Growth equity investment firm Edison Partners announced leading a $20 million growth investment in K1x, a leading SaaS financial technology company and pioneer of all-digital K-1 data aggregation and reporting for the capital markets. Edison is doubling down on K1x, making an additional investment to accelerate its momentum in modernizing K-1 reporting and data management.
Investing in alternative assets requires the filing of IRS Schedule K-1 forms with the U.S. federal government and related forms for state agencies. Historically, investors and their advisors have used time-consuming analog technology, prone to inaccuracies, late information and hidden costs. Using proprietary, patented artificial intelligence, K1x has built and evolved best-in-class software that has brought digital transformation to K-1 reporting, which connects institutional investors and their advisors to seamlessly and efficiently exchange alternative investment data. The technology has drawn interest from especially financial firms’ chief financial officers seeking to leverage AI and new technology to reduce costs and risks.
The K1x growth has been on a continuous, upward trajectory. Over the last year the K1x team increased the number of product releases by 4x, driving a 90% increase in K1x product users. Since Edison’s initial investment in December 2022, the company has seen 130%+ revenue growth in an estimated $3.3B total addressable market.
“Partnering with K1x has been an absolute pleasure. Ever since the spinout and our initial investment less than two years ago, we have built a well-oiled enterprise SaaS machine that is capitalizing on multiple tailwinds. Their products are unique, patented, end-to-end, and fine-tuned over several years to become the first Digital K-1 TM experience,” said Jennifer Lee, Partner, Edison Partners. “With ongoing changes to the tax laws and compliance, continued expansion in alternative investing, countless organizations that still need to digitize, and the prowess of K1x’s management team, we are thrilled to be doubling down on our investment and continue our support.”
K1x customers include 16 of the top 25 accounting firms and 44 of the top 100 institutional investors. The latest financing brings the company’s total funding to $40 million and will be used for product innovation and expansion, as well as serving existing and future clients with industry leading market facing talent.
“Because K1x is solving one of the biggest, nastiest problems in tax compliance, the market’s demand for our unrivaled products keeps hitting new highs. This latest round of funding from Edison represents not only the market’s confidence in us, but it also multiplies our opportunity to further invest in our world-class products and services. I could not be prouder of our team, more grateful to our investors, and more excited about a better future where tax professionals and investors can finally exchange digital alternative investment data friction-free,” said John LaMancuso, CEO K1x.
Edison’s investment in K1x follows other investments modernizing tax, accounting, and compliance functions including Dash Solutions, Comply, Billtrust, GAN Integrity, and Liberty Tax among others. Since its inception in 1986, Edison has invested in more than 260 companies.
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