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 bunch 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. Listing 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. Listing, an investor, was Cavanaugh’s first verify into Brainbase.
Entry to essential accounting metrics, in an comprehensible approach, was one thing Cavanaugh himself was having difficulties with as a founder.
“I was trying to prepare for board meetings and prepare financials for our investors, and just really frustrated with being a founder without a finance background and trying to get a pulse on what was going on in the company in real time,” Cavanaugh advised TechCrunch.
FlowFi’s chat perform. Picture Credit: FlowFi
He then reached out to Listing concerning the concept. Listing additionally mentioned accounting help was one thing most of the corporations in his portfolio constantly requested. Nonetheless, the accessible options “didn’t necessarily fit what entrepreneurs typically wanted,” he mentioned. Listing favored Cavanaugh’s resolution a lot, he joined him at FlowFi.
FlowFi combines expertise with monetary specialists, together with chief monetary officers, accountants and tax specialists from such corporations like PayPal, Netflix, Headspace and UNREAL Manufacturers. It then goes past conventional bookkeeping to point out founders important non-GAAP monetary metrics, corresponding to month-to-month and annual recurring income, gross margin developments and vendor expenditure developments.
Practically three years later, the corporate has greater than 100 clients and is producing hundreds of thousands in annual recurring income, Cavanaugh mentioned. FlowFi additionally allows finance professionals to construct unbiased companies.
Accounting software program could be a bit boring, however as extra startups come to fruition, it’s an space enterprise capitalists are loving proper now. We noticed corporations like Finally and Indy not too long ago announce new funding, whereas Pennylane grew to become a unicorn.
FlowFi intends to deploy the brand new capital into R&D to proceed expertise improvement in order that clients can combine their accounting programs into FlowFi. Additionally it is creating extra methods for founders to grasp their key efficiency indicators and work with the monetary specialists.
The opposite facet is to construct synthetic intelligence-powered instruments to automate capabilities accountants continuously do, like categorizing transactions. As well as, the corporate plans to spend money on gross sales and advertising and marketing.
“We’re our own customer as well, so we feel we have a good handle on what’s coming around the corner,” Listing mentioned in an interview.
