FlowFi, an entrepreneur-focused finance expert marketplace, raised $9 million in preliminary investment.
Parade Ventures, Differential Ventures, Precursor Ventures, Special Ventures, 14 Peaks Capital, and Cooley LLP joined Blumberg Capital in the investment.
Nate Cavanaugh and J.J. List founded the firm in 2021 to streamline founder accounting. Before that, Cavanaugh established Brainbase, which Constellation Software bought in 2022. Cavanaugh originally investigated Brainbase with the Investor List.
As a startup, Cavanaugh struggled to comprehend accounting metrics.
“I was trying to prepare for board meetings and prepare financials for our investors, and I was 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 told Eltrys.
He approached List about the notion. List also stated that several of his portfolio firms wanted accounting help. The offered options “didn’t necessarily fit what entrepreneurs typically wanted,” he added. List joined FlowFi because he admired Cavanaugh’s solution.
FlowFi combines technology with senior financial officers, accountants, and tax specialists from PayPal, Netflix, Headspace, and UNREAL Brands. Beyond standard accounting, it shows founders non-GAAP financial information such as monthly and yearly recurring revenue, gross margin trends, and vendor spending patterns.
Cavanaugh claimed the firm had over 100 clients and millions in yearly recurring income over three years later. FlowFi helps financial professionals start their own companies.
While accounting software may be dull, venture investors are loving it as more firms launch. Recently, Finally and Indy raised funds, and Pennylane became a unicorn.
FlowFi will use the additional funds in R&D to continue technological development for accounting system integration. It also gives entrepreneurs new methods to grasp KPIs and collaborate with financial specialists.
The second option is to automate accounting tasks like transaction categorization using AI. The corporation will also spend on marketing and sales.
List said in an interview, “We’re our own customers as well, so we feel we have a good handle on what’s coming around the corner.”
FlowFi raises first investment to educate innovators about finances.
