In a statement posted on the Botkeeper website over the weekend, Enrico Palmerino wrote that the automated bookkeeping platform he founded in 2015 is shutting down.
“Eleven years ago, we set out with a radical premise: that the age-old profession of accounting could be transformed by the ever-advancing power of Artificial Intelligence. In 2015, we weren’t just a startup; we were pioneers in a landscape that didn’t yet understand nor trust that AI could handle the nuance of a general ledger,” Palmerino, who is also the company’s CEO, wrote on Feb. 7. “Today, it is with the heaviest of hearts, and also a profound sense of gratitude for the journey, that I announce the closure of Botkeeper.”
Botkeeper had raised nearly $90 million in funding, including $42 million in Series C funding in November 2021 led by Grand Oaks Capital, an investment firm founded by Paychex founder and chairman Tom Golisano.
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![botkeeper[1]](https://www.cpapracticeadvisor.com/wp-content/uploads/2021/11/botkeeper_1_.61855a1af01b4.png)
November 5, 2021
Botkeeper Raises $42M in Series C Funding
That followed $25 million raised in Series B funding in June 2020 led by Point72 Ventures, the global venture capital firm backed by prominent investor Steve Cohen.
Palmerino wrote that Botkeeper’s Infinite solution, which helped to streamline automated bookkeeping and back-office accounting for firms without the need for outsourcing, “had become the AI powerhouse we always dreamed of” by the end of 2025. “It was capable of cleaning up years of messy data in minutes, autonomously reconciling accounts, and coding 80%+ of transactions with a staggering 98% accuracy.”
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He also noted that Botkeeper was two months away from launching “Cassie,” the platform’s voice-activated assistant, and its autonomous check-scanning technology.
“People often ask why or how a tech company, having raised significant amounts of capital from marquee investors, closes suddenly. In our case, it was a ‘perfect storm’ of macro-economic shifts that arrived more swiftly than we could course-correct,” Palmerino wrote.
He continued: “Over the years, we oscillated between Product Concept Fit, a term I coined internally, and Product Market Fit. As quickly as we iterated on our offering and saw early signs of traction, we were met with equally rapid market shifts. Our team and investors remained optimistic, as we were attempting to modernize one of the oldest and largest markets, leading as a trailblazer and innovator.
“Then in late 2025, we faced a series of unexpected industry consolidation that significantly impacted our largest clients and, in turn, our revenue and planned growth. The speed and scale of these changes altered our financial outlook in a matter of weeks, ultimately leaving us without a sustainable path forward and requiring us to begin an orderly wind-down of the business.
“I have spent the last several weeks pursuing every possible option—exhausting acquisition opportunities, negotiating with lenders, and seeking bridge capital to buy us time to pivot. Because of the sensitive nature of these negotiations and the strict confidentiality required by our partners, I was unable to share the full state of the business sooner. I deeply regret how quickly our momentum toward profitability shifted into insolvency.
“As a founder, I must admit a hard truth: despite our technological triumphs, we did not reach a level of product-market fit strong enough to withstand rapid industry shifts or changing market conditions before our time ran out. We built a world-class solution, but the market moved faster than our capital could keep up.”
It hasn’t been confirmed how many people will lose their jobs due to the Botkeeper closure.
Jody Padar, who refers to herself as “The Radical CPA,” was Botkeeper’s vice president of partner development and strategy for close to two years. In a LinkedIn post over the weekend reacting to the news of her former employer closing, she wrote that “Botkeeper mattered.”
It mattered because it forced an old profession to confront a hard truth…
AI wasn’t coming someday. It was already here. And it wasn’t theoretical. It could do real work. Messy work. Accounting work.
For years, Botkeeper pushed the industry out of ideas and into execution. Out of “interesting” and into “operational.” That shift didn’t happen by accident, and it doesn’t disappear because a company winds down.
Innovation isn’t linear.
Pioneers don’t always get to be incumbents.
But they do change the terrain.
The accounting profession looks different today because of the people who took that risk…The builders, the believers, the clients who moved early before it was safe.
I’m proud of the role I played in that movement. Grateful for the people. And even more clear on what comes next.
Because the future of accounting isn’t about replacing humans with AI.
It’s about leaders who know how to use it — wisely, strategically, and at scale.
And that work is just getting started.
As Humans, our relationship with AI has always been complicated!
Jason Kendall, a CPA who owns Paseo Advisors in Bountiful, UT, wrote on LinkedIn that he thinks there could be other accounting automation solution providers that will suffer the same fate as Botkeeper.
“There are now so many incredible tools that are out there on the market to automate the transactional and repetitive tasks that are part of accounting,” he wrote. “However, with how unique each individual business and their accounting needs are, companies that are trying to further automate the more complex elements of accounting are facing a task that requires significant capital. I believe there will be many other companies that will run out of capital trying to find more solutions for automating accounting.”
Lot Buluran-Tala, a CPA who is the co-founder of Tala Business Consulting, wrote on LinkedIn that Botkeeper shutting down highlights an important conversation for accounting technology.
“The path forward is clear. Technology should act as an enabler for accountants, improving efficiency and insight while keeping professionals at the center of the work. Botkeeper helped introduce many of us to this shift over a decade ago,” she wrote. “My thoughts are with the employees who suddenly lost their jobs and the customers now searching for replacements and support. That kind of disruption is never easy.”
‘My sincerest thanks’
In his Botkeeper goodbye message, Palmerino thanked his employees, the company’s clients, and investors.
“To my Team: You made the vision a reality. You are the smartest, most resilient, determined, ride-or-die people I have ever known. My greatest regret is that I could not provide the long-term home your talent deserves.
“To our Clients: Thank you for being the early adopters, the challengers, and the partners who helped us define what ‘Modern Accounting’ looks like. And thank you for the risk and fortitude needed to elicit an industry change even if Botkeeper must now pass the baton.
“To our Investors: Thank you for believing in Botkeeper this past decade and supporting us through every peak and valley until the very end. The team is forever grateful.
“We didn’t reach the summit we intended, but we changed the landscape of the mountain forever and I am immensely proud of the 11 years we spent together, and I will forever be a champion for the revolution we started.”
Photo caption: Enrico Palmerino, founder and CEO for Botkeeper
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Tags: Accounting, Automation, Botkeeper, Enrico Palmerino, Technology
