Small business startup Wave Accounting has raised $12 million in its second round of funding, the company announced today.
Wave, which offers free accounting software for small companies, feels that managing “the books” is a complicated and dreaded task that isn’t any easier thanks to desktop accounting software.
“I experienced the pain first hand of trying to run your books and I really despise all those back office tasks,” said co-founder Kirk Simpson in an interview with VentureBeat. “[I wanted to] simplify the administrative tasks that small businesses despise.”
Simpson thinks high-end accounting software is so complicated that most business owners need to spend far too much time learning how to use it. He created Wave as a simpler solution that clueless business owners could use to manage their accounting.
“There’s a disconnect between small businesses owners who hate doing this and yet they are being asked to pay hundreds of dollars to pay for desktop and cloud [accounting] software,” said Simpson.
Competition in this space ranges from high-end offerings like Salesforce, Zoho, and NetSuite, to cheaper and free services from Kashoo and Outright. Wave bets on its completely free offering and super-simple design to help it stand out. Wave makes it money solely from advertising services to its customers.
Social+Capital Partnership led the $12 million round. Charles River Ventures and OMERS Ventures also contributed.
Wave Accounting is based in Toronto, Canada. The two-year old company has raised $19 million in funding in the last 18 months, since its launch.
Man with financial chart image via Shutterstock