mika, a Berlin-based artificial intelligence startup, has closed a €6 million seed funding round to expand its platform that automates accounting, tax compliance and administrative tasks for small and medium-sized enterprises in Germany.
The round was led by Smedvig Ventures, with participation from Wecken & Cie. (Care4 AG), Keen Venture Partners, and Dutch Founders Fund. The financing also attracted prominent angel investors, including Dennis Bemmann, Michael Brehm from studiVZ, Johannes Ditterich from limango, and Martina Pfeifer of encourageventures.
Tackling Regulatory Barriers
The startup’s platform targets a specific pain point in Germany’s regulatory environment: the assumption that new business founders require professional tax advice before launching operations. Agnieszka Walorska, mika’s founder and CEO, described this expectation as a fundamental barrier to entrepreneurship.
“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,” Walorska stated.
Expanding the Platform
The freshly raised capital will support mika’s growth trajectory and fuel further development of its AI-native financial operating system. The platform currently handles bookkeeping automation, VAT return preparation, and tax filing processes—functions that traditionally require external professional services.
By automating these functions, mika aims to reduce costs and administrative friction for German SMEs, which have historically faced significant compliance overhead compared to their counterparts in other European jurisdictions.
Broader Ecosystem Implications
The funding round reflects growing investor confidence in fintech solutions targeting regulatory compliance automation across Europe. Germany’s complex tax and accounting requirements have spawned numerous digital finance startups in recent years, with founders increasingly recognizing that automation can democratize access to financial management tools.
The involvement of both institutional investors like Smedvig Ventures and experienced entrepreneurs in mika’s cap table suggests confidence in the company’s approach to one of Germany’s most pressing SME challenges. As European regulators continue tightening reporting requirements across jurisdictions, demand for AI-driven compliance solutions is expected to accelerate.
mika’s seed round demonstrates that European founders are increasingly willing to invest in solving sector-specific regulatory problems—particularly in markets like Germany where administrative requirements create measurable friction for business formation and growth.