Company seeks appropriate investment partner to capitalize on the opportunity.
TaxJoe.ai, a revolutionary AI-driven tool designed for accountants, is making headlines by turning down a $25 million investment offer from venture capitalists. In an exclusive interview, CEO Sam Forline shares the reasoning behind this bold decision and his vision for the company’s future.
Sam Forline
Why turn down $25 million?
“My co-founders and I have already been running businesses,” Forline explains. “We have a network of other entrepreneurs and business owners who are doing eight figures or more, so we’ve already been introduced to a couple of VCs and private equity people. The reason we turned down the $25 million offer is because of the huge upside to our product with TaxJoe.ai. Our vision, combined with the team we already have, makes us fully confident that what we’ve built is worth way more. We believe we’ll secure the full $60 million once we’re done with this round.”
Was the offer not enough?
The offer came with strings attached. “It came with equity, and it was lower than what we asked for,” Forline clarifies. “We’re asking for $60 million for a specific share of equity, but they only offered $25 million for a lesser valuation. We have a three-year plan that requires the full $60 million. Turning it down was about ensuring we have the resources to execute our strategy without compromise.”
What’s the ideal investor profile?
Forline and his team aren’t just looking for capital, they’re looking for the right partners. “We want someone who understands the accounting industry and knows where the tax industry is headed,” he says. “Our ideal partner recognizes the problem we’re solving and shares our vision. We want someone who wants to join us on this ride, who sees the massive growth potential in our AI.”
A partner in strategy, not operations
With TaxJoe.ai already boasting a management team of experienced accountants and tech experts, Forline is clear about what the company needs. “We’re operational. We already know how to build and manage teams, hire the best talent, and develop cutting-edge software. What we’re looking for is a strategic partner – someone with access to major players, who’s scaled billion-dollar corporations, and who has connections at the highest levels. That’s where we need support.”
Investing in the product, not shortcuts
Despite the allure of a substantial cash injection, Forline remains focused on building a world-class product. “You have to invest time or money, and we’re doing both,” he says. “Right now, we’re specifically focused on software engineering and AI training. We’re not investing in a sales or marketing team yet because that would be premature. To build the best product, you have to focus on the quality of the software, the AI, and the people managing the project. That’s where we’re putting our millions.”
The scale of the opportunity
TaxJoe.ai operates in a $147 billion industry, and the company’s potential is already evident. “We’ve completed 10,000 tax returns across seven states and are partnering with regional and national accounting firms,” Forline notes. “In one firm alone, our software saved $4 million annually by reducing staffing needs. That’s 87 staff positions saved – a savings of $4.785 million to $6.96 million annually, depending on salary levels.”
The path forward
With a bold vision, a strong team, and a clear plan, TaxJoe.ai is poised to disrupt the tax preparation industry. The company’s mission is to empower accountants by eliminating inefficiencies and allowing them to focus on strategic advisory work.
“We’re looking for the right partner to join us as we tackle the billion-dollar problem,” Forline says.
Forline’s confidence in TaxJoe.ai’s potential is unwavering. By turning down $25 million, the company has signaled its commitment to finding the right investment partner to help realize its vision – a partner who shares its belief in the transformative power of AI for accountants.
Learn more about TaxJoe.ai on their website.
