Berlin-based AI startup mika has raised €6 million in seed funding to expand its financial operating system for SMEs, automating bookkeeping and tax filings. The round was led by Smedvig Ventures, with participation from several notable investors.
TL;DR
- mika raises €6M seed round to grow its AI-native financial operating system for German SMEs.
- The platform automates bookkeeping, VAT returns, annual accounts, and tax filings using AI models and accounting rules.
- mika aims to reduce SMEs' dependency on tax advisers, making it easier for small businesses to manage their finances.
What happened
mika, a Berlin-based vertical AI startup, has secured €6 million in seed funding. The round was led by pan-European investor Smedvig Ventures, with participation from Basel-based family office Wecken & Cie. (Care4 AG), and several angel investors, including Dennis Bemmann, Michael Brehm, Johannes Ditterich, and Martina Pfeifer. Existing investors Keen Venture Partners and Dutch Founders Fund also increased their stakes.
The funding will support the growth of mika's AI-native financial operating system, which automates bookkeeping, VAT returns, annual accounts, and tax filings for SMEs in Germany. The platform uses AI models and accounting rules to categorize transactions, record them, and explain individual entries to users. Trained accountants at mika review the results and intervene when necessary.
mika's platform can also explain correspondence from tax authorities and answer questions about company accounts and finances. Users can query their financial information through mika or via the Model Context Protocol (MCP) using assistants such as ChatGPT or Claude. The company has seen significant growth, with around 400 GmbHs and UGs using its platform at the beginning of the year, compared with over 750 today.
Why it matters
mika's AI-native financial operating system aims to simplify accounting and tax processes for SMEs, reducing their dependency on tax advisers. This can make it easier for small businesses to manage their finances and comply with tax regulations, leveling the playing field for entrepreneurs from different backgrounds.
The platform's ability to integrate with popular AI assistants like ChatGPT and Claude through the Model Context Protocol (MCP) makes it more accessible and user-friendly. This can help SMEs save time and resources, allowing them to focus on their core business activities.
For investors, mika's growth potential is significant, given the large number of small incorporated businesses in Germany. The startup's ability to attract notable investors and increase its customer base demonstrates its strong market potential and the need for its services.
Key facts
- mika raises €6 million in seed funding led by Smedvig Ventures.
- The platform automates bookkeeping, VAT returns, annual accounts, and tax filings for SMEs in Germany.
- mika uses AI models and accounting rules to categorize transactions and explain entries to users.
- Trained accountants at mika review the results and intervene when necessary.
- The platform can explain correspondence from tax authorities and answer questions about company accounts and finances.
- Users can query their financial information through mika or via the Model Context Protocol (MCP) using assistants such as ChatGPT or Claude.
- mika has seen significant growth, with around 400 GmbHs and UGs using its platform at the beginning of the year, compared with over 750 today.
- The funding will support the growth of mika's platform and further develop its features.
Context
Germany has almost one million small incorporated businesses, most of them GmbHs and UGs, which are required to maintain accounts and submit tax filings. While company management can theoretically handle these processes themselves, the complexity of tax rules and the potential consequences of errors mean many small businesses rely on tax advisers or firms.
mika's AI-native financial operating system is designed to address this challenge by automating bookkeeping and tax filings, making it easier for SMEs to manage their finances and comply with tax regulations. The platform's ability to integrate with popular AI assistants through the Model Context Protocol (MCP) makes it more accessible and user-friendly.
The startup's growth potential is significant, given the large number of small incorporated businesses in Germany. mika's ability to attract notable investors and increase its customer base demonstrates its strong market potential and the need for its services.