Layer, a pioneering embedded accounting platform tailored for small and medium-sized businesses (SMBs), has successfully raised $6.6 million in seed funding. This financial milestone was led by Emergence Capital, with contributions from Better Tomorrow Ventures (BTV). The infusion of capital is set to propel Layer’s initiative to embed accounting functionalities directly into the software platforms SMBs utilize for their daily operations, thereby streamlining their financial management processes.

The digital transformation wave has seen SMBs increasingly adopt industry-specific software platforms for managing payments, customer communications, and payroll. However, accounting processes have remained largely manual and disjointed, creating a significant pain point for many businesses. Layer addresses this challenge by enabling SMB software platforms, including Moxie, Nav, Dripos, Duet, Carry, and Reeva, to integrate accounting and bookkeeping services directly into their products. This integration offers SMBs a real-time overview of their finances within the tools they already use, eliminating the need for multiple systems or external services.

Justin Meretab, CEO and co-founder of Layer, emphasized the platform’s role 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 by month-end. Additionally, SMBs can interact with an AI-supported bookkeeper within their existing software platforms, combining automation with expert oversight to halve bookkeeping costs and accelerate book closing by three times.

Kevin Spain, General Partner at Emergence Capital, highlighted the transformative potential of Layer’s solution. ‘Layer is redefining accounting and bookkeeping for small businesses. It’s a big market that’s traditionally been underserved,’ Spain remarked. The platform’s innovative approach not only simplifies financial management but also revolutionizes how SMBs operate and comprehend their business finances.

Over the past year, Layer has significantly expanded its reach, quadrupling its SMB platform customer base and now supporting over 30,000 SMBs. Platforms like Moxie and Nav have reported rapid adoption rates, with more than 25% of their SMB users embracing embedded accounting and bookkeeping services. With the new funding, Layer aims to extend its services to additional SMB verticals, enhance its AI-powered bookkeeping platform to cater to industry-specific needs, and expand its team in engineering and go-to-market roles.

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