Anrok, a sales tax solution provider for SaaS businesses, has announced the completion of a $4.3m seed funding round.
Led by Index Ventures and Sequoia Capital, the investment round comes alongside the launch of Anrok’s new tax compliance platform.
The platform supports online businesses in determining, calculating, and managing sales tax obligations, as SaaS businesses face increasing shifts in the taxability of software.
Michelle Valentine, CEO and co-founder of Anrok, said that governments are “finally waking up to the reality that much of the economy has moved online”.
She added: “For software companies, knowing where your customers are and having to calculate the appropriate tax amount in real time is far from straightforward.
“That’s why we’re excited to deliver Anrok to customers to help them navigate this new environment and accurately calculate tax for ever-changing subscription invoices.”
Based in San Francisco, Anorak provides its end-to-end solution to companies at every level, without the need for an in-house tax expert.
Mark Goldberg, partner at Index Ventures, said: “We know from the experiences of our portfolio companies that getting sales tax right isn’t something any founder aspires to spend time on, and yet consequences are dire for those that ignore.
“We’re excited to not only support Anrok on their journey to help SaaS businesses ensure tax compliance, but to keep a rockstar alumni in the Index family and to co-lead with Bryan Schreier and the team at Sequoia.”