Our Investment in FlexPoint

We’ve been talking about digital transformation for decades, but it’s taken on new meaning in recent years, especially for SMBs. Several key factors are at play: the surge of vertical SaaS and “AI for X” applications, rising online fraud, and the emergence of a digitally native generation of business leaders and customers. We’ve reached an inflection point where digital transformation has shifted from a buzzword to an existential necessity.

Managed Service Providers (“MSPs”) are the unsung heroes of this moment. SMBs globally are increasingly working with MSPs to keep up with the accelerated pace of digital adoption. These firms have evolved well beyond “IT guys” into trusted, strategic partners that provide mission-critical services while acting as the outsourced CIO for their clients.

Ironically, MSPs face their own technology challenges. Legacy solutions force manual processes, offer limited automation, and lack modern integrations. The MSP’s back office bears the brunt of this burden, with countless hours spent on invoicing, collections, reconciliation, and even dealing with paper checks. Payment cycles are slow, creating suboptimal cash flows. These dynamics hinder potential growth, diverting time away from clients and capital away from investment.

FlexPoint launched in 2023 to solve these problems, starting with modern digital payment solutions purpose-built for MSPs and their clients. FlexPoint serves as critical “glue” infrastructure, connecting vertical MSP platforms with horizontal back-office software. MSPs leverage FlexPoint’s full suite of Accounts Receivable automation tools and financing solutions to enhance operational efficiency and grow revenue. Clients of MSPs use FlexPoint’s Accounts Payable solution to easily set up autopay, securely save payment methods, and schedule payments. 

Earlier this year, we led FlexPoint’s Series A financing, alongside existing investors Techstars (a Foundry partner fund and portfolio company), Haymaker Ventures, Far Out VC, and Garuda Ventures. FlexPoint’s value proposition of seamlessly connecting disparate systems to automate and optimize crucial workflows for the back office is shared with several past and present Foundry portfolio companies, including AvidXChange (NASDAQ: AVDX) and Wholesail.

Techstars introduced us to the FlexPoint team, which participated in the Techstars Boulder accelerator in 2022. We were immediately drawn to this high-velocity, mission-driven team that is deeply obsessed with providing simple yet effective solutions for its customers. Furthermore, the dual-sided approach to serving both MSPs and the businesses they serve creates a compelling network effect and distribution advantage to support FlexPoint’s long-term vision of building the leading back office platform for SMBs.

FlexPoint was founded by Victor Lopez and Sam Kushner, who bring deep domain expertise from their prior roles at Blue Owl Capital, where they served the MSP market. They founded FlexPoint with the belief that MSPs represent the gateway to $2 trillion in SMB technology spend. Their mission is to build the largest network of partner-led payments to power that economy. We’re thrilled to partner with this team on their journey to serve and empower millions of small and medium businesses worldwide.