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K1x announces record-breaking 2023

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BY Scott Turner
January 26

Tax compliance professionals in alternative investments face a perfect storm—how to  manually produce and receive 40 million K-1s and another 1.9 million 990s annually while struggling with historic staffing shortages, changing IRS and state regulations, investor frustrations, and disparate technology. Addressing this $42 billion problem, K1x took a big step in 2023 in its mission to eliminate friction in capital markets by creating, enabling, and exchanging alternative investment data seamlessly. Today K1x is announcing record growth in revenue, product performance, people, and partners.

APR Growth and Market Momentum

 

Through a mix of new logos and client expansion, K1x achieved an annualized revenue growth rate of 90% in 2023. Clients now include 15 of the top 25 accounting firms, 51 of the top 100 non-profits, 31 of the top 100 institutional investors, and 10 of the top 50 private foundations and family offices. K1x President and Co-founder, Geralyn Hurd, said, “We’re pleased to add so many amazing clients and we look forward to partnering with them and others to solve the K-1 distribution problem.”

74%
increase

 

In August, K1x announced former IRS Commissioner, Charles “Chuck” Rettig had joined its board of directors. Mr. Rettig’s commitment to the Digital K-1TM and its support of the new IRS Paperless Processing Initiative earned K1x over 300 million media impressions with 12 pieces of media coverage including Bloomberg Tax, Politico, CNBC and MSN. The increase in market interest is further reflected in the company’s 74% increase in brand awareness and a 2.6X increase in inbound demo requests for its automation software.

Products

 

K1x launched an important update to its industry-leading K-1 reading capabilities delivering unprecedented scale and speed to K-1 Analyzer. C-TRAC and K-1 Navigator continue to lead the pack.

K-1 Analyzer updates:

•  Scale: While some market entrants use dated OCR technology to read only the front page of a PDF K-1, K1x uses its patent-pending AI to read all 1200 fields of the K-1 including the notoriously tedious K-3.

 

Speed: Even with the 6x jump in the number of fields to read, K-1 Analyzer increases raw processing speeds by 33% over the previous version. The result? Automated data extraction from PDF K-1s fell to 11.18 seconds per document, 0.35 seconds per page with K-1 Analyzer! Even when you incorporate human review time, K-1 processing times fell from 45 minutes to 6 minutes–now 7.5x faster than manual methods. Tax compliance teams spend less time processing forms and more time on higher value work and client relationships. In the month of September alone, K1x saved its clients a remarkable 5.3 work years of manual data processing.

K-1 Navigator updates:

K1x extended its leadership in alternative investment data distribution by introducing the Digital K-1 TM. While K-1 Analyzer uses patent-pending AI to digitize PDF-based K-1s, K-1 Navigator produces the industry’s first natively digital K-1, bypassing the PDF altogether. The Digital K-1 TM frees alt investment data from the confines of the PDF. This streamlines sharing in the K-1 ecosystem including K-1 producers, K-1 receivers, accounting firms, tax software, and taxing jurisdictions.

Award News

 

Further demonstrating K1x product success, Tech Ascension announced that K1x is the 2023 FinTech Winner for best Compliance Solution.

People

In 2023 K1x doubled its employee headcount, adding key roles in product, client success, and other teams. In an anonymous company survey, some employees cited the K1x culture and the “opportunity to build something from the ground floor” as their motivators. One employee summed it up, saying, “I like the numerous opportunities to contribute my ideas. I enjoy the innovative & hard-working mindset of my coworkers. I appreciate the leadership team’s recognition of my skills and abilities to contribute to the success of K1x.” Another added, “This is an amazing company full of incredible people. We provide a service to our clients that is truly life-changing for them, and this is an exciting time to become part of building that.”

The path leading me to K1x has been so rewarding. I’ve personally benefited from using these products and I continue to feel energized by the innovative drive of our entire team across all departments to solve for a better way.

In Q3, K1x veteran and CPA, Danielle Tewes, was promoted to SVP of Strategic Accounts. Danielle said, “The path leading me to K1x has been so rewarding. I’ve personally benefited from using these products and I continue to feel energized by the innovative drive of our entire team across all departments to solve for a better way.” With CPAs and long-time financial services professional throughout its product team and client-facing staff, Danielle’s appointment reinforces K1x tax compliance and accounting expertise—essential for the success of tax transformation inside our clients’ complex organizations.

Partners

 

In 2023, K1x continued building out the Digital K-1 Ecosystem TM with new partnerships across tax filing and compliance software, alternate investment platforms, and business process outsourcers, including Canoe, Sovos, Arch, Thomson Reuters, Mirador, and Wolters Kluwer. These software and service providers work hand in hand with K1x to deliver straight-through, low-touch K-1 processing for our mutual clients.

K1x also demonstrated material advancement of its API strategy by continuing to support seamless connectivity to Thomson Reuters while adding new partner integrations and joining the Wolters Kluwer CCH Marketplace.

Building on what we started

 

Looking back at 2023, K1x CEO, John LaMancuso said, “I could not be prouder of this team. While revenue growth is always exciting, what it represents is the combined efforts of K1x’ers to build a fantastic company with amazing products and stellar client service. You can count on us to continue shaking up analog tax compliance in the alternative investment space, and unlocking the power of digitized data distribution.

About K1x, Inc.

K1x is the leading data distribution platform for alternative investments. The fintech company’s AI-powered SaaS solution digitizes and distributes data seamlessly–connecting investors, advisors, tax software, portals, accounting firms, IRS and state taxing authorities–simplifying complex processes, accelerating filings, reducing costs, and delivering greater control, transparency, and accessibility. K1x is trusted by more than 8000 organizations including 31 of 100 largest institutional investors in the US, 15 of the top 25 accounting firms, 8 of the top 100 private foundations, 26 of the top 100 university endowments, and 7 of the top 40 health systems. Visit us at K1x.io and follow us on LinkedIn.

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