Campfire, an AI-powered accounting startup, has raised $65 million in a Series B round, it tells This Week in Fintech.

Notably, the fundraise comes just over three months after the San Francisco-based fintech company announced it had raised $35 million in a Series A round led by Accel. Accel doubled down on its investment by co-leading the Series B along with new investor Ribbit Capital.

With this deal, Campfire is now valued at $375 million post-money, according to sources familiar with the transaction who wished to remain anonymous. The company declined to comment on its valuation.

Foundation Capital and Y Combinator, who also invested in the Series A, participated in the latest funding round, along with a group of angel investors, including Karim Atiyeh, co-founder & CTO of Ramp; Brad Floering, VP of finance, FP&A at Snowflake; Steve Sidhu, controller at Clay; Scott Buxton, CFO at Supabase and Naeem Ishaq, former EVP, CFO & chief strategy officer at Checkr.

Previous backers include Capital 49, and other angel investors, including Mercury’s CFO Dan Kang. 

CEO John Glasgow launched Campfire in 2023 to disrupt enterprise resource planning accounting software (ERP) like NetSuite with an LLM-powered alternative. The company performs functions such as automatically itemizing and reconciling AWS cloud computing bills. In general, it’s working to automate common transactional accounting tasks.

Today, Campfire’s customers include Decagon, Replit, PostHog, Heidi Health, LimaOne, Klarity, CloudZero, TwelveLabs, Advisor360 and Tilt.

“We have north of 10xed revenue year to date,” Glasgow said. “We’ve just seen incredible revenue velocity, even for an ERP –  into millions of millions of ARR.” 

The days of startups raising back-to-back rounds in such a short amount of time are reminiscent of the heyday of 2021, when capital was flowing like crazy and valuations were rapidly spiking. While they’re not as common now as they were then, the popularity of AI has led to more deals happening in rapid succession. For example, per Crunchbase data, “there’s a sizable cohort  of companies that have gone all the way from Series A to Series C between 2023 and this year.”

In an interview, Glasgow acknowledged that “there's a lot of noise about AI right now.”

But to the exec, it’s not just noise.

“There's been this notion that maybe finance and accounting folks aren't ready for AI, or AI is not ready for them, and we still have work to do, but we are certainly seeing that there's real value and impact that it is driving for our customers,” he added. “And so we truly feel the time is now to start to adopt AI for these corporate finance and accounting teams.”

Part of the reason that Campfire chose to raise a Series B so quickly was tied to its plan to build its own LLM, according to Glasgow.

“And an LLM is not cheap. We have a phenomenal financial data set, but this Series B allows us to make expensive investments such as being able to build out an AI engineering team at such an early stage of our company,” he said.

John Locke, partner at Accel, notes that after Campfire’s last raise, several Accel portfolio companies reached out to demo Campfire, in addition to other companies that had generally heard about the company’s offering for the first time..

“That's always a great proxy for us on how important something might be over time – if a lot of our companies are trying it and really liking it,” he said. “The demand is quite a bit higher than what we even anticipated. And we want to make sure that John and the team are appropriately enough capitalized to meet that demand.”

Overall, the investor believes that the market opportunity for Campfire is “immense.” Competitors who have recently also raised capital include DualEntry and Rellit.

“We’re doing all we can,” he said, “to set up Campfire to win.”