Flint Capital is an early-stage venture capital fund that has invested in companies like Flo Health, Bluebricks, Sensi.AI, BlinqIO, Oneday, WalkMe, and Lending Club. Pulse 2.0 interviewed Flint Capital partner Andrew Gershfeld to learn more about the firm.
Andrew Gershfeld’s Background
What is Andrew Gershfeld’s background? Gershfeld said:
“My background in applied physics led me to discover venture capital early in my career. I realized my passion for science, innovation, and technology while working with friends and a professor on a startup in acoustic optics at the Institute of Physics and Technology. This experience inspired me to pursue a career in entrepreneurship, which eventually led to founding and successfully selling an online consumer service similar to Groupon.”
“Having experienced the full entrepreneurial journey, from ideation to exit, I decided to share my knowledge and support other entrepreneurs, becoming an investor in 2010. My entrepreneurial drive continued to grow and led me to start Flint Capital with my partners Dmitry and Sergey. Over the past decade, we’ve helped build billion-dollar businesses and continue to see promising companies in our portfolio.”
“Even if I’ve immersed myself in the venture capital industry, though, I still consider myself an entrepreneur at heart.”
Evolution Of Flint Capital’s Thesis
How has your firm’s thesis evolved over time? Gershfeld noted:
“Flint Capital was established by founders and operators who have firsthand experience in building companies, with the mission of supporting early-stage software entrepreneurs as they scale in the US market. Early on, we recognized the significant potential in startups based outside of Silicon Valley. These companies often have talented founders but lack the established networks and market entry strategies needed to thrive in the US. We saw an opportunity to leverage our expertise in areas such as go-to-market strategy, fundraising, and corporate governance to bridge this gap and help them succeed.”
“A great example is our focus on Israel, where we began sourcing deals in 2014. Since then, we have invested in over 30 companies from Israel. The country has a rich talent pool and a startup ecosystem that has produced more than 88 US-based unicorns with a combined valuation of $230 billion as of 2022. This fits into a broader trend—55% of US tech unicorns (319 of 582 as of May 2022) are founded by immigrant entrepreneurs, with Israel, the UK, and Canada among the leaders. These regions are now a key focus for us when sourcing new deals.”
“Over time, we also recognized that while early-stage support is critical, it’s equally important to provide ongoing financial backing as companies grow. That’s why we introduced the Flint Capital Opportunity fund, which allows us to continue supporting our portfolio companies at later stages, ensuring they have a reliable partner throughout their entire growth journey.”
Favorite Memory
What has been your favorite memory working for your firm so far? Gershfeld reflected:
“The most rewarding part of this journey is watching our founders succeed. When one of our portfolio companies has a successful exit or goes public, it’s like a second birthday for our team. It’s equally inspiring when seasoned founders, who have already achieved success, return to us—whether it’s to entrust us with managing their capital or to ask for our support in their next venture. It’s a strong testament to their trust in us and our approach. We’ve even had founders from our Fund I investments become LPs in our Fund III.”
Significant Milestones
What have been some of your firm’s most significant milestones? Gershfeld cited:
“Over the years, we’ve invested in more than 60 companies, achieved 22 successful exits, and established strong partnerships with major acquirers such as Microsoft, Snap, and ServiceNow.”
“One of the most rewarding aspects has been witnessing the success of key portfolio companies we’ve helped build, like WalkMe, which raised $287 million in its Nasdaq IPO at a $2.5 billion valuation. Noteworthy success stories also include Socure, which raised $450 million at a $4.5 billion valuation, and Flo.health, which recently raised $200 million at a $1 billion valuation. These companies have become defining examples of our firm’s ethos and approach, showcasing the type of impact we strive to create.”
“As emerging managers, raising each subsequent fund has been a significant milestone, affirming the strength and consistency of our strategy. We are now on Fund III, which has reached $160 million in commitments, bringing our total funds raised to nearly half a billion dollars.”
“One of our proudest achievements is maintaining the same General Partner team throughout the years, reflecting complementary skills and a reliable decision-making process. Additionally, our early funds have delivered strong returns and DPI, placing us in the top quartile by performance—another major milestone for Flint Capital.”
Investment Success Stories
Would you like to share any specific investment success stories? Gershfeld highlighted:
“One of our standout success stories is Flo Health, which has become the #1 Women’s Health App globally and the largest app in the Health & Fitness category by monthly active users. To put it in perspective, Flo’s user base now exceeds the population of the UK, where the company’s headquarters are based.”
“We were the first institutional investor in Flo Health back in 2016 when the company was still small, with just a handful of employees and fewer than 50,000 monthly active users. Initially, we led their Seed round, provided a bridge to Series A, and played a key role in orchestrating the Series A financing—critical steps that helped set the company on its path to success. I’ve had the privilege of serving on the board for many years, and I’m more excited than ever about Flo’s future, especially after the recent $200 million Series C round led by General Atlantic, which has solidified Flo as a category-defining product.”
AUM And Other Metrics
When asking Gershfeld about total AUM or any other notable metrics, he revealed:
“We can focus on the results of our first fund, which boasts a TVPI of 4.5 and a top quartile Net IRR of approximately 25%, significantly outperforming the median for similar funds.”
“In terms of AUM, we’re nearing half a billion dollars, with our most recent raise of $160 million setting the firm’s record to date. This achievement is particularly noteworthy given the challenges in the current VC market, and it reflects the strong confidence our LPs have in our strategy.”
Industry Focus
What are some of the industries that your firm is focused on? Gershfeld pointed out:
“Our target industries are Cybersecurity, Digital Health, Fintech, Enterprise SaaS, DevOps, and consumer mobile apps.”
Differentiation From Other Firms
What differentiates your firm from other firms? Gershfeld affirmed:
“What truly sets us apart is our team. My partner, Sergey Gribov, was employee number one at Compugen, one of the standout Israeli startups featured in the book Start-up Nation. Twenty years ago, he relocated to the US to launch their US office. Fluent in Hebrew, Sergey has a unique ability to connect with almost anyone in the Israeli tech scene.”
“My partner, Dmitry, has a technical background—graduating as an engineer and starting his career at a mobile telecom company, where he focused on launching additional services for the operator’s network. He excels at building relationships with investors and has a remarkable talent for connecting with successful entrepreneurs who have built global companies.”
“As founders and experienced operators ourselves, we understand the language of entrepreneurs and empathize with their challenges and needs. Additionally, being immigrants gives us a unique perspective and enables us to relate to the issues faced by international founders.”
“For example, when the founders of ODAIA were at a crossroads, deciding between raising more capital or exiting via M&A, I helped them navigate the decision, facilitated secondary transactions, and enabled them to continue their journey by raising an oversubscribed $25 million Series B round to propel their growth.”
“This close alignment with founders has led to our recognition twice by Inc. as a Founder-friendly fund, an honor awarded based on the feedback and experiences of the entrepreneurs we support.”
Challenges Faced
What challenges have Gershfeld and the team face in working at the firm? Gershfeld acknowledged:
“We treat the firm as a startup, and as every startup, we faced several typical challenges. First, building a proprietary deal flow was crucial. For an early-stage VC firm, access to great deals is half the battle. Therefore, we focused on developing strong relationships with micro VCs and angel investors who share our values and business outlook. We supported some with investment checks and created a platform that now allows us to thoroughly evaluate thousands of companies each year. We also offer our partner funds reliable feedback on prospects, along with network support and follow-on capital.”
“The second challenge was brand recognition. In the beginning, few people knew us, so we had to make a strong impression. We took an aggressive approach, closing 12 deals in just four months with Israeli founders, which quickly put us among the top three most active VC firms in the region. This strategy helped us build buzz and create network effects that continue to benefit us. Notably, one of those early investments was in WalkMe, which went public in 2021, returning a significant portion of our first fund.”
“Access to capital was another major hurdle. Instead of targeting institutional investors with complex decision-making processes, we focused on successful software founders. We speak the same language, and they were eager to support the next generation of entrepreneurs while staying focused on their own businesses. This approach paid off faster than we expected. Once we started showing success, our LP network grew tenfold. Today, we manage four funds without relying on institutional capital.”
“Finally, operating across multiple locations with a small team of 3 partners and two principals in different time zones was challenging. Early on, we established a set of rules—weekly partner calls, pipeline reviews, and quarterly face-to-face meetings. We also implemented various tools to support our operations. When COVID hit and many investors pulled back, we had an advantage because we were already accustomed to remote work long before it became mainstream.”
Future Firm Goals
What are some of your firm’s future goals? Gershfeld concluded:
“Our goal is to continue empowering talented founders by providing them with a bridge to the US market. We aim to keep expanding our network of successful entrepreneurs and partners, fostering innovation, and helping companies accelerate their go-to-market strategies.”
“In the near term, we are excited to support a new cohort of 25 Seed and Series A companies, welcoming them into our network and providing financing through Fund III.”
“Ultimately, our focus remains on creating value for both our founders and LPs, and we are committed to maintaining the level of trust they have placed in us as a reliable and valuable partner.”
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