Accounting Startup Layer Raises $2.3 Million to Challenge QuickBooks with Automated Software

A startup promising a new approach to accounting software has raised $2.3 million to further develop its offering. Layer, which provides accounting features directly within business applications, hopes its embedded model will soon compete with longtime leader QuickBooks.

Founded in 2020, Layer wants to make financial record-keeping easier for companies by bringing basic accounting functions directly to where they work every day. Rather than leaving their main software to open a separate program, users can view cash flow, invoices, and other key data right within the applications they know and use already.

By eliminating the need to switch between different programs, Layer aims to streamline the bookkeeping process. The startup currently partners with several platforms like e-commerce sites and project management tools to deliver accounting capabilities on their platforms. Integrating further with various business software is a core part of Layer’s growth plans going forward.

With this Series A funding round led by Costanoa Ventures, Layer will concentrate on expanding its platform and partnership network. They will work to onboard more integrations that bring accounting capabilities to additional software popular with small and mid-sized businesses. The new capital will also allow Layer to bolster its engineering team as it scales up operations.

According to Layer, QuickBooks still dominates the accounting landscape despite being long outdated. By taking a fresh approach that’s native to the tools companies actually use daily, Layer hopes to modernize the experience and eventually compete with Intuit’s popular but aging software. With continued support, Layer aims to reshape how accounting is done for organizations of all sizes.