A PricewaterhouseCoopers survey reports this week that $21 billion in venture capital funding was invested in US companies in the first nine months of this year. Here's the story of one accounting/bookkeeping company that snagged $12 million of it this week.

Virtual Growth, Incorporated is a pioneer in providing outsourced bookkeeping and accounting services to fast growing small and medium sized businesses. Virtual Growth works with Lawson Insight II software to provide an easy-to-use web-based customer interface that allows users to quickly pick up the system and work with minimal training. Venture capitalists like what they see in the outsourced accounting model and this week closed a $12 million round of funding to continue the growth and development of the company.

Virtual Growth was founded in 1995 and currently services approximately 50 small to medium sized business clients. With the additional funding, the company plans to expand its service nationwide in the first quarter of next year with a much more powerful array of tools for the small business owner.

Is this one more competitor to worry about, or is it a business model worth investigating?