Kick: OpenAI-backed startup transforms small business bookkeeping

What a self-driving bookkeeping tool looks like

Silicon Valley startup Kick has secured a $9 million seed round, attracting an impressive lineup of investors. The round was led by OpenAI's Startup Fund and General Catalyst, with participation from notable tech leaders including former Stripe executive Lachy Groom, ex-Venmo COO Michael Vaughan, and Adobe's Chief Product Officer Scott Belsky, etc.

The company's market performance has been equally compelling – since launching its waitlist last September, Kick has onboarded over 1,000 business clients and maintained a 50% monthly growth rate, while earning the title of "No.1 Fintech Product of the Week" on Product Hunt.

The small business challenge

The timing of Kick's emergence couldn't be more crucial for America's 35 million small businesses, which contribute over 40% of the country's GDP. These businesses face significant financial management challenges, with average annual accounting costs ranging from $8,000 to $15,000.

According to Intuit QuickBooks' 2023 report, 40% of business owners spend more than five hours weekly managing finances, while a quarter face IRS audits and fines due to filing errors. These challenges inspired CEO Conrad Wadowski's vision of "self-driving bookkeeping," aiming to free entrepreneurs to focus on growth rather than administrative tasks.

AI-powered innovation in action

At the heart of Kick's innovation is its sophisticated AI-powered platform, leveraging GPT-4's advanced language capabilities to transform traditional bookkeeping. The system delivers a comprehensive "self-driving" bookkeeping experience through several key innovations:

• Intelligent Transaction Categorization: Kick’s AI interprets non-standard transaction notes, invoices, and receipts, generating accurate classifications with minimal input from the user.

• Smart Report Generation: Instantly create cash flow statements and income statements ready to share with CPAs.

• Multi-Account Integration: Kick integrates seamlessly with both business and personal accounts and supports payment platforms like Stripe. It identifies business expenses automatically, helping users capture valuable tax deductions.

• Real-Time Tax Optimization: Kick goes beyond basic bookkeeping by recommending tax-deductible expenses and eliminating redundant transactions, saving users an average of $4,000 annually in taxes.

• Real-Time Income and Expense Insights: The dashboard provides a custom view of income sources and profitability drivers.

This comprehensive approach to financial management allows business owners to automate their bookkeeping processes while ensuring accuracy and compliance.

Breaking the price barrier

Kick's approach to pricing has been disruptive in the industry. The platform offers a freemium model where businesses spending under $25,000 annually can use the service at no cost. Paid plans starting at $35 monthly include unlimited account connections and team member access, making professional bookkeeping services accessible at roughly one-third the cost of traditional options.

This pricing strategy has contributed to Kick's rapid growth, with over 1,000 business clients onboarded since September and a consistent monthly growth rate of 50% over the past quarter.

Leadership and Future Vision

The company's strong foundation rests on its experienced leadership team. CEO Conrad Wadowski brings valuable insights from his success with Teachable, an online education platform he founded and sold for $250 million. CTO Adrian Ślipko contributes over a decade of full-stack development expertise, while the broader 32-member team combines specialized knowledge in machine learning, finance, and tax services.

With their early access to GPT-4 through the OpenAI partnership and recent funding, Kick is rapidly expanding its offerings.

The company plans to develop additional back-office automation tools, focusing on streamlining tasks like automated logins and subscription management. As OpenAI's flagship investment in FinTech, Kick aims to empower small business owners with enterprise-level financial solutions, supporting what Wadowski calls the "ownership economy."