Quick Hits
- 📈 We made 10 investments this quarter:
- 6 new additions to the portfolio
- 4 follow-on investments in existing portfolio companies
OUR ASK: We are investing in the best technical founders at the earliest stages – we would love to meet the top 1% people in your network who are starting companies.
The Pie is Bigger than Conventional Wisdom Thought
Six months ago, the conventional wisdom in venture was that Claude Code and Codex were going to commoditize the developer tools stack. If the foundation model companies are shipping their own coding agents, what happens to Replit? To Bolt.new? To Vercel? Will code review be a thing of the past? Even Figma felt the pressure. If AI can generate entire UIs, who needs a design tool?
The opposite happened. Everyone continued to grow.
Flex portfolio companies CodeRabbit, Replit, Vercel, and Supabase have continued to grow rapidly. Replit crossed 50 million users. Vercel’s ARR surged 240%. Supabase doubled its valuation to $10.5B in seven months.
Even Figma and Cursor accelerated revenue year-over-year. And all this happened while Anthropic continued to grow at unimaginable pace and Claude Code + Codex became ubiquitous.
The narrative became zero-sum too quickly. The jury might still be out but from what we can see, when the cost of building software drastically drops, more software gets built.
And more software means more hosting, more backends, and more code reviews. Rising tides lift all boats.
🚀 New Flex Investments this Quarter
- Ditto Bio: evolutionary intelligence for autoimmune disease
- PX: from laptop to cloud cluster within seconds.
- Replicas: run any coding agent harness in the cloud
- Statecraft Labs: stealth - more to come soon
- Striveworks: the command center for enterprise AI
- Windkey: stealth - more to come soon
- We also continued to double down on our seed investments with 4 additional follow-on investments including Nell, Citra, and two others not yet announced.
Flex Portfolio in the News
- 🧬 Sygaldry announced their $105M Series A led by Breakthrough Energy Ventures to build quantum-accelerated AI servers. We’re excited to be early backers of a company defining the future of quantum.
- 💾 Supabase raised a $500M Series F at a $10.5B valuation, led by GIC with Stripe making a second investment. Over 9 million developers now build on Supabase, and AI agents are now deploying the majority of new databases on the platform.
- 🏥 H1 raised $40M from CVS Health Ventures, a validation of H1’s doctor intelligence platform from one of the largest healthcare companies in the country. 190 million Americans use H1’s platform annually!
- 🛰️ Citra Space raised a $15M Series A led by Washington Harbour Partners to advance space object identification technology. Citra is building the intelligence layer for understanding what 35,000+ objects in orbit are actually doing.
🎉 Flex Community
We continued hosting our recurring events in SF: our founder breakfast and pickleball round robins. If you’re interested in joining the next one for either, please reach out to us.
Quarterly Founder Breakfast!
Our favorite thing about the Flex breakfasts is the serendipitous connections that happen, especially given the diverse nature of our community.
A robotics data founder might just bump into a gaming founder and find unique ways to partner, and you’d never have imagined that connection otherwise.
🌟 Join AngelFlow, a curated community of active angel investors. Only deals with personal backing are accepted.
Reminder of our Investment Sweet Spot
If you know amazing founders building ambitious companies, we want to meet them. We focus on early-stage companies that fit this profile:
- Stage: Pre-Seed/Seed
- Focus Areas: AI Applications, Dev Tools, Infrastructure, Middleware, Data, Consumer Software, Healthcare Technology, Defense Technology
