Target Information

Flowingly, a process mapping and workflow automation platform, has emerged as a vital resource for mid-market businesses seeking to optimize their operations without relying on extensive IT resources. Founded in 2016 by Jon Kalaugher, a SaaS entrepreneur with a track record of successful exits, Flowingly empowers client-facing employees, even those without coding or IT backgrounds, to easily map, customize, and automate both simple and complex workflows. By permitting a swift integration with existing business tools, Flowingly enhances efficiency and productivity across various sectors.

Industry Overview in New Zealand

The process automation market in New Zealand, particularly for mid-market businesses (those with 100-3,000 employees), has historically been underserved. Many software vendors have predominantly focused on large enterprises, often overlooking the unique needs of mid-sized organizations. These businesses often find themselves contending with cumbersome legacy solutions or fragmented tools that provide minimal integration or value across teams.

In recent years, there has been a notable shift towards digital transformation among New Zealand mid-market companies. However, the transition remains slow due to the technical complexities associated with existing low-code platforms, which are frequently owned and controlled by IT departments. Such restrictions can hinder agile developments, particularly in areas requiring swift response times and nuanced understanding of specific workflows.

Flowingly is uniquely positioned to address these industry challenges by offering a no-code platform that enables teams to take control of their workflow automation. This democratization of technology empowers business users to implement solutions without the bottleneck of IT approvals, significantly speeding up the adoption of innovative processes.

The growing trend towards automating workflows aligns with global developments, suggesting that New Zealand mid-market firms could capitalize on these efficiencies. As organizations increasingly recognize the need for digital solutions, platforms like Flowingly are gaining traction among companies aiming to enhance their operational effectiveness.

Rationale Behind the Deal

Flowingly's recent $4.5 million Pre-Series A funding round is a strategic move aimed at accelerating its growth, particularly in the United States. By raising capital from notable investors such as GD1 and Icehouse Ventures, the company is poised to enhance its market presence and continue developing its platform tailored to mid-market needs.

The funding will be utilized for global expansion and further product development, allowing Flowingly to fulfill its mission of transforming outdated manual processes into streamlined digital experiences for its clients. This opportunity to capture an underrepresented demographic within the automation market highlights the growing acknowledgment of process efficiency as a priority for mid-sized enterprises.

Information About the Investor

The leading investor, GD1 (Global from Day 1), has a reputation for recognizing and supporting innovative companies with promising market prospects. John Kells, the Co-Managing Partner at GD1, has expressed confidence in Flowingly’s potential. Kells appreciates Kalaugher’s extensive experience in the SaaS industry and his commitment to customer experience excellence, which is evident from Flowingly’s strong early product/market fit.

Icehouse Ventures also participated in the funding round, indicating a robust interest in the expanding workflow automation sector. Both investors recognize that the unique positioning of Flowingly can disrupt traditional operational models, making it a bet worth pursuing as the demand for no-code platforms increases.

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From an investment perspective, the funding received by Flowingly appears to be a well-calibrated decision considering the rapidly growing demand for workflow automation tools. The evidence suggesting a considerable uptake in the automation market, which is expected to reach a valuation of around $80 billion by 2027, provides a favorable backdrop for Flowingly's expansion efforts.

Additionally, Flowingly’s focus on catering to mid-market businesses fills a noticeable gap in the process automation landscape. As more companies seek ways to enhance productivity without expanding their IT departments, the ability of business users to manage their workflows through a no-code platform can significantly reduce operational costs and improve efficiency.

The clear understanding that the individuals closest to processes are best equipped to optimize them—combined with Flowingly's user-friendly interface—positions the company to resonate well with its intended audience. Such a strategy not only enhances user engagement but also fosters loyalty among clients who experience the positive impacts of embracing digital transformation.

Overall, Flowingly’s potential to reshape workflow automation in mid-market firms, coupled with robust financial backing and a leadership team with a proven track record, indicates that it could indeed be a strong investment opportunity within the burgeoning tech landscape.

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