Jeff Bezos Backs Startup Aiming to be AWS for SMB Accounting

Addressing Back-Office Challenges for Startups and Small Businesses

Maintaining efficient back-office operations, including bookkeeping and tax management, often presents a significant hurdle for startups and small to medium-sized businesses (SMBs).

Frequently, existing solutions like QuickBooks may prove inadequate for evolving business needs.

Pilot's Emergence and Growth

Recognizing this gap, Waseem Daher, Jeff Arnold, and Jessica McKellar – experienced entrepreneurs – established Pilot. Their goal was to deliver affordable back-office support to startups and SMBs.

Having amassed a customer base exceeding 1,000, the company has demonstrated substantial growth. This progress has now been further validated through significant investor support.

On Friday, Pilot announced the successful completion of a $100 million Series C funding round, effectively doubling the company’s valuation to $1.2 billion.

Investment Details

The funding round was co-led by Bezos Expeditions – the personal investment fund of Amazon founder Jeff Bezos – and Whale Rock Capital, a $10 billion hedge fund.

Additional participation came from prominent investors including Sequoia Capital, Index Ventures, and Authentic Ventures.

Previously, Pilot secured a $40 million Series B round in April 2019, co-led by Stripe and Index Ventures. To date, the company has raised over $158 million in funding since its founding in 2017.

Founding Team Expertise

The Pilot team possesses a strong track record of success. They previously founded and successfully sold two companies: Ksplice (acquired by Oracle) and Zulip (acquired by Dropbox).

Beyond Software: A Comprehensive Approach

Pilot distinguishes itself by offering more than just software. The company integrates its platform with a team of accountants to provide services like “CFO Services” to SMBs lacking a dedicated finance department.

Furthermore, Pilot delivers monthly variance analysis to all bookkeeping clients, effectively functioning as a controller and enabling informed budgeting and spending decisions.

The company also assists businesses in identifying and claiming small business tax credits they might otherwise miss.

Transaction Volume and Client Base

In the past year, Pilot processed over $3 billion in bookkeeping transactions for its diverse clientele. These customers range from pre-revenue startups to established companies generating over $30 million in annual revenue.

Notable clients include Bolt, r2c, and Pathrise.

Strategic Partnerships

Pilot has established co-marketing partnerships with leading companies such as American Express, Bill.com, Brex, Carta, Gusto, Rippling, Stripe, SVB, and Techstars.

The "AWS of SMB Backoffice" Vision

Pilot aspires to become the “AWS of SMB backoffice.” Co-founder Waseem Daher, who began his career as an Amazon intern, envisions the company handling all back-office tasks, allowing businesses to concentrate on growth and customer acquisition.

Customer Satisfaction and Referrals

Pilot prioritizes an “exceptional customer experience.” Daher reports that over 80% of the company’s business originates from customer referrals and organic interest.

Kristov Paulus, a partner at Whale Rock, highlighted the synergy between Pilot’s white-glove service and its “carefully engineered” software.

He stated that Whale Rock looks forward to supporting Pilot in its mission to make back-office services as accessible, scalable, and widespread as AWS has made cloud computing.

Lessons from ScaleFactor

Pilot’s approach is reminiscent of ScaleFactor’s, an Austin-based startup that raised $100 million before ultimately failing. However, a key difference lies in Pilot’s demonstrated ability to maintain high customer satisfaction.

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