Flex, an AI-driven fintech startup targeting mid-sized business owners, has raised $60 million in a Series B funding round led by Portage Ventures, bringing the company’s valuation to approximately $500 million. Total equity raised by the firm now stands at $105 million.
The startup focuses on “jumbo shrimp” businesses earning between $2 million and $100 million annually, a segment often overlooked by traditional banks. Flex aims to provide a one-stop platform for private credit, business and personal finance, payments, and other tools, combining multiple services into a single AI-assisted solution. Founder and CEO Zaid Rahman noted that these business owners handle about 40% of American payroll.
Flex has sought to ensure real-world reliability by having financial experts review AI outputs, addressing concerns raised in studies showing limited adoption of AI projects beyond pilot stages. The platform has tripled payments volume to $3 billion in the past year and is launching an invite-only consumer card, Flex Elite, aimed at high-net-worth clients.
The new funds will be used to accelerate product development, expand the team beyond 80 employees, and grow its client base.
