Kirk Simpson and co-founder James Lochrie started Wave Accounting in 2009-2010, during a very different time in the Canadian tech scene.

The Early Struggle

The early fundraising was brutal. Canadian venture capital wasn't experienced with high-growth tech startups. "It was a real grind getting that first cash influx into the business," Kirk recalls.

The Freemium Model

Wave's model of giving away the software for free was controversial. While it had downsides for monetization, it was "an incredible marketing machine that would blow away VCs' expectations of onboarding small business customers."

The Rollercoaster

• 2011-2012: Riding a rocket ship of growth
• 2013: A potential acquisition by Xero fell apart at the last minute
• 2015: "Ten days from bankruptcy" before finding a sustainable model

The Near-Death Experience

"I remember getting the news right at the end that the board had blocked [the Xero acquisition]. I happened to be with my family at my parents' cottage, probably the one time in the entire journey where I was almost catatonic, sitting in a rocking chair."

The Turnaround

After surviving near-bankruptcy, Wave figured out how to monetize through payments processing and payroll services while keeping core accounting free.

The Exit

In 2019, H&R Block acquired Wave for $405 million, validating the freemium model for SMB software.

• Founded: 2009
• Exit: $405M (2019)
• Total funding raised: $70M+
• Near-bankruptcy: 10 days from running out of cash