FlowFi, a startup making a market of finance consultants for entrepreneurs, closed on $9 million in seed funding.

Blumberg Capital led the funding and was joined by a gaggle of buyers together with Parade Ventures, Differential Ventures, Precursor Ventures, Particular Ventures, 14 Peaks Capital and Cooley LLP.

Nate Cavanaugh and co-founder J.J. Checklist launched the corporate in 2021 to automate accounting features for founders. Previous to that, Cavanaugh based Brainbase, which was later acquired by Constellation Software program in 2022. Checklist, an investor, was Cavanaugh’s first verify into Brainbase.

Entry to vital accounting metrics, in an comprehensible means, was one thing Cavanaugh himself was having difficulties with as a founder.

“I used to be attempting to organize for board conferences and put together financials for our buyers, and simply actually annoyed with being a founder with out a finance background and attempting to get a pulse on what was occurring within the firm in actual time,” Cavanaugh instructed TechCrunch.

FlowFi’s chat operate. Picture Credit: FlowFi

He then reached out to Checklist in regards to the concept. Checklist additionally mentioned accounting help was one thing most of the firms in his portfolio constantly requested. Nevertheless, the accessible options “didn’t essentially match what entrepreneurs sometimes wished,” he mentioned. Checklist appreciated Cavanaugh’s answer a lot, he joined him at FlowFi.

FlowFi combines expertise with monetary consultants, together with chief monetary officers, accountants and tax consultants 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, equivalent 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 thousands and thousands in annual recurring income, Cavanaugh mentioned. FlowFi additionally allows 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 just lately announce new funding, whereas Pennylane turned a unicorn.

FlowFi intends to deploy the brand new capital into R&D to proceed expertise growth 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 consultants.

The opposite aspect is to construct synthetic intelligence-powered instruments to automate features accountants continuously do, like categorizing transactions. As well as, the corporate plans to put money into gross sales and advertising and marketing.

“We’re our personal buyer as properly, so we really feel now we have an excellent deal with on what’s coming across the nook,” Checklist mentioned in an interview.