Teal, an accounting infrastructure provider for vertical SaaS businesses, has announced an USD 8 million seed funding round.
The company was established in 2023, and it enables Vertical SaaS companies to create customised accounting suites for their SMB customers. The funding round was led by Torch Capital with contributions from Basis Set Ventures, General Advance, Dash Fund, and several angel investors, including executives from Service Titan, Plaid, Brex, Unit, and Gusto.
Teal provides APIs and tools that allow companies to develop their own accounting services for small business customers. These services include real-time cash flow analysis, product profitability insights, tax filing, and live bookkeeping support. According to the company press release, the demand for Embedded Finance solutions within Vertical SaaS is increasing, with accounting being a highly sought-after feature. Teal's software allows its clients to integrate accounting solutions into their platforms, creating a comprehensive financial hub that enhances user engagement with other financial services like payments, invoicing, and banking.
Torch Capital's officials highlighted the significant need for integrated accounting tools among the 30 million SMBs in the US. They noted that Teal's embedded approach and the team's expertise in financial software address longstanding challenges in the industry.
Teal offers a suite of ready-to-use tools enabling Vertical SaaS companies to launch accounting platforms within a few weeks. These tools include fully functional app code repositories and native data integrations with external sources such as Plaid.
Teal supports Vertical SaaS and SMB platform companies by helping them build comprehensive accounting solutions within their platforms. In essence, Teal strives to help companies provide small business customers with insights into real-time cash flow, profitability analysis, and overdue invoice tracking.
Teal's implementation model allows for quick deployment, and the company also offers white-label accounting services such as bookkeeping, tax filing, and CFO support.
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