Town has raised $18m in a seed funding round to enhance its tax support services for small businesses.
The round was led by First Round Capital, with participation from Conviction, Alt Capital, Defy, Depth, Mischief, and WndrCo. Prominent angel investors, including Adam D’Angelo, Christina Cacioppo, Helen Min, Immad Akhund, Soleio Cuervo, and William Hockey, also contributed.
This capital injection will accelerate Town’s efforts to refine its AI-powered tax automation, expand its services, and grow its product, go-to-market, and accounting teams.
Small businesses play a crucial role in the economy, driving job creation, fostering innovation, and keeping wealth circulating within local communities. However, the tax system has long placed them at a disadvantage, Town explained.
Town aims to bridge this gap by offering small businesses a dedicated tax department that mirrors the benefits enjoyed by large corporations. The platform combines human expertise with AI-driven automation to simplify tax compliance and optimise financial strategies.
Key features include dedicated advisors who work closely with clients, AI-powered automation to streamline data collection and deductions, and a flat-fee pricing model that eliminates the unpredictability of traditional hourly billing. By integrating directly with a business’s financial systems, Town ensures proactive and efficient tax management throughout the year, preventing last-minute stress and maximising savings.
Since launching customer onboarding just two months ago, Town has already assisted hundreds of businesses in preparing their FY 2024 taxes. The company has formed strategic partnerships with vertical SaaS providers, FinTech platforms, and accounting firms, embedding its tax services into platforms where entrepreneurs already manage their finances.
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