How Flare helped Heron Data (YC S20) close their $16m Series A in 9 weeks.
How Flare helped a YC-backed company with US and UK entities get diligence-ready and close their Series A. From the start of the raise to funds wired took nine weeks.
In the round
“The Flare team have been exceptional to work with — always responsive, transparent, and incredibly helpful. I'll absolutely be recommending you to other YC founders in my network.”
01 · At a glance
A US and UK group, one investor story.
Heron Data is a YC-backed company that uses AI to automate document workflows for finance companies in lending, insurance and equipment finance. The company runs a US and UK structure, with teams in New York and London.
As Heron prepared to kick off its Series A, the team partnered with Flare to get the books into the shape investors expect and to move quickly once diligence started. Insight Partners led the round, with Y Combinator, BoxGroup and Flex Capital participating.
02 · The challenge
Two sets of books. One request list.
Heron's investors were looking at a multi-entity group. A US company and a UK company had to read as one story: accrual revenue, a clean cut-off, and expense lines that could survive a request list.
The timeline was ambitious. Heron wanted the financials presented in the structure and level of detail investors typically expect during diligence.
“From start of raise to Series A funds wired took just nine weeks.”
A timeline the Heron Data team does not believe would have been achievable without Flare's support.
03 · The sprint
Diligence-ready before the request arrived.
Flare deployed a dedicated diligence team with experience supporting these projects alongside firms like KPMG. They knew what usually comes up, and started a readiness sprint with Heron before the request for information arrived.
- 01
Revenue recognition, on an accrual basis
Flare aligned revenue recognition across the US and UK entities, so investors see one group story that matches how the business actually earns.
- 02
Accruals and expense cut-off
A full cut-off review so gross margin and EBITDA held up when diligence asked where the period really ended.
- 03
The expense lines investors open first
A detailed breakdown of employee costs and the other material lines that show up in almost every Series A request list.
- 04
Ready before the request arrived
Flare walked Heron through how diligence works in practice, so the team could answer the request for information quickly once it landed.
04 · The impact
Nine weeks, then the round closed.
Diligence was completed in time for the close. Heron Data went on to announce a $16 million Series A.
Read the Insight Partners announcement