Canopy, which sells a cloud-based practice management system for accountants and tax professionals, said Wednesday it has received $42 million in its latest funding round.

The company plans to use the funding to continue developing the pipeline of product updates it plans to roll out this year. Earlier this month, the company rolled out a Notices feature that helps tax and accounting professionals research, respond to and resolve IRS issues for their clients.

The new funding includes $12 million from Tenaya Capital and Nyca Partners. That's in addition to a previously announced $30 million led by New Enterprise Associates, along with Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund and EPIC Venture. To date, the Lehi, Utah-based company has received a total of $72 million in investment.

“We have seen significant demand from both the investor community and customers to offer a better solution than what is currently available in the market,” said Canopy CEO Kurt Avarell in a statement. “Tenaya and Nyca have an impressive track record of helping visionary companies transform industries. That’s why we were happy to open up the round to these two strategic partners. This additional funding further validates that our value proposition and solutions are making a real impact for both our customers and the industry as a whole.”

The company has more than 5,000 users for its practice management software.

Canopy employees
Canopy's employees have an additional $42 million in funding to fool around with. Courtesy of Canopy

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Michael Cohn

Michael Cohn

Michael Cohn, editor-in-chief of AccountingToday.com, has been covering business and technology for a variety of publications since 1985.