The accounting platform Snyder has raised $2 million in a seed round aimed at attracting new clients and promoting the company’s visibility.
As TechCrunch reported on Friday (Aug. 27), the funding comes as Snyder Co-founders Michael Astreiko and Ilya Kisel wrap up their tenure at the seed money startup accelerator Y Combinator.
Snyder bills itself as an accounting platform for eCommerce services. The subscription SaaS offers an initial free trial, then allows users to buy additional services on its platform.
Originally founded as CloudBusiness in 2016, when it was focused on accounting automation and finance management for small to medium-sized businesses (SMBs), the company has since pivoted to helping commerce companies shift to omnichannel sales.
Speaking to TechCrunch, the founders said that shift can be “a huge pain” for SMBs as they wrestle with high fees and multiple payment systems.
Snyder assists companies by connecting sales channels such as Amazon, eBay and Shopify into a single platform that its customers can oversee with more seamless operations. Kisel noted that the company also identified a way to assist the accounting stream to enable the use of multiple payment methods.
Read more: Why The eCommerce Model Is More Accessible To SMBs Than They May Think
Astreiko spoke about the need for flexibility in eCommerce businesses in an interview with PYMNTS last year. “When you start to accept payments online, you need to understand that cash flow management works quite differently compared to a regular, offline way,” he said.
It’s particularly true for companies using third-party marketplace platforms like Amazon and Shopify to launch their eCommerce efforts. For example, Shopify will take a fee for every recorded transaction, but daily summaries reported to the seller’s bank won’t take that fee into account, Astreiko said.
“You cannot record only the net amount received,” he said. “You have to reflect both gross amounts and fees in your accounting. Otherwise, your books will be unbalanced and your P&L [profits and losses] report will be wrong.”