Layer Secures $6.6M in Seed Funding to Revolutionize SMB Accounting

Layer, a pioneering embedded accounting platform tailored for small and medium-sized businesses (SMBs), has successfully raised $6.6 million in seed funding. This significant financial boost was led by Emergence Capital, with contributions from Better Tomorrow Ventures (BTV). The investment is set to propel Layer's innovative approach to integrating accounting functionalities directly into the software platforms SMBs utilize daily, thereby streamlining their financial operations.

The digital transformation wave has seen SMBs increasingly adopt industry-specific software for managing payments, customer interactions, and payroll. However, accounting processes have remained largely manual and disjointed, creating inefficiencies. Layer addresses this gap by embedding accounting and bookkeeping services into popular SMB software platforms such as Moxie, Nav, Dripos, Duet, Carry, and Reeva. This integration allows SMBs to access real-time financial insights within their existing tools, eliminating the need for cumbersome spreadsheets or external accounting services.

Justin Meretab, CEO and co-founder of Layer, emphasized the platform's value in simplifying financial management for SMBs. "Layer makes accounting a seamless part of SMBs’ daily workflows and takes bookkeeping off their plate — giving owners financial clarity and valuable time back to focus on running their businesses," Meretab stated. The platform's AI-powered bookkeeping service automates transaction categorization and recording, delivering reconciled financial reports monthly. Additionally, SMBs can interact with an AI-supported bookkeeper within their software, combining automation with expert oversight to halve bookkeeping costs and accelerate book closing by three times.

Kevin Spain, General Partner at Emergence Capital, highlighted Layer's potential to transform the SMB accounting landscape. "Layer is redefining accounting and bookkeeping for small businesses. It’s a big market that’s traditionally been underserved," Spain remarked. The platform's growth is evident, with a quadrupled SMB platform customer base over the past year and support for over 30,000 SMBs. Notably, more than 25% of SMB users on platforms like Moxie and Nav have adopted Layer's embedded accounting solutions.

The fresh capital will enable Layer to venture into new SMB verticals and refine its AI-powered bookkeeping platform to cater to industry-specific needs. Furthermore, the company plans to expand its team, focusing on engineering and go-to-market roles, to sustain its momentum and broaden its impact on the SMB sector.