Flex, a startup building AI-powered financial services, has closed a $70 million funding round led by Halo Fund. Halo Fund was founded by Ryan Smith, owner of the Utah Jazz, and Ryan Sweeney, a partner at Accel. The company did not formally disclose its valuation, but sources familiar with the deal say the three-year-old startup reached about $1.2 billion in this round.
To date, Flex has raised $180 million in venture capital and taken on $300 million in debt.
Focus on mid-market businesses
Flex targets mid-sized companies with annual revenues ranging from tens of millions to several hundred million dollars — firms that many traditional fintechs overlook and that are often served by regional banks. CEO Zaid Rahman said there are roughly 350,000–400,000 such businesses in the United States, which handle 40% of U.S. payrolls; globally, about three million similar firms account for roughly half of the world economy.
Unlike competitors that concentrate on a single area such as accounting or expense management, Flex integrates private lending, corporate and personal finance, and payments on a single platform rather than offering separate systems.
AI assistants and rapid growth
The platform includes AI-based assistants, including Beacon AI, which sends weekly, detailed financial overviews to company owners. Flex says it serves a few thousand customers, is growing at roughly four times year-over-year, and has revenue on the order of $100 million.
The new capital will be used for global expansion, marketing, and hiring: the current team of 110 employees could grow to more than 200 by the end of the year. Returning investors in the round include Portage Ventures and Crosslink Capital.
Flex Global: stablecoin-powered international transfers
Alongside the financing, Flex launched Flex Global, a service that uses stablecoins to enable near-instant international transfers to more than 100 countries. The offering also allows company owners to hold funds in 32 different currencies.
Lead image: illustration. Source: Getty Images.
