We're thrilled to announce that Puzzle, the first generative accounting platform, announced $30 million in new funding led by S32 and XYZ Capital today. The oversubscribed round included participation from General Catalyst, FOG Ventures, Felicis, Kapor Capital, Sterling Road, Born Ventures, notable seed investors Soma Capital, Alumni Ventures, Gaingels, and an additional 50+ CFOs and operator angel investors as covered on The Information.
The new capital will accelerate Puzzle’s goal to pioneer the future of automated, real-time finance. This brings Puzzle’s total funding to $50M to date.
Why now is the time for change
The funding comes as the accounting industry stands at a crossroads.
- After 25 years of inertia, accounting is at an inflection point with AI tailwinds, with ChatGPT version4 passing the CPA exam.
- Outdated tools and stagnating wages have led to a mass exodus, with more than 300,000 U.S. accountants and auditors having left their jobs in the past two years.
- GAAP is how you evaluate the financial health of a public company, but not how you evaluate a startup’s financial health, which requires ARR, burn, trends, and variance.
Rebuilding accounting from the ground up
Unlike other players that simply bolt on AI to existing software, Puzzle completely rebuilt the general ledger from scratch to be smarter, faster, and fit the needs of modern businesses.
The generative AI platform seamlessly integrates real-time data from essential fintech tools like Puzzle, transforming static accounting data into real-time financial insights. The modern platform seamlessly integrates with modern fintech tools like Stripe, Gusto, Rippling, Mercury, Brex, Ramp, and Pulley to complete the tech stack for high-growth companies - providing finance teams with accurate, up-to-date intelligence to drive decisions.
"Since launching in July, Puzzle has seen rapid double-digit monthly growth, demonstrating a strong demand for a new accounting solution," said Puzzle CEO, Sasha Orloff. "We completely rebuilt the core accounting general ledger to make it more intelligent and faster, and fit today's digital-first business needs. Today's investment solidifies our position to take the lead in bringing accounting into the modern era with our generative AI platform.”
Investor perspectives
"Puzzle stands out as a new kind of accounting solutions firm, employing cutting-edge AI to solve a perennial business problem," said Andy Harrison, CEO of S32. “Puzzle has been able to do what others have not – rebuild core accounting infrastructure from scratch leveraging advanced algorithmic approaches. At S32, we’re focused on investing in industry-leading technology that delivers real results, and we’re confident that Puzzle’s AI-powered software will transform how finance teams add value and drive growth for their organizations.”
"The customer love for Puzzle is undeniable. You don’t usually use the words “accounting’ and “exciting" in the same sentence but we heard it again and again from customer interviews,” said Ross Fubini, Managing Partner of XYZ Capital, who tripled down on their initial investment in the company. “This feels like a transformational shift in accounting software.”
Helping startups build better businesses
"Our goal is for Puzzle to become the essential financial infrastructure for all modern companies,” added Orloff. “We’re empowering founders with insights and accountants with software that finally fits how they work today. Join us in modernizing accounting for the digital age. The time for change is now," added Orloff.
In just one year since launching publicly, Puzzle has:
- Leading accounting firms like Burkland have saved clients on average 25% from month-end close, powered by Ramp & Puzzle, with automated workflows.
- Completely rebuilt core accounting to be smarter, faster, and seamlessly integrated with modern fintech platforms.
- Have achieved 15% new customer growth month-over-month.
- Raised $30M in new funding to fuel rapid growth, with a total of $50M raised to date.
Key benefits include:
- Automatically generated financial statements - Income statements, balance sheets, and cash activity reports are generated automatically from raw data.
- Real-time performance monitoring - Continuous monitoring of cash flow, burn rate, ARR/MRR, revenue accruals, and more to understand financial health.
- Data-driven decision making - Accurate, up-to-date financial intelligence helps leaders make faster, more confident decisions.
- Integrations with essential fintech - Seamlessly integrates transactions from Stripe, Gusto, Rippling, Mercury, Brex, Ramp, Pulley, and many more coming soon.
- On-demand accounting expertise - Get support from Puzzle's network of accounting and tax experts to complement your team here.
The new funding will help accelerate Puzzle's product roadmap, expand integrations, boost our generative AI capabilities, and reach more customers. We couldn't be more excited to lead the industry in bringing accounting into the AI era.
For startups and finance teams looking for an accounting solution to complete the modern finance stack, you’ve landed at the right place.
About Puzzle
Puzzle is designed to help ambitious startups and their finance teams build better companies. To achieve this they built the first accounting infrastructure that automatically generates financial statements, insights, and metrics in real-time from raw data. Their proprietary AI-native general ledger and real-time data platform complete the modern finance stack and help leaders maximize confidence in their most important financial decisions. Puzzle was incubated with General Catalyst’s Creation Fund.
Learn more about Puzzle's real-time accounting platform here.
