AI Tax Preparer Secures $17M To Make Tax Season Less Painful
Summary
Filed, an AI tax preparer, secured $17 million in pre-seed and seed funding rounds backed by Northzone and Day One Ventures. It reads documents, uses reasoning to apply each firms specific approach to tax strategy, and then enters that data into their existing software systems, Kerry told TechCrunch. Kerry adds that when AI identifies a situation that requires human work, it flags it for review.Though similar startups use AI for tax preparation and accounting, Kerry says his product differs from others because the AI was explicitly created for tax workflow.The fund will be used to expand its team of 20; It plans to add more engineers in Stockholm and build a sales and marketing team in the US.Focusing on the US marketThe startup decided to focus on the US market, as there is greater demand for its product there. Kerry highlighted that around 60% of US taxpayers seek professional help for tax filing, possibly due to severe penalties for mistakes. There is a real fear amongst US taxpayers not to mess about with their taxes, Kerry told Sifted.Though the company will focus on the US market, it is based in Stockholm.