Israeli-German startup Zeitgold, which has developed an automated bookkeeping platform for small businesses, announced today the completion of a €27 million Series B financing round led by Vintage Investment Partners. This latest investment brings the total amount raised by the company to $50 million. Zeitgold's existing investors include Battery Ventures, Holtzbrinck HV, Saban Ventures, Deutsche Bank, and German insurance company AXA.
The company was founded in 2015 by CTO Kobi Eldar, a graduate of the IDF's 8200 intelligence unit, CEO Stefan Jeschonnek and Dr. Jan Deepen. The company has 120 employees including 20 in Israel and it plans to increase its workforce by 15%-20% in 2020.
Zeitgold's automated bookkeeping platform is based on artificial intelligence (AI) and is designed for small businesses like cafes, restaurants and small stores. The company has not disclosed its revenue but says its user base has grown 300% over the past year.
The company claims that its platform can record 80% of bookkeeping entries at a higher standard than is performed by people. Over the past year, the company has launched its tax consultancy platform, which can scan invoices and receipts and has an application linking up to the company's bank account.
Eldar told "Globes," "In fact the round was closed at the height of the crisis. The process began at the end of 2019 for the most part before the outbreak of the coronavirus but towards the end the virus became a topic that needed to be heeded. Fortunately we had completed all our physical meetings before flights were prohibited. The fact that Vintage and all our other investors invested despite the circumstances proves how much they believe in us and the success of the company."
He added, "From the investors point of view, there is less emphasis on the bottom line of sales and more on the strong competitive positioning of the product and its adaptation to the new market conditions and strengthening the business model."
Eldar continued, "In terms of customers, we see a strong need for streamlining in order to save money in combination with an accelerated transition to digital strategy. Unfortunately, we see many of our customers who are small businesses coping with the loss of major income that leads to liquidity difficulties. We are trying to help them as best we can through the product, advice on receiving financial support and flexible terms of payment in order to get through this period together."
Published by Globes, Israel business news - www.globes-online.com - on May 5, 2020
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