AI-Driven Tax Incentive Startup Incentify Secures $9.5 Million in Series A Funding
Incentify, a Los Angeles-based startup leveraging artificial intelligence to help companies maximize tax credits and incentives, has successfully raised $9.5 million in a Series A funding round. The investment was led by Innovent Capital Group, with participation from consulting firm Ryan LLC and Gary Gilbert, co-founder of RocketMortgage and co-owner of the Cleveland Cavaliers.
Founded in 2019, Incentify aims to address a significant gap in the business world, estimating that companies are currently missing out on up to $1.2 trillion in available incentives. The startup’s AI-driven software manages tax credits and incentives (C&I), identifying applicable benefits based on company-specific data and streamlining the application processes for C&I portfolios.
This latest funding round builds upon Incentify’s previous $4.25 million raised in 2020, bringing their total funding to $13.75 million. The capital injection will support the company’s ongoing technological innovations and market expansion efforts.
Incentify’s recent developments include the introduction of the Explore tool, which personalizes tax incentives for companies, and the creation of a comprehensive data warehouse containing federal, state, and local incentives. The company’s AI model, trained on this extensive dataset, provides valuable insights and content to customers.
The startup generates revenue through a traditional SaaS model and fees from connecting customers with advisor partners. However, Incentify faced challenges in fitting into some venture capitalists’ investment theses, particularly larger firms, during their fundraising process.
Industry experts anticipate increased specialization in AI startups by 2025, including within the tax and accounting sectors. Incentify faces competition from companies like MainStreet, which has raised over $100 million and focuses on tax credits for startups and small businesses.
As part of their successful funding round, Incentify utilized a 20-slide pitch deck to secure the $9.5 million investment, highlighting their innovative approach to tax incentive management and market potential.
With this new funding, Incentify is well-positioned to continue its growth and further develop its AI-driven solutions for businesses seeking to optimize their tax credit and incentive strategies.
