Fayetteville firm to grow with $163 million investment

Fayetteville-based tax software company Zenwork recently closed a $163 million minority growth equity transaction led by Spectrum Equity, a growth equity firm focused on internet-enabled software and information services companies.

According to Spectrum Equity, which is based in Boston and San Francisco, the investment is the largest growth equity funding in Arkansas in recent years and exemplifies the company’s core belief that “great, capital-efficient businesses can be built anywhere and frequently exist outside of the traditional Bay Area and Northeast tech hubs.”

Founded in 2009, Zenwork provides digital tax compliance and regulatory reporting software and operates under the Tax1099 and Compliancely brands. According to a news release, the investment will allow Zenwork to accelerate product innovation and meet growing business demand for modern, automated technology that address regulatory compliance and power electronic filing and information management.

“We are thrilled to partner with Spectrum Equity, whose experience scaling RegTech software and data businesses will help us navigate this next growth chapter,” said Sanjeev Singh, co-founder and CEO of Zenwork. “Zenwork will be investing heavily in our Tax1099 and Compliancely platforms as we look to be the digital tax compliance partner of choice to all businesses.”