London, 28 September 2023 – Flawless, the AI-powered operations observability & incident management platform, today announced the closing of a $2.2 million Seed round led by B2B software specialist venture capital firm 42CAP. Existing investor Picus Capital also participated in the round, along with new partners Dreamcraft Ventures and Oktogon Ventures. The company also welcomed Wolfgang Wörner, former founder of Sixfold, as its new co-founder. 

Within a year of its pre-seed round, Flawless has evolved from a monitoring and alerting system to an end-to-end operations observability & incident management platform for businesses with high-volume, complex operations. The software allows companies to easily integrate their operational data, thereby enabling data-driven management via custom charting, automated monitoring and alerting, and collaborative incident management. 

Having detected more than a million operational events via the platform, Flawless current customers are primarily ecommerce and marketplace businesses like online flower & gift store Floward and food delivery marketplaces Tazz by Emag or Haat Delivery. However, demand from various other industries such as fintech or healthtech shows that any business with high transaction volumes and fast-moving operations can benefit from Flawless. 

Customers that choose Flawless often feel reactive and manual in their day-to-day operations, resorting to multiple tools like Excel, Tableau and Zendesk to try to manage their work. While some companies build custom internal tools to solve this, those are frequently too expensive and static due to the ever-changing nature of operations. 

The founders of Flawless encountered the same issues when building earlier businesses and working as executives at companies like Delivery Hero, OLX or Scalable Capital. Recognizing emerging technologies such as the modern data stack and AI, they saw an opportunity to drive a new product category focused on data-driven operations management. 

“Operational data has become increasingly abundant in recent years, yet its full potential has often gone untapped. We believe AI is the game-changer here,” said Zoltán Patai, co-founder and CEO of Flawless. “AI already is at the core of various features within Flawless, empowering our customers to discover and leverage the data they need, all without requiring technical expertise or additional support.”

Flawless has seen its customers significantly improve their operational efficiency. For instance, Belle’s operations team managed to free up 20% of their capacity as well as reduce their reaction time to incidents from hours to minutes. 

“We’ve deployed Flawless in a few minutes – since then, our operations managers save hours of daily work by not having to look at dashboards. On top, our reaction time for key issues has been reduced to minutes, which contributes to better customer experience and lower costs.” – highlighted Liviu Herman, Chief Product Officer at Tazz by Emag.   

Flawless is also excited to welcome Wolfgang Wörner to the team as a co-founder. Wolfgang, a seasoned entrepreneur with extensive B2B SaaS commercial experience, previously founded and successfully exited a supply chain visibility startup called Sixfold that was acquired by Transporeon. Wolfgang and Zoltán share a professional history from their time at McKinsey in 2016 and have been contemplating collaboration ever since. 

“With the current macroeconomic conditions demanding more efficient and profitable operations, Flawless’s capabilities are more critical than ever.” commented Wolfgang Wörner on why he decided to join Flawless. “While companies want to move quickly, building such a system in-house takes significant time and money as I’ve seen with my former companies as well as customers – that’s where we come in.”

The new investment comes from investors who have extensive experience in founding and building successful B2B SaaS businesses, such as SAP Hybris or IBM Ustream. The Flawless founders plan to capitalize on this expertise to accelerate product development and global expansion. 

“Operations observability is an untapped market ripe for disruption, and Flawless has the right product and vision to lead the way. What truly sets them apart is the strength and expertise of their team, which gives us utmost confidence in their vision and execution,” said Thomas Wilke, Investment Partner at 42CAP.

About Flawless

Flawless provides AI-powered operations observability and incident management for businesses with high-volume, complex operations. Flawless integrates & activates essential operational data like sales, logistics, and supply chain information. Unlike traditional BI tools, Flawless offers intuitive self-service charting, enables proactive alerting of operational incidents, and facilitates best practice resolution management. Flawless is a remote-first company, with the team currently working out of 5 European countries (UK, Austria, Hungary, Slovakia and Spain).

About 42CAP:

42CAP are seasoned entrepreneurs turned investors. With Hybris and eCircle they previously built two of Europe’s largest B2B software companies culminating in $1.6b cash exits to SAP and Teradata respectively. The 42CAP credo Peers amongst Entrepreneurs is reflected in their investment approach, with which they support data- and technology-driven business models, product-focused founders and sustainable venture development. This background is appreciated by founder personalities, such as Nicolas Reboud (SHINE, Paris), Kristjan Vilosius (Katana, Tallinn), Gregor Stühler (scoutbee, Würzburg), Ben Askew (Packlink, Madrid), Konstantin Mehl (Kaia Health, Munich) and Alex Igelsböck (Adverity, Vienna). Find more: www.42cap.com as well as https://medium.com/42cap

About Picus Capital:

Picus Capital is an international, privately financed venture capital company with headquarters in Munich and offices in New York, Beijing, Berlin, London, Bangalore, Stockholm and São Paulo. Picus predominantly invests in Pre-Seed, Seed and Series A rounds and focuses on technology companies in financial services, HR, energy & climate, healthcare, logistics & mobility, real estate & construction, crypto & web3, deeptech and e-commerce. As an entrepreneurial sparring partner, Picus Capital pursues a long-term investment philosophy and supports founders from the ideation phase to the IPO and beyond. For further information please visit www.picuscap.com and www.linkedin.com/company/picus-capital 

About Dreamcraft Ventures:

Dreamcraft Ventures is a Danish venture capital firm, founded by Jesper Søgaard and Christian Kirk Rasmussen, co-founders and respectively CEO and COO of Better Collective A/S, which is one of the world’s leading sports betting media groups. Dreamcraft invests in tech startups in the Nordics and Germany, and support them in achieving the next rounds of funding. Dreamcraft has raised two funds and its portfolio companies include Airhelp, GRID, NeoKe, Tilta. Read more at https://dreamcraft.vc/ and https://www.linkedin.com/company/dreamcraftventures/ 

About Oktogon Ventures:

Oktogon Ventures is a Budapest based, fully private backed early stage venture capital firm, started by Veronika Pistyur and Gyula Feher. With a female Managing Partner and an exited startup founder-turned-VC, Oktogon Ventures is truly a unique player in the Central European market. Building on Gyula’s expertise in starting Ustream from Budapest, scaling globally, getting funded by Softbank and acquired by IBM, Oktogon Ventures provides hands-on support for its portfolio companies. Since the initiation of the firm in 2019, Oktogon invested into 18 early stage startups, such as Soonicorn Bitrise and AI video platform Colossyan. For more information, please visit: https://www.oktogon.vc/

About the founders

Wolfgang Wörner – Founded and scaled Sixfold – a B2B SaaS supply-chain visibility platform – to 8-figure ARR and 60+ employees before exiting it to Transporeon. Delivered growth for various SaaS start- and scale-ups as independent advisor. Consulted leading tech companies regarding innovation, digitization, and operational efficiency at McKinsey. Holds an MBA from UC Berkeley and a Masters from WU Vienna – both with honors.

Zoltán Patai – Scaled operations of Delivery Hero Hungary as Managing Director from 100 to more than 400 employees and 10x revenues. Worked as Product Owner at fintech unicorn, Scalable Capital. Consulted companies on operational efficiency & digital transformation topics at McKinsey. Holds a Master degree from University of St. Gallen.