Robert Ambrogi Blog
Blue J, the Toronto-based tax research and advisory platform, said today that it has raised $176 million in Series E capital to scale its agentic AI and expand into new geographic markets.
The round was led by JMI Equity, a leading growth equity investment firm. Existing investors Oak HC/FT and Sapphire Ventures also participated in the round, along with Intrepid Growth Partners.
The round values the company at more than $700 million – more than $1 billion in Canadian dollars.
The company said it will use the new capital to scale Workflows, its agentic AI for tax work, and to expand in the United Kingdom and internationally.
“An answer is rarely the end of a tax professional’s job. It’s the beginning of the work a client needs done,” said Benjamin Alarie, Blue J’s CEO and cofounder, in an announcement. “We’re building toward a world in which every tax professional has a team of AI agents at their side, able to carry that work, under their direction, from the client’s first question to the finished partner-ready deliverable.”
Since its founding in 2015, the company says, its platform has been used to answer more than 14 million tax questions. Workflows builds on that research, enabling tax professionals to hand over work to Blue J.
Its agents can perform tasks such as reviewing returns before filing, preparing IRS notice responses, analyzing partnership, LLC and trust agreements, assessing multistate nexus and drafting client communications.
The output includes supporting sources and enables inspection of the steps it went through in performing the work.
The company says that the round follows a year of rapid growth in which annual recurring revenue grew 165% in the 15 months leading up to the Series D. More than 6,500 organizations use Blue J, including Big Four firms and Fortune 100 companies.
The company has doubled its team over the past year and expects to exceed 200 employees by year-end.
In October, Blue J partnered with Legora to bring its tax research into Legora’s agentic operating system for legal work, which is used by more than 140,000 legal professionals.
“JMI is focused on partnering with AI innovators who deliver unique value for specific markets. Blue J has done exactly that for tax,” Jack Duane, principal at JMI Equity said in a statement. “We believe Blue J has built the best research platform in the market and we are looking forward to supporting the next chapter of their growth.”
As part of the investment, Jack Duane will join Blue J’s board of directors.
JMI is also an investor in legal tech companies Agiloft and Clio.