mika Raises €6M Seed Funding for AI SME Accounting

Berlin-based mika has successfully closed a €6 million seed funding round, signaling strong investor confidence in its mission to revolutionize financial management for small and medium-sized enterprises (SMEs) in Germany. The round was spearheaded by prominent pan-European investor Smedvig Ventures, with significant participation from Basel-based family office Wecken & Cie. (Care4 AG). The investment also saw backing from notable angel investors including Dennis Bemmann and Michael Brehm (founders of studiVZ), Johannes Ditterich (limango), and Martina Pfeifer (encourageventures). Existing backers Keen Venture Partners and Dutch Founders Fund also bolstered their positions in this financing initiative.

Germany's SME sector, a critical engine of its economy, is characterized by nearly one million small incorporated businesses, many of which are GmbHs and UGs. These entities face substantial administrative burdens related to accounting and tax compliance. Historically, the complexity of German tax law has necessitated reliance on external tax advisors, a cost that can be prohibitive for nascent businesses. mika aims to dismantle this barrier by leveraging artificial intelligence to automate these intricate processes.

At the heart of mika's offering is an AI-native financial operating system designed to streamline ongoing bookkeeping, VAT returns, annual accounts, and tax filings. The platform's proprietary AI-native general ledger is specifically engineered for the nuances of German accounting standards. It intelligently processes receipts and payments, employing a suite of AI models tailored to specific tasks, augmented by a deep understanding of accounting rules and domain expertise cultivated by the mika team.

The AI system categorizes transactions, records them accurately, and provides users with clear explanations for each entry. To ensure accuracy and handle complex cases, mika integrates human oversight, with trained accountants reviewing AI-generated outputs. This hybrid approach ensures both efficiency and reliability. Furthermore, users can interact with their financial data through mika's interface or via external AI assistants like ChatGPT or Claude, using the Model Context Protocol (MCP). The platform can interpret communications from tax authorities and answer queries regarding a company's financial standing, though it currently directs users to its network of licensed tax advisors for personalized tax advice.

Agnieszka Walorska, founder and CEO of mika, articulated the company's vision: "The moment you start a GmbH in Germany, you're told you need a tax adviser. To me, it's obvious that this cannot be how it works. At mika, we use AI to tear down that barrier, so that your bank balance or the family you were born into no longer decides who gets to start a company." This sentiment underscores the startup's commitment to democratizing entrepreneurship.

mika has demonstrated significant traction since its inception. The platform has grown from approximately 400 GmbHs and UGs at the start of the year to over 750 active users today. Initially focusing on digital-first service businesses such as agencies and consultancies, mika has successfully broadened its appeal across sectors including SaaS, property, e-commerce, retail, and skilled trades. This expansion highlights the universal need for simplified financial operations among German SMEs.

The newly acquired capital will be instrumental in fueling mika's growth trajectory. The company plans to invest in expanding its team, enhancing its AI capabilities, and further developing its platform to offer an even more comprehensive suite of financial management tools. This strategic infusion of funds positions mika to capture a larger share of the German SME market, which represents a substantial opportunity within the broader European fintech and AI sectors.