mika, a Berlin-based AI startup, has raised €6 million in Seed funding to grow its business and further develop its platform.
The company is building an AI-powered alternative to traditional tax firms for small German companies, including GmbHs and UGs. Its platform is designed to help these businesses manage their tax and financial needs more efficiently.
The funding round was led by Smedvig Ventures. Other investors included Swiss family office Wecken & Cie. (Care4 AG), as well as Dennis Bemmann and Michael Brehm, co-founders of studiVZ. Johannes Ditterich, founder of limango, and Martina Pfeifer of encourageventures also participated.
Freddie Kalfayan, Principal at Smedvig Ventures, said, “Nowhere else in Europe is accounting and tax as demanding or costly for small businesses as in Germany, where the two are so tightly linked that a single mistake carries straight through to the tax bill. It is the reason big international players never gained a foothold here, and why SMEs were left with no real alternative. mika is the first to build for this reality instead of around it, and its customers demonstrate some of the strongest enthusiasm we have seen across our portfolio.”
mika was founded in 2022 and went through a major change in 2024 under new management. The company is now led by Agnieszka Walorska, founder and CEO, along with Luke Linnekuhle, CFO, and Henry Müssemann, CTO.
Instead of simply putting traditional tax services online, mika is building its platform from the ground up using AI. The company aims to create an AI-powered financial operating system for small and medium-sized businesses (SMEs).
For small German companies such as GmbHs and UGs, mika handles key financial tasks. These include bookkeeping, VAT returns, annual accounts and tax filings, helping businesses manage their accounting and tax work in one place.
“The moment you start a GmbH in Germany, you’re told you need a tax adviser. It goes so far that some founders think it’s a legal requirement. To me, it’s obvious that this cannot be how it works. At mika, we use AI to tear down that barrier, so that your bank balance or the family you were born into no longer decides who gets to start a company,” said Walorska.
mika has built its own AI-powered general ledger specifically for German accounting. The system can read and understand financial documents such as receipts and payment records.
The platform uses different AI models depending on the task. These models work with the accounting knowledge and rules developed by mika to process financial information accurately.
mika’s AI can categorise and record transactions and explain each entry to users, often without human help. However, trained in-house accountants review the results and step in when a task requires human expertise.
