AI Startup Flex Raises $60 Million to Expand Financing Tools for Mid-Sized Businesses

According to Reuters, London-based AI startup Flex has secured $60 million in a Series A funding round led by BGF, a UK government-backed private investment firm. The funding aims to expand Flex's AI-driven financial tools designed for mid-sized businesses. Announced Thursday, this round values Flex at around $150 million post-investment, amidst increasing demand for digital financing solutions among businesses struggling to access traditional capital. Flex offers a platform that leverages AI to evaluate credit risk and provide quick funding to mid-sized companies, typically those with annual sales between £10 million and £100 million. The platform uses alternative data, such as real-time cash flow and sales data, to make instant financing decisions - unlike traditional banks that rely on historical financial reports. Chris Smith, CEO of Flex, stated: 'Mid-sized companies often find themselves trapped, being too large for small loans but too small for major investment financing. Our platform changes that with AI, providing fast, transparent funding that supports unhindered growth.' Other investors in the round included Octopus Ventures, Plexal, and several angel investors. Flex plans to use the funds to expand its team of over 50 employees, strengthen its AI capabilities, and enter new European markets. Founded in 2023, Flex has already funded over 200 mid-sized businesses with a total value exceeding £50 million. Amid Europe's economic slowdown, where companies face difficulty securing financing, the FinTech sector has seen a 25% growth in investment this year, according to Sifted reports.