Investment Review: Flexbase
This post is part of my angel investing series where I review investments after they’re completed. These posts are not investment advice, solicitations, or offers of any kind. They are simply my thoughts on companies I’ve invested in and how they fit into my thesis.
For background on my approach to angel investing and my investment thesis, see my introduction to this series.
Company Overview
Flexbase is building a vertical payments platform for the construction industry. They are focused on solving the problem of how to pay subcontractors in a timely manner, without the need for personal guarantees. With Flexbase, companies can issue a card to employees, 1099s, or whoever, and then they can go buy the things they need to get jobs done, and pay the card back once the job is complete and the client pays.
Thesis Fit
Macro trends:
- Construction is going abosultely nuts and growing fast, contracts are going to keep buying materials
- Materials are expensive and getting more expensive, so the need to pay subcontractors quickly is critical
- Contractors are caught in the middle and underserved by the financial system
Founder fit:
- Founder is a Theil fellow, grew up in a family of builders, and has a deep understanding of the construction industry
- Senior execs from relevant financial players for a good mix of required experience and network
Conclusion
Overall this is a good fit for my thesis, it’s in line with the macro trends since Covid in commodity prices, construction, and supply chain and serves a critical need in the folks that sit in the middle of all of it. I’m excited to see where they take the company.
Note: This review is written after the investment was made and is not intended to be forward-looking or to provide any form of investment advice. It represents my personal views and learning journey in angel investing.