Neo.Tax builds ML-driven tax automation focused on helping early-stage companies and SMBs claim R&D tax credits (often worth up to ~$250,000) and provides white-glove support alongside its software. The company partners with fintechs like Mercury to embed its product into platforms serving startups and is also gearing its offering toward accountants and broader fintech partners. It plans to release a product to shrink an accountant’s client-preparation workflow from 10–15 hours to 10–15 minutes and is focused on improving its core tax automation technology. Neo.Tax reported 3x revenue growth in 2021 and set a goal of over 5x growth in 2022; it has been profitable in the past but is prioritizing growth now. The business expanded headcount from nine employees last year to 20 today and is actively hiring across teams. Raised capital will be used to build better software, improve tax automation, grow the team, and invest in brand and market awareness. Neo.tax offers a software product that ingests accounting, payroll and financial data to categorize transactions and apply machine‑learning models to automate tax and accounting workflows. The company launched its focused product for claiming R&D tax credits about two months before the article and uses that vertical as a beachhead to collect training data. Its long‑term vision is to build specialized ML models by business domain (early‑stage startups, Shopify stores, restaurants, etc.) and to become a data layer for small business accounting on top of which additional services can be built. Neo.tax charges a performance fee equal to 5% of the tax value it generates and only collects that fee when the refund is received. The team includes founder Firas Abuzaid (Ph.D. computer science, ML research at Stanford), Ahmad Ibrahim (formerly at Intuit on small‑business accounting products), and Stephen Yarbrough (former head of tax at Kruze Consulting). In its first month after launch the company reported about $100,000 in revenue. Neo.tax is positioning its deeper technical infrastructure and AI focus to compete with incumbents and hybrid human+AI bookkeeping services.

Total raised

$13M

Funding rounds

2

Latest round

Series A

Latest activity

Feb 2022