SingleFile, a legal tech startup based in Seattle that helps companies file compliance reports with government agencies, raised a fresh round of capital to support its growth.
The 5-year-old startup, originally incubated out of Pioneer Square Labs, landed $6.5 million in a round led by Foundry Group, with participation from PSL Ventures — the venture arm of Pioneer Square Labs — The LegalTech Fund, Underdog Labs, and other previous backers. Total funding to date is north of $15 million.
SingleFile is riding tailwinds from new regulations such as the recently implemented Corporate Transparency Act (CTA), which requires more than 30 million small business owners to report the names of their owners.
Even as the new law is getting challenged in court, it’s one example of regulatory burden that SingleFile aims to help alleviate.
“Compliance is going to keep growing — and that’s just going to fuel our growth,” said CEO Aaron Finn.
Law firms such as Wilson Sonsini, Fenwick and Gunderson Dettmer use SingleFile to help their clients file documents to local, state, and federal offices. Some of those firms are also investors in SingleFile.
SingleFile works with customers in other verticals such as venture capital, private equity and real estate.
In addition to CTA compliance, SingleFile helps customers with company formation documents, business license renewals, employee related filings, and state franchise, excise and use taxes.
The idea is to replace using email, PDFs, and spreadsheets as part of the compliance process. Finn likens SingleFile to the “Stripe of compliance,” alluding to the cloud-based payment processing giant.
“We want to be able to take company information when it’s needed from the systems of record, pass it to the government agencies that require it, and make sure not a lot of human interaction needs to happen between those two things,” he said. “That’s the ultimate vision.”
The startup, which focuses on the U.S., competes against a number of other traditional compliance services companies such as CT Corporation and CSC. It also faces competition from newer tech platforms such as Carta that are helping companies comply with the CTA.
Finn pointed to a recent RFP process held by global law firm Goodwin Procter specifically for CTA compliance. SingleFile won the contract.
“We’re bringing modern technology and venture innovation ideas to this older industry,” Finn said.
The company, which employs more than 25 people, is focused on the U.S. for now.
Finn, the founder and former CEO of AdReady, joined as CEO in 2021. The company was founded by former ProQuest exec Sean Flynn, who is currently chief legal officer.
SingleFile is a finalist for the Startup of the Year category at this year’s GeekWire Awards.
