Tim DraperFounder and Managing Partne, Draper Associate · I back the ideas that look crazy first

💡 Flexclub’s Vision: Scaling with Strategy! 🚀

19 Mar 2024 · 1 min

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Tim Draper discusses Flexclub's scaling strategy with a founder focused on growing the team and reaching break-even within 12 months. The company is working with leading brands and plans to shift toward recurring transactions as it expands.

With the extra capital for which you're here, what would that enable you to do?
The extra capital would enable us to scale our team. So right now we have 40 people in our team, a significant proportion of which is focused on building the technology.
Scale our team sort of scares a venture capitalist going into a bear market. What's your thinking there?
I think I just went with a knee-jerk response of, I was still thinking that the appropriate narrative to sell is one that's just optimizing for growth.
Might have created the interpretation that we're tone deaf.
It's not an aggressive scaling. I think the point at which, at which we are, we already have significant momentum with some of these leading brands. So this is actually a plateauing of costs where our revenues will continue to scale. So it's not a perpetual scaling of our team. Our view is that over the next 12 months, we can actually get closer to break even and drive profitability by processing more recurring transactions.
Why can't you break even now?