Cash flow can make or break a small business; According to US Bank data, issues in this area account for 82 percent of small business failures.
Brightflow AI is injecting technology into this problem with its forecasting and analytics tools to help small businesses assess their cash flow and make data-driven decisions in real time. Brightflow has a capital loan program to help in times of volatility or high interest rates for traditional capital.
The San Francisco-based company’s cash flow calculator captures financial data from platforms like Shopify, Amazon, QuickBooks, Facebook and Google Ads and provides a real-time view of cash flow.
If this sounds familiar, you’re right that Brightflow isn’t alone in helping companies sell more online. For example, Bainbridge Growth, which announced $4 million in seed funding this week, is also providing data and analytics targeting e-commerce companies.
However, Brightflow co-founder and CEO Robbie Batal told TechCrunch that the company differentiates itself by focusing on the automation of financial services and distributing that information in a way that a business owner can understand.
Before starting Brightflow in 2019, Bhathal was the co-founder of hotel booking site Suiteness. He says his involvement in growing the company is actually what inspired him to start Brightflow with Jeffrey Priebe.
“The personal pain points were around how fast your business can grow, and specifically how difficult it is to manage accounting and finance and the future state,” Bhatal said. Also general access information. You’re trying to find the best places to get capital, through Y Combinator or accelerated capital markets, because I don’t make a lot of money.
The product seems to resonate with consumers. In the last year, Bhathal said that the company has grown 10x, received more than $60 million in growth capital from clients. During that time, 1,200 customer connections and more than 49,000 transactions are processed daily, with billions of dollars in revenue sent through the system.
To continue that momentum, the company recently closed a $15 million Series A round led by Hymaker Ventures, which included $100 million in debt financing from i80 Group. The new investment brings Brightflow’s total funding to approximately $20 million.
Capital infusion plans include hiring more employees to join the existing 40 and working on product development to provide customers with additional growth opportunities, Bhatal said.
Mark Mullen, founder of Bonfire Ventures, the firm that led Brightflow’s seed platform, said the company’s first customers were e-commerce, which made it easy to understand its pain points.
“The potential that Robbie and his partner Geoffrey have been able to articulate is a far greater vision that they are now starting to realize,” Mullen told TechCrunch. “What they are trying to initiate is financial democratization. There, customers are able to take advantage of fintech opportunities by generating loans and different income streams.
Next, the company is focused on automating its infrastructure and scaling to provide more predictive access, but the human-in-the-loop function is providing intelligence on the infrastructure, Bhatal said.