Wave Raises $10 Million to Fund ‘Ongoing Innovation’

Wave has closed a $10 million Series C investment.

The round saw participation from CRV, The Social+Capital Partnership, and Omers Ventures. This brings total investment in Wave to $35 million. The new funds are earmarked for “ongoing innovation and development of small business financial tools,” according to the Toronto-based company.

Today, 95% of businesses in North America have fewer than 10 employees. The cornerstone of Wave’s products is its  free, unlimited accounting software made for that market segment.

“We are huge believers in Wave’s vision of addressing the full breadth of small business finance needs,” says Devdutt Yellurkar, Partner at CRV. “Over the past three years, Wave has attracted over 1,000,000 small businesses to its seamlessly integrated accounting, invoicing and payroll system and continues to grow its customer base very fast.”

Wave’s customers are currently invoicing more than $6 billion per year.

“With the support of CRV, Social+Capital and OMERS Ventures, we can complete our vision of building a truly disruptive suite of tools for owners of small- and micro-businesses,” says Kirk Simpson, CEO of Wave. “Our strategy goes beyond solving a singular need: We’re taking the fear and pain out of all aspects of financial management, and helping our customers grow healthy, profitable businesses.”

Wave is signing up 10,000 businesses per week through organic channels.

“Wave has quietly built the most comprehensive finance software in the cloud for microbusinesses,” says Mamoon Hamid, General Partner at Social+Capital. “We agree with Wave, that small owner-operated businesses are different from the ‘SMBs’ and ‘SMEs’ targeted by traditional players, and we believe Wave is uniquely positioned to capitalize on this massively underserved market.”

Wave says it signs up 5,000 merchant accounts each month.

The Canadian company launched in 2010.