Is Thomson Reuters’ $150M Fund About to Transform Tax and Accounting Tech?

Thomson Reuters just doubled down on tech innovation with a fresh $150 million corporate venture fund and this isn’t just another corporate flex. This move is a direct play to redefine tax, accounting, and compliance technology at a time when automation and AI are shaking up the industry. If you’re thinking, “Didn’t they already do this?”, you’re right. But this time, they’re scaling up in a big way.

TR’s First Fund & Why It Mattered

Back in 2021, Thomson Reuters launched a $100 million venture fund, strategically investing in startups pioneering generative AI solutions for legal and financial services. And it wasn’t just for show. A standout investment was Materia, an AI-driven company focused on automation for tax, audit, and accounting professionals. TR later acquired Materia, integrating its AI capabilities into its software suite making tax and accounting processes faster, smarter and more efficient. Now, with Fund 2, they’re upping the ante.

So, What’s Different About This $150M Fund?

Unlike the first round, which broadly focused on AI-driven solutions, this time TR is zeroing in on accounting, tax, and compliance tech. According to Tamara Steffens, Managing Director of Thomson Reuters Ventures, this is a “pivotal component of our ‘Build, Partner, Buy’ strategy.” “Through this larger fund, we’re expanding our ability to identify and support companies at the forefront of change,” Steffens said. “We are committed to fostering innovation that directly impacts the professional markets we serve.” This means TR is actively scouting Series A startups and early-stage tech firms that are on the cutting edge of automation, compliance, and financial intelligence. But why now?

Why TR is Betting on This Now

• Regulation is Getting Messier: Global tax laws are changing faster than ever, making compliance a nightmare for businesses. AI-driven tax tech can provide real-time regulatory updates and automated tax filings reducing errors and penalties.
• Automation is No Longer Optional: Tax and accounting firms are under increasing pressure to automate repetitive tasks from data reconciliation to fraud detection—so they can focus on strategic advisory.
• Competition is Heating Up: TR isn’t the only one in this space. Intuit, Wolters Kluwer, and fintech disruptors are pushing hard into AI-driven financial services. Staying ahead means investing big and early.

How This Will Change the Industry

This fund isn’t just about writing checks, it’s about reshaping the tax and accounting industry with smarter tech.

• AI-Powered Tax Prep: AI-driven tax software will analyze financials, optimize deductions, and flag compliance risks—all before an auditor even looks at them. “Our focus is on AI-driven solutions that can significantly reduce the complexity of tax preparation,” said Steffens. “We’re working to scale automation tools that remove tedious work for professionals and give them deeper insights faster.”
• Compliance Tracking: New tools could automatically monitor and update global tax regulations, ensuring compliance without human intervention. For example, startups developing AI-driven compliance software can track tax law changes in multiple jurisdictions in real time—cutting down costly compliance errors and saving companies millions.
• Big Firms Get Bigger, Micro Firms Get Smarter: With AI-powered automation, larger firms will scale faster, while smaller firms can operate more efficiently without needing large teams.
• Legacy Software Faces Real Competition: TR’s investments could mean next-gen tax platforms will start challenging the dominance of traditional software—leading to faster innovation and better tools for accountants.

But It’s Not All Smooth Sailing

Even with all this potential, there are some serious challenges ahead.

• Adoption Resistance: Tax professionals aren’t exactly rushing to embrace AI-driven automation. Convincing firms to trust AI with compliance-heavy tasks will take time.
• Regulatory Hurdles: AI in tax compliance expects regulators to scrutinize these tools for accuracy, security, and potential biases.
• Startup Survival Rates: Not every startup backed by TR will succeed. Some will scale into industry leaders, while others may burn through cash before reaching profitability.

Smart Play or Just Another Bet?

This isn’t just a corporate PR stunt; it’s a strategic play to control the next wave of accounting and tax tech innovation. With AI, automation, and compliance tech evolving rapidly, TR’s investment could shape the tools professionals rely on for the next decade. “This investment strategy goes beyond financial returns. It’s about fostering innovation that empowers professionals and builds the future of work,” Steffens added. One thing’s for sure: The tax and accounting industry is about to change fast. Are you keeping up? Because if you’re not, you might just find yourself automated out of the loop.