Toronto's Wave Accounting announced today the closing of its Series A financing round led by Charles River Ventures (CRV) with the participation of OMERS Ventures.
The $5 Million financing allows Wave accounting to continue developing its free online accounting software for small businesses and marketing it internationally. Wave's immediate plans include ongoing application development, as well as the launch of a complementary payroll application later this year.
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.
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.
Wave has signed up almost 75,000 small businesses in 198 countries around the world since its launch less than 11 months ago.
Wave closed a $1.5 Million seed round led by OMERS through INKEF Capital in June 2011 and received $750k in Federal Government stimulus funding last month.