An early-stage (pre-seed and seed) investor would welcome temporary tricks as fake automation because they would allow the company to develop the tech solution after the demand for it has been validated and while testing it on real customers. In the case of ScaleFactor, some investors were turned away after revealing the “customer service staff” behind the curtains, but obviously, a lot of others (17 to be exact) weren’t. Multiple clients confirmed that they were receiving books full of errors that they had to correct themselves. According to some ex-employees, the reason for this was that the software was very glitchy and mistake-prone, which made the work of the accountants harder.


However, it seems the only disruption they ultimately caused is to their clients’ and employees’ financial lives – smack dab in the middle of a global pandemic and recession. Most of these features were supposed to be powered by a combination of artificial intelligence (AI) tools and accounting experts. After their initial failure to automate the bookkeeping process, they tried to pivot to a marketplace for bookkeeping companies and SMEs. After all, ScaleFactor raised money like a tech startup, so they needed to develop a scalable tech product rather than to refine and grow their service business.

What Happens if the Scale Factor is Less Than 1?

Despite the votes of confidence from well-known investors, customers were finding that ScaleFactor was falling short. Patrick Coddou, whose e-commerce business paid ScaleFactor more than $10,000, requested to cancel in April 2019 after his statements, expected to be delivered on a real-time basis, were delivered monthly because they were being processed manually. When the early universe was about 47,000 years old (redshift 3600), mass–energy density surpassed the radiation energy, although the universe remained optically thick to radiation until the universe was about 378,000 years old (redshift 1100). This second moment in time (close to the time of recombination), at which the photons which compose the cosmic microwave background radiation were last scattered, is often mistaken[neutrality is disputed] as marking the end of the radiation era.

Since due diligence is costly, a single big-name investor that has already bought into the company means that it’s fairly likely other investors would buy in without doing extensive due diligence of their own. To a person that isn’t involved in the world of startups, all of this might seem like scalefactor a classic case of fraud – the founders sold a lot of bullshit to VC funds and some customers, and the VCs bought it. In 2017 the company launched their first software product which was built on top of QuickBooks and Xero with the goal to orchestrate the laborious process of bookkeeping.

Step-by-Step Guide: How to Find the Scale Factor of a Dilation

Kansas City-based Firebrand Ventures, which recently opened an office in Austin, put money in the round as well after having invested as far back as ScaleFactor’s seed raise in 2017. (The funding though, overall, bucks a trend we often see of Texas-based startups mostly raising capital from Texas-based VC firms. Specifically, 83 percent (or ten) of the top 12 active investors in Texas in H1 of this year were actually based in Texas). Ahead of yet another funding round, multiple venture capital firms passed on investing, according to people familiar with their decisions, having determined that ScaleFactor was more of a services business than a software platform. To bolster this effort, ScaleFactor hired The Outsourced Accountant, an offshore firm in the Philippines, to help. But no matter where they worked, the unpredictable technology continued to lead to errors in customers’ books. “There’s a lot of them, and they need a lot of help,” he told Crunchbase News.


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