Wave Accounting acquired $5 million in a Series A financing led by VC firm Charles River Ventures. OMERS Ventures also participated in the round. Wave develops accounting software for small businesses.
Wave Accounting Raises $5 million in Series A Financing
TORONTO, ONTARIO–( October 14, 2011) – Wave Accounting Inc. today announced the closing of its Series A financing round, led by Charles River Ventures (CRV), with the participation of OMERS Ventures. The $5 million in financing allows Wave to continue developing its free online accounting software for small businesses and marketing it internationally.
“We’re very pleased to have the participation of Charles River Ventures and OMERS Ventures in this round,” says Kirk Simpson, president and CEO of Wave. “These organizations bring more than just capital to the table: The expertise and insight from CRV and OMERS will be invaluable as we continue to build Wave.”
Wave is already the fastest-growing online accounting application for small businesses. Wave eliminates manual data entry by importing transactions automatically from a user’s bank account or electronic statement, and then applies smart technology to make accounting fast and easy. Features like these have led Wave to sign up almost 75,000 small businesses in 198 countries around the world since its launch less than 11 months ago.
Wave is 100% free for its customers, generating revenue by offering sophisticated, ultra-targeted advertising and group-buying opportunities instead of charging its end users expensive subscription fees. American Express, Dell and Grand & Toy are among several dozen advertising partners to date.
“We believe in the vision of the Wave management team, and are confident that they are well positioned to execute their ambitious plans,” says Devdutt Yellurkar, a partner at CRV. “We see great potential for immediate and long-term growth with Wave, on the strength of their technology and innovative business model.”
Wave’s immediate plans include ongoing application development, as well as the launch of a complementary payroll application later this year.
“OMERS Ventures is pleased to continue its association with Wave,” says Peter Carrescia, Managing Director at OMERS Ventures, who participated in Wave’s seed financing round in Spring 2011. “The company’s traction in less than a year gives us tremendous confidence in Wave’s future growth not just in North America but globally.”
About Wave Accounting
Based in Toronto, Canada, WaveAccounting.com currently tracks almost $2.5 billion of small business income and spending for nearly 75,000 customers around the world. Wave focuses on small businesses with 9 employees or less, offering them a real accounting tool with unlimited invoicing and expense tracking, accountant-friendly tools and reports, personal finance and more — all completely free.
About Charles River Ventures
Founded in 1970, Charles River Ventures is one of the oldest and most successful early-stage venture capital firms in the U.S., with approximately $2.1 billion under management. CRV is dedicated to helping exceptional entrepreneurs turn their ideas into the next category leaders in high-growth technology and media sectors. Over the past 10 years, CRV funds have been ranked among the industry’s top performers. CRV has offices in Boston, MA and Menlo Park, CA. For more information visit crv.com.
About OMERS Ventures
OMERS Ventures is the venture capital investment arm of OMERS, one of Canada’s largest pension funds with over $53 billion in net assets. As both an institutional angel investor and a later-stage investor, OMERS Ventures is looking for successful companies with significant growth potential and market opportunities. We are seeking like-minded partners with a shared vision of building a vibrant and successful knowledge economy. For more information please visit omersventures.com
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