Canopy Raises $70 Million Series C to Accelerate AI-Powered Accounting Transformation
Canopy (Draper, UT) raises $70 million Series C to expand its AI-driven accounting platform, aiming to boost firm efficiency and profitability.
Money
Draper, Utah - April 23, 2025
Canopy, a cloud-based Practice Management solution for accounting firms, has closed a $70 million Series C round. The Series C investment was led by Viking Global Investors, a global firm headquartered in Stamford, CT and founded in 1999 that manages over $51 billion in assets. Existing investors Ten Coves Capital, Ankona Capital, Pelion Venture Partners, and Tenaya Capital also participated.
Following a $35 million raise in May 2024, this latest round puts the total capital raised by Canopy at roughly $285 million. It underscores Canopy’s rapid momentum as it intensifies its investment in artificial intelligence. The funding will accelerate product development aimed at helping medium and large accounting firms become more efficient, profitable, and scalable. Canopy also plans to explore growth through strategic acquisitions.
CEO Davis Bell emphasized the importance of strategic alignment with investors, noting that “everyone’s money is as green as anyone else’s, but the differentiation comes in how they behave—especially when things aren’t going great.” Bell said Viking stood out during a years-long courtship process because they “don’t just invest in small vertical software companies that are going to have little exits that don’t leave much of an impact. They want large companies that can become generationally big, great companies.”
He also confirmed that M&A is on the roadmap, stating, “We aren’t going to do M&A for the sake of M&A, but there are interesting opportunities out there. We wanted at least the ability to go and do any M&A that may make sense for us down the road.”
According to Bell, Canopy’s mission is to allow accountants to return to the essence of their profession. “Our mission is to help accountants focus on what drew them to the profession in the first place: being accountants. They want to apply their expertise to delivering real value to clients—not chasing documents, renaming PDFs, and sending invoices.”
“We’re now at the advent of this age where, through AI, those tasks no longer really need to be done by a human,” Bell said. “There’s just no reason on earth that a very highly trained person should be the one sending an invoice and reminding the person if they haven’t sent the invoice back or paid the wrong amount.”
Canopy offers a fully integrated practice management platform that enables accounting firms to manage everything from proposal to payment. Its solutions cover client engagement, document management, workflow, time and billing, engagements and proposals, and more. Trusted by nearly 4,500 accounting firms, Canopy is SOC 2-certified and data-encrypted.
Bell sees the platform as central to the profession’s AI transformation: “Right now today, Canopy is a platform where accountants and their folks who work at their firms come and do their work. But increasingly, we just want Canopy to do more and more of that work so those accountants can go and actually be accountants.”
The goal is to reclaim time spent on high-value work. “If we can take the percentage of an accountant’s day that’s actually spent doing accounting and increase it, that’s a win for us,” Bell said. “It contributes to job satisfaction, reduces burnout, and creates room for the real creativity and insight that accountants bring to their clients.”
Bell also highlighted the broader economic implications: “If they’re spending 60% of their time on menial tasks and we can free them up to do it, that’s 60% more time they can spend with customers. Suddenly they can help a new set of customers and bring them services they previously weren’t able to extend.”
Feedback from Canopy’s nearly 4,500 clients is instrumental in shaping the roadmap. “We have a standard operating procedure for that,” Bell said. “Our product team does on-site visits, tons of customer interviews, and we get a lot of feedback from sales and customer success. Even I meet with customers regularly. The hard part is just figuring out what to build first.”
Canopy’s word-of-mouth growth reflects the tightly connected nature of the accounting industry. “We wouldn’t be growing as quickly as we are without a lot of that as a tailwind,” explained Bell. “In a vertical market like accounting, there’s a given set of trade shows, publications, and influencers. People talk.”
The company, headquartered in Draper, Utah, employs around 210 people, the vast majority of whom are based in the state. Bell shared with TechBuzz, “We’re feeling the benefit of the maturing of the tech sector here. We can now hire folks in fairly specialized roles who’ve done that thing at another Utah company—which wasn’t the case ten years ago. We’re experiencing the tailwinds that come from being in a highly networked, mutually supportive place.”
As Canopy moves forward, the company is positioning itself not only as a core player in Utah’s thriving tech ecosystem, but as the backbone of a new era in accounting—one where technology allows professionals to spend less time on tedious busywork and more time creating meaningful value for clients.
Learn more at www.getcanopy.com.
