The European economy is facing challenges, but a silver lining for enterprise startups is emerging. Those developing tools to help businesses manage their finances more efficiently are seeing a surge in demand.
AccountsIQ, a Dublin-based accounting technology company, has raised €60 million (approximately $65 million) to build “the finance function of the future” for mid-sized companies. The company’s cloud-based, automated services use AI to help accounting departments work faster and more intelligently.
Founded by accountants who recognized the need for better tools, AccountsIQ has been bootstrapped for nearly 20 years. The company has grown steadily, with a 30% annual compound growth rate (CAGR) over the past few years. It now has around 1,000 customers, covering 10,000 “entities” and 20,000 users.
AccountsIQ offers a range of digital accounting services, including accounts receivable and payable services, banking, business intelligence, forecasting, and budgeting. It also provides digital tax services and reporting, and integrates with various third-party services through its API. The platform is hosted on Azure and leverages Microsoft’s AI tools.
The company plans to use the funding to build more robotic process automation and AI-based features to speed up user workflows. Founder and CEO Tony Connolly said the investment will enable the company to “take the AccountsIQ product and service to the next level.”
The funding is significant not only because of its size but also because it comes at a time when startups are struggling to raise capital, especially in Ireland. A recent report found that startup funding in Ireland declined 48% in the first quarter of this year compared to a year ago.
Despite the challenges, accounting startups that focus on helping companies manage their finances more efficiently are still attracting attention. AccountsIQ’s primary investor, Axiom Equity, is partnering with the company to scale its AI-powered services.
While PennyLane, another accounting startup, raised $40 million at a valuation of over $1 billion, AccountsIQ is not disclosing its valuation. The company positions itself as a platform for businesses that will outgrow smaller solutions like Xero, QuickBooks, and Sage, and are looking for a more advanced solution as they scale.
