FlowFi, a startup making a market of finance specialists for entrepreneurs, closed on $9 million in seed funding.
Blumberg Capital led the funding and was joined by a gaggle of traders together with Parade Ventures, Differential Ventures, Precursor Ventures, Particular Ventures, 14 Peaks Capital and Cooley LLP.
Nate Cavanaugh and co-founder J.J. Record launched the corporate in 2021 to automate accounting capabilities for founders. Previous to that, Cavanaugh based Brainbase, which was later acquired by Constellation Software program in 2022. Record, an investor, was Cavanaugh’s first test into Brainbase.
Entry to vital accounting metrics, in an comprehensible approach, was one thing Cavanaugh himself was having difficulties with as a founder.
“I used to be making an attempt to arrange for board conferences and put together financials for our traders, and simply actually pissed off with being a founder with out a finance background and making an attempt to get a pulse on what was occurring within the firm in actual time,” Cavanaugh instructed TechCrunch.
FlowFi’s chat perform. Picture Credit: FlowFi
He then reached out to Record in regards to the concept. Record additionally stated accounting help was one thing most of the firms in his portfolio constantly requested. Nevertheless, the obtainable options “didn’t essentially match what entrepreneurs usually needed,” he stated. Record preferred Cavanaugh’s answer a lot, he joined him at FlowFi.
FlowFi combines know-how with monetary specialists, together with chief monetary officers, accountants and tax specialists from such firms like PayPal, Netflix, Headspace and UNREAL Manufacturers. It then goes past conventional bookkeeping to point out founders important non-GAAP monetary metrics, comparable to month-to-month and annual recurring income, gross margin traits and vendor expenditure traits.
Practically three years later, the corporate has greater than 100 clients and is producing hundreds of thousands in annual recurring income, Cavanaugh stated. FlowFi additionally permits finance professionals to construct unbiased companies.
Accounting software program is perhaps a bit boring, however as extra startups come to fruition, it’s an space enterprise capitalists are loving proper now. We noticed firms like Lastly and Indy not too long ago announce new funding, whereas Pennylane turned a unicorn.
FlowFi intends to deploy the brand new capital into R&D to proceed know-how improvement in order that clients can combine their accounting programs into FlowFi. It’s also creating extra methods for founders to know their key efficiency indicators and work with the monetary specialists.
The opposite facet is to construct synthetic intelligence-powered instruments to automate capabilities accountants continually do, like categorizing transactions. As well as, the corporate plans to spend money on gross sales and advertising and marketing.
“We’re our personal buyer as properly, so we really feel now we have a very good deal with on what’s coming across the nook,” Record stated in an interview.
