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Fayetteville Firm Zenwork Announces $163M Investment

2 min read

Software firm Zenwork of Fayetteville announced Tuesday a $163 million investment by Spectrum Equity of Boston and San Francisco.

Axios reports that the investment, the company’s first outside investment, is nearly twice the amount of venture capital invested in Arkansas companies during the first nine months of the year.

Zenwork employs about 80 people and provides digital tax compliance and regulatory reporting software for businesses under the brands Tax1099 and Compliancely. Spectrum Equity is a growth equity firm focused on internet-enabled software and information services companies. 

Zenwork, founded in 2011 as Tech Atlantis, said the investment will accelerate product innovation and help it meet demand from businesses for its automated technology that addresses regulatory compliance and power electronic filing and information management.

Zenwork Co-Founder and CEO Sanjeev Singh said in a news release that Spectrum Equity’s experience scaling businesses like his will “help us navigate this next growth chapter.” He added that Zenwork will invest heavily in its Tax1099 and Compliancely platforms.

Adam Margolin, managing director at Spectrum Equity, described Zenwork as a “bootstrapped company” that has achieved success by focusing on the digital tax reporting and onboarding requirements of its diverse customer base.”With millions of businesses subject to tax informational reporting and likely to adopt e-filing over the coming years, we see a massive opportunity for Zenwork to build on its market leadership position through product investments and innovation,” he said in the release, 

Margolin and Cameron Ghorbani, also of Spectrum Equity, will join Zenwork’s board. Spectrum Equity has previously invested in Ancestry.com, Survey Monkey and GrubHub.

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