- Layer has raised $2.3 million in pre-seed funding for its embedded accounting solution.
- The round was led by Better Tomorrow Ventures, with participation from executives at Square, Plaid, Unit, Check, and other SMB software companies.
- Layer will use the investment to expand its headcount across engineering and business operations.
Embedded accounting player Layer raised $2.3 million in a pre-seed round of funding today. The funds mark the first investment round the San Francisco-based company has seen since it was founded last March.
Better Tomorrow Ventures led the round, which also saw participation from executives at Square, Plaid, Unit, Check, and other SMB software companies.
Layer aims to simplify financial management for small businesses by enabling software companies– such as point-of-sale systems, neo-banks, and other software companies catering to small businesses– to embed accounting and bookkeeping solutions directly within their own platforms. This eliminates the need for small businesses to import data between their accounting software, such as Quickbooks, and the small business software provider. Because Layer allows software providers to combine their own data with data from customers’ external financial accounts, it helps offer the customers a more complete picture of their accounting.
“A common burden small businesses face today is keeping their accounting software in sync with their operations,” said Layer Co-founder and CEO Justin Meretab. “We believe our platform will now give SMBs a better solution for their accounting needs by embedding it into systems they use daily. Small businesses already have so much on their plate running and growing their operations, and accounting shouldn’t be another burden.”
Layer makes it possible for software companies to embed Layer through its API and pre-built Javascript UI components. The company will use the funding to expand its headcount across engineering and business operations.
“Accounting and bookkeeping are two of the biggest pain points small business owners face, and yet the existing products in the market are intimidating and can be time-consuming,” said Better Tomorrow Ventures Principal Nihar Bobba. “There are few products in the market that truly address these issues, which is why we’re excited to join Justin and Daniel in their journey to build and provide a powerful embedded accounting platform that enables all sorts of companies to solve the accounting needs of their customers.”