Bench and Shopify alumni invest $11 million CAD in Teal to create the Stripe for accounting

Vancouver-based Teal, founded by CEO Ian Crosby and design lead Adam Saint, has secured approximately $11 million CAD ($8 million USD) in seed funding to offer bookkeeping infrastructure to vertical SaaS businesses. Ian Crosby and Adam Saint, who are accounting software veterans, previously co-founded Bench Accounting in Vancouver and gained experience working with Ottawa-based e-commerce giant Shopify.

Teal aims to leverage their expertise and experience to streamline accounting processes for SaaS businesses.In a recent interview with BetaKit, Ian Crosby, the CEO of Teal, emphasized their in-depth understanding of the accounting requirements of small to medium-sized businesses (SMBs) based on their experience of working with over 10,000 SMBs at Bench. Crosby highlighted the importance of addressing the intricate details that are only learned through practical experience.

With the launch of Teal, Crosby and Adam Saint aim to complete the work they started at Bench, with Crosby expressing a sense of unfinished business and a determination to provide a more comprehensive solution to SMB accounting challenges.Ian Crosby reflected on the early days of co-founding Bench in 2011, noting that the concept of vertical SaaS businesses tailored to specific industries serving SMBs was not prevalent at that time.

He mentioned that Bench primarily focused on direct engagement with small businesses over the course of a decade but felt that they were not fully integrated into the ecosystem. Crosby described their approach as capturing the aftermath of SMBs experiencing accounting challenges rather than being deeply embedded in the process to provide comprehensive solutions.

Teal's founders, Ian Crosby and Adam Saint, have recognized a new opportunity with Teal to create what Crosby refers to as "the Stripe for accounting." This vision entails developing the necessary infrastructure for vertical SaaS companies to seamlessly integrate and provide accounting functionalities within their platforms. By aiming to become the go-to solution for accounting needs in the vertical SaaS industry, Teal seeks to revolutionize the way accounting services are offered and utilized by businesses in specific sectors.

Teal's seed funding round, which consisted entirely of equity and primary investments, was spearheaded by Torch Capital. The round also saw participation from prominent New York-based firms such as General Advance and Dash Fund, as well as Silicon Valley's Basis Set Ventures. The participation of undisclosed executives from renowned tech companies like Service Titan, Plaid, Brex, Unit, and Gusto in Teal's funding round underscores the significant support and interest from influential players within the industry. 

The participation of undisclosed executives from major tech companies in Teal's funding round serves to validate the vision and potential of Teal as a disruptive player in the accounting solutions space. This support from key figures in the tech sector not only underscores the confidence in Teal's innovative approach but also solidifies its position as a promising and influential entity within the industry. The backing of such prominent individuals further enhances Teal's credibility and sets the stage for its continued growth and success in revolutionizing accounting services for businesses.