Acumatica Raises Over $13 Million in New Funding Round, Led By Bain Capital-Owned MYOB / looks to battle NetSuite

Acumatica, provider of cloud accounting software, today announced that the company has raised $13.3 million in a new funding round, led by investment from Australian accounting software powerhouse MYOB, an Acumatica strategic OEM partner.

This new funding, together with previous amounts raised in rounds led by Runa Capital and Almaz Capital, and Oslo-based Visma, another Acumatica OEM partner, brings total funding well in excess of $30 million.

“This investment validates the market acceptance of the Acumatica solution,” said CEO Jon Roskill. “The investment will allow us to implement aggressive growth plans in three areas: Broadening our product line; accelerating the expansion and enablement of our partner ecosystem; and upsizing our brand in a big way.”

“It’s an exciting time for businesses,” Roskill added. “Customers can now unlock their potential with Acumatica’s cost-effective, modern alternative to the NetSuite blackmail.”

MYOB, Australia’s leading business software provider, announced plans to invest in Acumatica and take a board seat with the fast-growing Cloud ERP provider at Acumatica’s Partner Summit in August this year.

MYOB CEO Tim Reed said: “We believe in the innovation of the Acumatica technology and are investing in our mutual success. Last year, we announced our multi-million-dollar deal to OEM Acumatica’s ERP solution platform. One year later, we are in final phase of piloting the Advanced product, and have customers live on MYOB Advanced, powered by Acumatica technology.”

Acumatica, which sells exclusively through its worldwide ecosystem of over 350 partners, announced its 1,000th customer and launched beta of its latest version 5.0 at its annual Partner Summit this August. Its customer base ranges from small and medium businesses to public companies such as Youngevity and Frost Bank, spanning industries from manufacturing to professional services.

About MYOB

Established in 1991, MYOB is Australasia’s largest business management solutions provider. It makes life easier for over 1.2 million businesses, and provides support via many service channels including a network of over 20,000 accounting firms, bookkeepers and other consultants. MYOB’s solutions simplify accounting, payroll, HR,

tax, practice management, CRM, websites, job costing, inventory and more, for businesses of all sizes. It is committed to ongoing innovation, particularly in cloud solutions, and now spends over AU$30 million annually on research and development. In 2013, MYOB expanded its offering with the acquisition of accounting solutions provider BankLink. Visit myob.com.

About Acumatica

Acumatica is a leading provider of cloud business management software that empowers small and mid-size businesses to unlock their potential and drive growth. Built on the world’s best cloud and mobile technology and a unique customer-centric licensing model, Acumatica delivers a suite of fully integrated business management applications such as Financials, Distribution, CRM and Project Accounting, powered by a robust and flexible platform. In an interconnected world, Acumatica enables customers to take full control of their business; to play to their strengths, since every business is unique; and to empower their people by going wherever their people go, on any device.

Cloud accounting startup Acumatica raises $13 million, looks to battle NetSuite

 John Cook for Geekwire.com writes: San Mateo, Calif.-based NetSuite is apowerhouse in the business software arena, a 16-year-old company with more than 2,500 employees and a market value of nearly $7 billion.

But a six-year-old Seattle area startup is looking to takes some chunks out of NetSuite’s ERP armor, and it just landed $13.3 million from some big players to help make that mission a reality.

Kirkland-based Acumatica — led by former Microsoft corporate vice president Jon Roskill — today is announcing the new capital from Australia accounting software company MYOB, Runa Capital, Almaz Capital, and Oslo-based Visma, a long-time partner of Acumatica. Total funding in the maker of cloud accounting software now stands at about $30 million.

There’s certainly no love lost between Roskill and his much bigger rival NetSuite. In an interview with GeekWire, Roskill said that Larry Ellison-backed NetSuite plays “dirty,” adding in a press release that the Acumatica service offers a “modern alternative to the Netsuite blackmail.”

With the new funding in the bank, Roskill said that Acumatica will be able to invest in some key business areas while striving for profitability by the end of next year. (NetSuite also is losing money, posting a $23.2 million net loss during the second quarter. It reports financial results for the third quarter on Thursday). Roskill said that Acumatica will likely double its revenue again next year.

“At that point, we start to become — probably the best word to use — is dangerous,” Roskill tells GeekWire. “Right now, we are more than a distraction or annoying, but our goal is to really become dangerous to someone like a NetSuite.”

As it stands now, Roskill said they bump into NetSuite on about 20 percent of deals, with each company winning about half of those bids.

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