilot, the biggest US back office service provider for startups and small companies, announced today that it has closed a $60 million Series C round headed by Sequoia Capital, increasing its total funding to $120 million with contributions from Index Ventures and Stripe. The additional pay boost helps Pilot to broaden the scope of its back office services, which eliminate distractions and aid businesses in concentrating on success in a difficult business environment.
According to Pat Grady, partner at Sequoia, “back office tasks like bookkeeping may be difficult, expensive, and time-consuming, especially for small enterprises.” “Pilot provides a painless and even enjoyable back office experience by fusing sophisticated software with a concierge approach. Pilot is making the back office simple, scalable, and on-demand, much like AWS did for computing.”
The investment announcement comes as Pilot gains pace in its quest to give SMBs access to the financial capabilities of large corporations. Pilot has dedicated the past year to assisting SMBs to overcome common obstacles by giving them access to new tools that were previously only available to businesses with extensive finance teams. SMBs get help from Pilot in the following ways:
Maximize financial gains and expansion. SMBs frequently lack access to an experienced CFO and a group of financial analysts who can help them make important financial choices. From customer growth planning to sales efficiency optimization, Pilot CFO Services plugs the gap and develops financial strategies and plans that accelerate growth, increase cash flow, and improve profitability.
Monitor and manage your spending. Large corporations have controllers who study and document expenditure trends, but the majority of SMBs do not have this capability. All of Pilot’s bookkeeping clients receive monthly variance analyses, which enables SMBs to optimize their planning and spending.
Obtain tax rebates for small businesses. An R&D payroll credit of up to $250,000 is one of the special federal and state tax advantages accessible only to small firms, which are sometimes overlooked. Pilot has assisted small businesses in locating and securing new tax credits worth millions of dollars for employment and growth.
For its clients, who vary from established businesses with more than $30M in annual revenue to pre-revenue startups, Pilot has recorded more than $3 billion in bookkeeping transactions as of 2020.
Jessica McKellar, Waseem Daher, and Jeff Arnold, three-time co-founders, founded Pilot to address issues they had encountered when establishing their two prior businesses.
“Our first job out of college was owning a business in Boston. I would have a tonne of manual, laborious accounting work to complete following a long week of sales, customer service, and product development.” Waseem Daher, co-founder and CEO of Pilot, said, “We founded Pilot to be the answer we desired for our business.
“We will be able to make the solution of a better back office a reality for more organizations than before through our relationship with Sequoia”, he added.
One client who has raised more than $75 million in fundraising noted, “The Pilot team has been our partner from our earliest days, from before we had the revenue to post-series. They have aided our development and given us the freedom to focus on our business rather than our books.
To update the back office, Pilot was introduced in 2017. The business supplies small businesses with devoted finance specialists—which Pilot recruits as full-time, American employees—who get to know their industry inside and out. Pilot seamlessly interfaces with the existing billing, banking, expense, and payroll systems used by clients.
Pilot provides accurate, regular bookkeeping that frees entrepreneurs to concentrate on their businesses, as well as a variety of other financial services, using a unique combination of specialized software and knowledgeable bookkeepers.
Waseem Daher, the company’s CEO, Jeff Arnold, the COO, and Jessica McKellar, the CTO, launched Pilot. They have three startups, following two profitable exits. Over 1,000 consumers and $120 million have been raised so far by Pilot.