| Founded | 2014 |
|---|---|
| Closed | 2020 |
| Country | USA |
| Sector | Fintech |
| Total raised | $103M across 7 rounds (Bessemer, Coatue) |
| Collapse type | Fraud Explosion |
| Founder | Kurt Rathmann |
ScaleFactor
"The accounting SaaS that sold AI-powered books — and quietly hired an army of human accountants to fake it"
Sudden collapse triggered by fraud exposure
Key Events Timeline
ScaleFactor raised $103M on the promise of fully automated accounting for small businesses, but the AI never performed as marketed.
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