In a significant stride for financial technology, Danish startup Light has emerged from stealth mode with a $13 million seed funding round. Led by European venture capital firm Atomico, Light aims to transform the CFO tech stack, focusing on general ledger software enhanced by artificial intelligence. The Copenhagen-based company is co-founded by Jonathan Sanders (CEO) and Filip Kozjak (CTO), both of whom bring extensive experience in finance and tech sectors.
Transforming the CFO Tech Stack
Light’s mission is to bring AI-driven innovation to the general ledger, a cornerstone of enterprise resource planning (ERP) systems. General ledgers are critical for tracking a company’s financial health, recording every transaction in detail. However, Sanders argues that the current ERP solutions are outdated and cumbersome.
“Our mission is to be the first automated ledger for global companies,” Sanders told TechCrunch. “We believe CFOs and finance teams deserve the full benefits of AI, gaining the full knowledge and expertise of a large enterprise organization when it comes to accounting and taxes, something that they have been denied to date.”
Light’s platform integrates with existing CRM, HRM tools, banks, and communication channels like Microsoft Teams and Slack. The AI component automates tasks such as line-item coding and tax calculations, while also allowing finance teams to query financial data in plain English.
Addressing the Challenges of Legacy ERP Systems
Sanders’ vision for Light stems from his frustrations with traditional ERP systems during his tenure at Credit Suisse and Pleo. He recalls how slow and inefficient ERP systems were, often requiring extensive manual intervention and causing delays.
“I remember one time, I was working with the finance team on some report from the ERP system, and it took the page more than 20 seconds to load — I asked why the Wi-Fi was so slow,” Sanders said. “They said it wasn’t the Wi-Fi that was the problem, it was the product. I immediately knew something had to be done.”
Light’s approach contrasts sharply with legacy ERP giants like Oracle NetSuite, SAP ERP, and Microsoft Dynamics, as well as newer platforms like QuickBooks and Xero. By unbundling the ERP, Light focuses exclusively on general ledger tasks such as accounts receivable, accounts payable, bookkeeping, and VAT reporting.
A Modern Solution for Modern Companies
Light is designed for “multi-entity international companies” seeking a unified dashboard for global transactions. The platform is fully searchable and queryable using AI, offering a seamless experience for finance teams and other stakeholders.
“We’ve chosen to focus on the general ledger to build a clean and focused product — this is the hardest, and most important, problem to solve for modern finance teams,” Sanders said. “Modern companies use the best CRM, like Salesforce; and the best HR software, like Workday or Factorial. But there’s no global ledger that is unbundled from the ERP suite, so you are forced to implement a full-stack ERP with embedded CRM and HRM products you never use.”
Light’s user-friendly interface, reminiscent of Apple’s design philosophy, further distinguishes it from traditional ERP systems. It allows anyone with the right permissions to approve invoices, upload expenses, and query financial data effortlessly.
Expanding Globally from the Nordics
Founded in 2023, Light has quickly gained traction, particularly in the Nordic region. Its early customers include Worksome, Lenus, Famly, and Proxify. The company’s focus on enabling businesses to scale globally from day one aligns with the needs of companies in smaller European countries.
“In the Nordics, as well as in other smaller countries in Europe, companies have to be global from day one,” Sanders explained. “This means that as soon as you find commercial traction, you need to open legal entities in other countries and your financial backbone breaks. Our mission is to help these companies early on in their journey to go global and unshackle them from the burdens of existing legacy solutions.”
The seed round, led by Atomico, also saw participation from Cherry Ventures, Entrée Capital, Seedcamp, and notable angel investors like German soccer player Mario Götze. With this funding, Light is poised to expand its reach and further develop its AI-driven financial solutions.
Conclusion
From my point of view, Light represents a promising shift in the financial tech landscape. By addressing the inefficiencies of legacy ERP systems and focusing on AI-driven automation, Light is well-positioned to meet the needs of modern, globally-oriented companies. The platform’s user-friendly design and integration capabilities make it a compelling choice for finance teams looking to streamline their operations and leverage the power of AI.
As Light continues to grow and innovate, it will be interesting to see how it reshapes the CFO tech stack and challenges established ERP giants. The startup’s success could very well signal a broader trend towards specialized, AI-enhanced financial solutions in the enterprise market.
