Tax AI startup Onshore raises $31M to chase $200B in unclaimed credits
What's the deal? Onshore, an AI-powered tax platform formerly known as SPRX, has raised $31M in Series B funding led by FPV VenturesDealroom has a profile for this one. Try Dealroom →. Vertex VenturesDealroom has a profile for this one. Try Dealroom →, ADP Ventures,Dealroom has a profile for this one. Try Dealroom → Y Combinator, and Restive VenturesDealroom has a profile for this one. Try Dealroom → also participated. The round brings total funding to $46M.
The New York-based startup uses machine learning to automate R&D tax credit studies — a process that typically takes traditional accounting firms 270 days. Onshore says it can do the same work in 28 days.
Why now? More than $200 billion in US tax incentives go unclaimed each year. Traditional providers rely on manual reviews and statistical sampling, leaving money on the table and exposing clients to audit risk.
The R&D tax credit software market is growing as businesses seek automation. AI tools can now analyse project data, identify eligible expenses, and generate audit-ready documentation faster than manual processes.
What could go wrong? Onshore operates in a heavily regulated space where IRS interpretations can shift. Any changes to R&D credit rules could affect its core business.
The company faces competition from Big Four accounting firms and a growing field of specialised software providers.
The signal: Tax services are following the same playbook as other enterprise functions — moving from billable hours to software-driven outcomes. "Every critical enterprise function has been modernised. Corporate tax got… more accountants," wrote chief executive Dominic Vitucci.
Onshore has helped more than 500 companies identify over $600M in tax incentives. It plans to expand beyond R&D credits into broader accounting and compliance workflows.
The funding reflects investor appetite for vertical AI applications tackling high-value problems in industries resistant to change.
Sources:
BusinessWire
Onshore
Y Combinator
Data Insights Market
B.S.
