FlexPoint Secures $12M Funding to Enhance Payment Solutions for Managed Service Providers
FlexPoint, a prominent player in the FinTech sector, has successfully raised $12 million in a Series A funding round, focusing on payments automation for managed service providers (MSPs) and their small to mid-sized business (SMB) clients. This significant investment was spearheaded by Foundry Group, with contributions from notable firms such as Haymaker Ventures, Garuda Ventures, Techstars, Far Out Ventures, and Cascade Seed Fund.
Key Highlights from FlexPoint’s Funding Journey
Since its inception in March 2023, FlexPoint has accumulated a total funding of $19.5 million. The newly acquired capital will be pivotal for:
- Accelerating product development
- Enhancing FlexPoint’s partner program
- Expanding its presence in the $2 trillion global SMB technology market
FlexPoint’s Impact on the SMB Technology Market
The company’s payment platform is designed to empower MSPs, who provide essential technology services to SMBs, by automating and streamlining financial transactions. FlexPoint aims to deepen its impact in a market where MSPs facilitate approximately 80% of all SMB technology spending.
Growth and Market Adoption
FlexPoint has demonstrated remarkable growth, with revenues increasing nearly fourfold year-over-year. Currently, the platform is trusted by over 40,000 businesses for managing their payments, indicating strong market adoption in a short timeframe.
Leadership Insights
Victor Lopez, CEO and co-founder of FlexPoint, stated, “The MSP market is the gateway to the $2 trillion global SMB technology market. 80% of all SMB technology spend is delivered by partners. Our mission at FlexPoint is to build the B2B payments platform that powers SMB technology spend through our network of MSP partners.”
Investor Perspectives
Jaclyn Freeman Hester, a partner at Foundry Group, expressed enthusiasm about the investment, stating, “FlexPoint is bringing modern payments software to an underserved segment of the market through a unique partner-led approach that creates a compelling distribution advantage. We’re thrilled to partner with this team of relentlessly focused executors.”
For further insights on the evolving landscape of FinTech and its impact on small businesses, explore our related articles.
