Basis Secures $34 Million in Series A Funding

By Anna Tong

(Reuters) – Artificial intelligence startup Basis has raised $34 million in a Series A funding round for its AI-powered accounting automation product, the company announced on Tuesday.

The round was led by Khosla Ventures, with participation from NFDG, an AI-focused fund managed by former GitHub CEO Nat Friedman and ex-Apple executive Daniel Gross. Notable investors also include Larry Summers, Adam D'Angelo, and Google's chief scientist Jeff Dean.

Basis is part of a growing category of AI startups focused on creating autonomous agents—AI systems capable of executing actions independently. Industry leaders like OpenAI CFO Sarah Friar predict that such systems will shape the AI agenda in the coming year as models advance in long-term planning capabilities.

Basis' product is tailored for accounting firms, performing tasks like entering transactions and verifying data accuracy. It integrates with popular accounting systems, including Intuit’s QuickBooks and Xero.

Large firms, such as Wiss, which has 450 accountants, have reported up to a 30% reduction in time spent on tasks due to using Basis, according to CEO Matt Harpe. The product acts similarly to a junior accountant, allowing staff to review the AI's output rather than perform manual tasks.

Basis addresses the critical shortage of accountants caused by retiring baby boomers and the declining interest from younger generations. Khosla Ventures managing director Keith Rabois emphasizes this need, noting that the accounting sector employs over 3 million in the U.S. However, candidates taking the annual CPA exam have decreased by 33% from 2016 to 2021, as reported by the Association of International Certified Professional Accountants.

To cope with this shortage, many global accounting firms have turned to outsourcing in hubs like India. Additionally, accounting is considered highly susceptible to AI disruption, with a 2023 OpenAI paper indicating that automation driven by large language models could affect 100% of accountants' tasks.