Basis, a startup operating in the artificial intelligence sector, announced on December 17, 2023, that it has successfully secured $34 million in financing through a Series A funding round. The New York-based startup has outlined its intentions to allocate these funds towards the development of its AI-powered accounting automation product, designed to streamline accounting processes for firms in the financial sector.

The funding round was prominently led by Khosla Ventures, with noteworthy participation from NFDG, an AI-focused investment fund managed by former GitHub CEO Nat Friedman and ex-Apple executive Daniel Gross. Additional investors include renowned figures such as OpenAI board members Larry Summers and Adam D’Angelo, as well as Google’s chief scientist Jeff Dean.

As part of the emerging trend in the artificial intelligence industry, Basis is classified among startups developing autonomous agents that leverage AI to perform tasks independently. Industry experts have indicated that such functional systems are projected to take centre stage in the ongoing evolution of machine intelligence in 2024, owing to significant advancements in AI modelling that now enable long-term planning capabilities.

The product being developed by Basis is engineered for implementation within accounting firms, providing an array of automated workflows, such as transaction entry and accuracy verification of data. Moreover, this system is specifically designed to integrate seamlessly with leading ledger platforms, including Intuit’s QuickBooks and Xero.

The advent of Basis's technology addresses a pressing issue within the accounting profession: a critical shortage of accountants. This shortage has been exacerbated by the retirement of the baby boomer generation and a decline in interest among younger individuals in pursuing careers in accounting. Keith Rabois, managing director of Khosla Ventures, underscored this point during interactions with media representatives, noting the importance of automation in addressing workforce gaps.

In related industry developments, it has been reported that Databricks reached a valuation of $62 billion, further underscoring the rapid growth and investment activity within the artificial intelligence and technology sectors.

Source: Noah Wire Services