Early Revolut backer invests in AI-focused finance software startup Light

Copenhagen-based startup Light is making waves in the European tech scene by securing $30 million in a Series A funding round, aimed at enhancing its AI-driven financial software solutions. Founded in 2022, Light specializes in automating key functions within finance teams, including accounting, bookkeeping, and financial reporting. The investment round was led by Balderton Capital, known for backing successful fintech companies like Revolut and GoCardless. Other investors included Atomico, Cherry Ventures, Seedcamp, Entrée Capital, and notable angel investors such as Thomas Wolf, co-founder of Hugging Face, and Charlie Songhurst, a board member at Meta. According to CEO and co-founder Jonathan Sanders, the funding will help the company strengthen its commercial operations. Light is expanding its footprint with a new office in London and plans for another in New York to cater to the growing demand in the U.S. market. Light is not alone in its mission to leverage AI for financial efficiency. Competitors like Pigment and Pennylane are also gaining traction, with Pigment raising $145 million and Pennylane securing €75 million, significantly increasing their valuations. Despite the competition, Light positions itself against established giants like Microsoft, Oracle, and SAP, which often provide cumbersome systems requiring extensive customization. Sanders pointed out that their target customers are fast-growing companies needing scalable solutions without the prolonged setup times associated with traditional software. Noteworthy clients of Light include Lovable, a Swedish AI company valued at $2 billion, and Sana Labs, which is being acquired by Workday for $1.1 billion. Sanders emphasizes the transformative potential of AI in finance, stating, "The future of numbers is text," suggesting that AI can automate processes like retrieving team allowances from complex company policies. Moving forward, Light aims to focus on large enterprises facing challenges with inefficient workflows. Sanders noted that no human team can constantly manage and update extensive policy documents effectively, showcasing the critical role of AI in modern finance management.