Tiny AI ERP startup Campfire is winning so many startups from NetSuite, Accel led a $35M Series A

AI-driven accounting startup Campfire has made headlines with its recent $35 million Series A funding round, spearheaded by Accel and supported by Foundation Capital, Y Combinator, Capital49, and various angel investors, including Mercury's CFO, Dan Kang. Founded by John Glasgow, Campfire has already attracted customers from larger competitors like NetSuite, with reports of companies with over 100 employees switching to Campfire within just nine months of its inception. Notable clients that have transitioned from NetSuite include wealth management platform Advisor360, construction software firm Rhumbix, and customer experience provider Fooji. Glasgow, who has extensive experience in finance with a career spanning over 15 years at companies like Fidelity and Union Square Advisors, attended Y Combinator in the summer of 2023. His unique background stood out among younger founders at the program, leading to humorous moments, such as being the most sought-after participant during a bingo event focused on finding parents. Inspired by his previous work at Invoice2go, which was acquired by Bill.com for approximately $625 million, Glasgow launched Campfire in 2023 to revolutionize outdated enterprise resource planning (ERP) software like NetSuite. Campfire leverages large language models (LLMs) to automate tedious financial processes, including the reconciliation of AWS cloud bills and the generation of cash flow analyses. Remarkably, one client reported reducing their monthly financial closing process from 15 days to just three days after switching to Campfire, highlighting the efficiency gains possible with the new platform. Campfire's connections through Y Combinator have enabled it to attract tech startups such as Sierra AI and Replo as customers. Additionally, the company has secured Mercury, a unicorn fintech startup, as a client, with its CFO also investing in the startup. Though still a small player compared to Oracle's billion-dollar NetSuite, Campfire's rapid growth to approximately 100 customers and its current team of 12 employees reflect its competitive potential. Accel's John Locke, who previously invested in Invoice2go, expressed his astonishment at the trust larger businesses placed in a startup of this size. Seeing the immediate traction in a $56 billion ERP software market projected for 2024, Locke decided to lead the funding round, advocating for a substantial investment to fuel Campfire’s ambitions. In a market ripe for innovation, Campfire's journey is just beginning, and its founders are committed to reshaping the future of accounting software.