Update: SPRX has since rebranded to Onshore. The rest of this post is unchanged from our original announcement; for what they’re building now, start there.
Today, Vertex Ventures US is thrilled to announce our lead announcement in SPRX Tax’s $12 million Series A round, with participation from Y Combinator, Restive, and Rebel Fund.
SPRX and its AI-driven approach to the tax credit application process is part of a new wave of AI-powered vertical software solutions that are set to transform professional services. From legal tech to financial compliance, we’re witnessing AI’s ability to make complex, specialized services more accessible, efficient, and effective.
SPRX was born from a simple insight: the R&D tax credit process, a program meant to propel businesses into the future, was ironically stuck in the past.
This paradox has real consequences for innovation. Every year, billions of dollars in R&D tax credits go unclaimed, representing a massive missed opportunity for businesses across America. In 2023, nearly $4 billion of R&D tax credits were left on the table annually, with less than 30% of eligible small businesses taking advantage of this powerful incentive for innovation. (Sources: The Tax Adviser, 2019; Tax Foundation Org, 2023)
Dom saw these challenges first-hand as a tax consultant at Grant Thornton. Fortunately, Dom has something most tax consultants don’t — a background in computer science. This rare blend of tax expertise and coding talent allowed him to approach the problem from a fresh perspective. Armed with a determination to challenge the status quo, Dom set out to create something better.
SPRX is modernizing the R&D tax claims process with an innovative, AI-driven approach. Their platform automates over 80% of the manual tasks involved in credit claims, dramatically reducing the time and complexity of the process. By providing comprehensive reports, documentation, and audit support, SPRX makes R&D credits accessible to businesses of all sizes.
The potential impact of SPRX extends beyond individual businesses. By democratizing access to R&D credits, they’re poised to catalyze innovation and growth across industries, potentially unleashing billions in capital for research and development. And R&D tax credits are just the beginning, SPRX is working to automate other tax incentives, such as commercial energy efficiency tax deductions (Section 179D).
This investment will fuel SPRX fuel its product development, team expansion, and market growth, bringing their transformative solution to more businesses nationwide. SPRX is democratizing access to innovation for businesses everywhere, and we’re delighted to be part of the story.
Originally published on Medium.