In conjunction with the financing, Peter Sobiloff, managing director at Insight Venture Partners, will join the board and Jon Rosenbaum, senior associate, will be a board observer. The new financing round will be used to fund the company’s product roadmap, partner ecosystem and international expansion as LeaseAccelerator continues to pursue its tremendous growth in the Enterprise Lease Accounting software market.
Market demand for LeaseAccelerator’s applications is being driven by a new set of lease accounting standards that public companies will need to adopt starting on January 1, 2019. These new standards for U.S. GAAP and IFRS will require companies to move trillions of dollars of “operating leases” onto their balance sheets. The average Fortune 500 company has between 1,000 and 10,000 leases representing a dollar value of between $100 million and $1 billion. Despite the large dollar value of these portfolios, few companies have an enterprise application to manage their leases. Instead, real estate, computers, vehicles and other equipment leases have often been tracked on spreadsheets. LeaseAccelerator offers an Enterprise Lease Accounting software application that automates the record-to-report business processes required to comply with the ASC 842 and IFRS 16 standards.
Following a year of record growth in which LeaseAccelerator tripled revenues and quadrupled its customer base, the company will use the new funding to accelerate its growth strategy. LeaseAccelerator will expand its international operations to better support multinational customers. Additionally, the company will invest in expanded training, technical support and success programs for its customers. LeaseAccelerator will also significantly expand its R&D organization to support a wider variety of industry-specific use cases.
“The biggest challenge in the Enterprise Lease Accounting software market in 2018 is a lack of capacity. There is explosive demand for technology to transition to the new lease accounting standards, but most software providers are capital constrained,” said Michael Keeler, CEO of LeaseAccelerator. “With the new funding from Insight Venture Partners, we will be able to aggressively invest in product development, testing, training and implementation support resources to meet the rapidly evolving needs of our customers.”
“We are thrilled to welcome LeaseAccelerator into our portfolio and partner with them to accelerate their expansion in the Enterprise Lease Accounting space,” said Peter Sobiloff, managing director at Insight Venture Partners. “LeaseAccelerator’s impressive growth has been demonstrated by their technology, expertise and network. We look forward to helping the team continue their expansion and evolve their product to best serve their customers.”
Atlas Technology Group acted as the sole financial adviser to LeaseAccelerator in conjunction with the transaction.
LeaseAccelerator offers the market-leading SaaS solution for Enterprise Lease Accounting, enabling compliance with the current and new FASB and IFRS standards. Using LeaseAccelerator’s proprietary Global Lease Accounting Engine, customers can apply the new standards to all categories of leases including real estate, fleet, IT and other equipment at an asset level. On average, LeaseAccelerator’s Lease Sourcing and Management applications generate savings of 17 percent on equipment leasing costs with smarter procurement and end-of-term management.
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