Acctual has raised $3.85 million in seed funding at a $15 million post-money valuation to assist crypto startups in managing their finances, stated the company’s co-founder and CEO, Atikh Bana, in an exclusive conversation with TechCrunch.
Describing Acctual, Bana mentioned, “At a high level, Acctual offers an improved method for handling invoices and bills in the crypto space. It operates as a genuine accounts payable automation process for digital assets.”
The funding round was co-led by Third Prime and IDEO, with participation from investors such as Alchemy Ventures, OrangeDAO, Soma Capital, Ryan Selkis (founder of Messari), Prajit Nanu (founder of Nium), and others. The raised capital is earmarked for achieving product-market fit, expanding the business, and growing the team.
Acctual was established by Bana, Issa Hassan, and Mohamedeq Mohamed. While Bana and Mohamed bring product development expertise from their tenure at Stripe, Hassan previously served as a software engineer at Google. Bana remarked, “One of our earliest concepts revolved around becoming the future of B2B payments.”
Bana emphasized that most Accounts Receivable (AR) and Accounts Payable (AP) automation processes cater to businesses in traditional finance rather than the crypto sector. He added, “We aspired to develop a solution within web3 to address the challenges and fragmentation, ultimately aiming to standardize and streamline financial operations in web3.”
While acknowledging the presence of several web3 finance-focused startups like Bitwave and Cryptio, Acctual aims to stand out by prioritizing “breadth over depth.” Bana explained, “By attempting to deliver an accounting product that encompasses accounts payable and receivable, you end up spreading yourself too thin. Hence, our focus is on conscientiously crafting a robust tool that addresses these pain points effectively.”
The founders devised an automated process for AR and AP of both fiat and digital assets to “guarantee timely payments, prevent overpayment or erroneous wallet usage, and thwart payment of malicious invoices,” according to Bana.
The beta phase of the financial operating system is currently undergoing global testing by “native web3 organizations,” spanning Series A startups to entities in need of a sound financial operations system.
Among its features, Acctual places emphasis on reducing fraud and spam by ensuring accurate vendor or crypto wallet address payments, overseeing invoice approval, and synchronizing crypto invoices and payments with Quickbooks or Zero.
Acctual’s overarching objective is to “enhance payment routing” and explore the potential of “building a global network of exchanges to facilitate the first and last miles for crypto transactions, akin to offramping,” said Bana. “Our focus lies in addressing the various intricacies that make digital assets akin to fiat currency – essentially, the overarching goal is to replicate the current practices but in a swifter and more efficient manner.”