Companies of all sizes need bookkeeping and accounting services. And it’s an ideal service to consume digitally. When I started reporting on the space in the mid-90s, I thought banks would end up delivering the bulk of basic accounting functions through their online banking programs.
But so far I’ve been proven wrong. There is too much nuance, too many gray areas, too much liability and too much competition for traditional banks to make a material profit. So the market has been ceded to the entrepreneurs, and wow, have they shown up!
It’s been a popular startup category with 16 of the top 21 companies founded since 2012.
Years since founding:
10 to 20 years >>> 4 startups
5 to 9 years >>> 9 startups
1 to 4 years >>> 8 startups
NEW: Looking for digital banks, lenders, payment providers, insurance or digital accounting for small businesses? Check out our latest lists: SMB online lenders (33) | SMB challenger banks (12) | SMB insurers (15) | SMB charge cards/expense management (16) | Billpay & invoicing (16)| Payment processors (7) | Subscription processors (7) | SMB digital accounting/bookkeeping (21)
The FAB Score Ranking (Fintech Attention Barometer) is a proxy for the size of a private fintech company.
|Rank||Company||FAB Score||Review||Founded||HQ||Funding ($Mil)||Web Visits
|1||Xero||5,048||25 Jan 2022||2006||Wellington, NZ||681||24,800,000|
|2||Freshbooks||844||25 Jan 2022||2003||Toronto||206||3,900,000|
|3||HighRadius||240||25 Jan 2022||2006||Houston||475||370,000|
|4||Patriot||170||25 Jan 2022||2002||Canton, OH||4.4||910,000|
|5||TaxBit||163||25 Jan 2022||2018||Draper, Utah||236||400,000|
|6||Bench||147||25 Jan 2022||2012||Vancouver BC||107||570,000|
|7||Pilot||77||25 Jan 2022||2016||SF||161||85,000|
|8||OneUp||50||25 Jan 2022||2017||SF||2||240,000|
|9||Autobooks||46||25 Jan 2022||2015||Detroit||47.8||150,000|
|10||Paperclip||30||25 Jan 2022||2021||SF||8.8||100,000|
|11||Zeni||30||25 Jan 2022||2019||SF||47.5||16,800|
|12||Proper||12||25 Jan 2022||2017||SF||13.8||23,000|
|13||Bookkeep||7||25 Jan 2022||2018||NYC||3.3||12,300|
|14||Pallo||6||26 Jan 2022||2020||0||3,200|
|15||Xendoo||4||25 Jan 2022||2016||Miami||4.7||10,000|
|16||Avise||3||25 Jan 2022||2017||NYC||5.5||1,400|
|17||Snyder||3||25 Jan 2022||2016||SF||3||0|
|18||Docyt||2||25 Jan 2022||2016||SF||3.7||0|
|19||FinancePal||2||25 Jan 2022||2015||Chicago||0||8,700|
|20||Reconciled||1||25 Jan 2022||2015||Burlington, VT||1||4,200|
|21||Ceterus||-2||25 Jan 2022||2008||Charleston, SC||29.3||5,200|
Source: FintechLabs, 25 Jan 2022 using data from Crunchbase, SimilarWeb, SEMrush
*As nerds do, we are developing a proprietary score measuring the adoption of digital financial services at private companies that do not release traditional metrics (# customers, deposits, AUM, etc). We call it the FAB score, standing for Fintech Attention Barometer. The score uses money raised, valuation and website traffic as a proxy for company size and velocity of growth. It’s a work in progress, so expect changes down the road.
**Funding is the amount invested into the company as either equity or debt.