TL;DR
- Round progress: $4M closed of $6M round at $30M post-money SAFE. Led by Tami Bronner at Vertex Ventures, with Focal VC following on. $2M allocation remains - book time here if you're intersted.
- Traction: 175 MSPs deployed (4 to 175 in 90 days), representing $7.3M addressable pipeline at $5/device/month pricing ($42K avg ACV).
- Market timing: Treeline AI raised $25M from a16z last week to bolt AI onto acquired MSPs. We own the stack AND the AI - no M&A debt, no vendor tax, more than double the gross margin potential.
- Differentiation: Only platform that eliminates both vendor cost (open source stack) and labor cost (AI agents) simultaneously. AI rollups inherit legacy tooling costs; we zero them out.
The Raise
We've closed $4M of our $6M round at a $30M post-money SAFE, led by Tami Bronner at Vertex Ventures, with Focal VC following on. $2M remains available. If you're interested in participating, book time here
The quarter in one line
We went from 4 production deployments to 175, shipped enough of the platform for MSPs to replace their full stack, and lined them up as real revenue starts flowing.
Traction
- Deployments: 4 → 175 (production tenants with 10+ devices)
- Addressable pipeline: $7.3M - 175 MSPs × 700 avg devices × $5/device/month = $42K ACV each
- Waitlist: 1,932 MSPs → $81M of top-of-funnel capacity
- Community: 526 Slack members (up from 241)
Product: crossing the stack-replacement threshold
We shipped 8 of 19 product categories this quarter - RMM, MDM, SIEM, patching, monitoring, remote access, IT knowledge management and ticketing. That's the completeness threshold: MSPs can now replace their entire legacy stack with OpenFrame instead of running us alongside Datto or Kaseya.
The milestones that mattered most:
- Mingo AI adaptive execution. Our AI technician now handles command timeouts and script conflicts autonomously.
- FleetMDM policies and queries (v0.7.8). MSPs can now set compliance (SOC2, HIPPA etc..) rules and audit device state - patch status, installed software, security posture - across entire fleets.
- Mac agent parity with Windows.
- Infrastructure hardening. 78 bug fixes, separated API gateways, MongoDB replica sets. 99.7% uptime across the fleet.
Customer proof
Two deployments that capture what's changing:
- An MSSP director in Australia is using Mingo to run vulnerability assessments across 300+ endpoints - SMB1 status, legacy TLS configs -without touching a single machine.
- A Scotland-based MSP with 1,000 endpoints, 14 years on legacy platforms, is in active migration conversations after Mingo resolved issues in seconds that would have taken his team a week.
These aren't tire-kickers. They're production deployments with documented ROI and migration intent.
What didn't work: the activation gap
Conversion was harder than modeled. 144 of 175 deployments are active tenants (10+ devices, agent action in 30 days). The 31-tenant gap taught us MSPs need hand-holding through their first 10 devices - documentation isn't enough.
Our response: concierge onboarding. 1:1 calls, pre-configured templates, weekly check-ins for the first 30 days. The next cohort is already tracking better. Once we hit 95%+ activation consistently, we'll codify the playbook into product (onboarding wizard, in-app walkthroughs).
Competitive position: why AI rollups can't catch us
Treeline raised $25M from a16z in March to build an "AI-native IT operating system" by acquiring MSPs and bolting AI onto their legacy stacks. General Catalyst deployed $1.5B into the same playbook - Titan MSP, Long Lake, Eudia.
Our model is structurally different:
| Legacy MSPs (use Kaseya, ConnectWise) | AI Rollups (Titan MSP, etc.) | 🦩 Flamingo | |
|---|---|---|---|
| Stack | Commericial licensing ($120-180/seat) | Acquire MSPs with legacy stacks (Kaseya, ConnectWise, etc.) | Open source (zero vendor cost) |
| Vendor tax | 30% of Revenue | Inherited from acquired MSPs | Zero |
| AI layer | Adding AI products to existing toolset | Bolt AI onto legacy stacks post-acquisition | AI-native from day one (Fae + Mingo) |
| Gross margin | Service margin profile (20-30%) | Service margin profile with AI labor uplift (40-50%) | Targeting 90%+ (no vendor tax, AI labor replacement) |
We can be the vendor layer for their rollups. That lifts their margin while giving us enterprise distribution. The conversation is open.
Now to the first real revenue test
Everything before this quarter was pipeline theater. Now is where it gets real.
We're activating billing with all 175 L2/L3 MSPs. Every one has given us soft committments to deploy but we need to lock it. We'll do 20-minute 1:1s with each, 30-60 days pre-launch, to validate pricing and lock commitments.
The math:
- Conservative (60% convert): 105 MSPs × $42K = $4.4M ARR
- Base case (80% convert): 140 MSPs × $42K = $5.9M ARR
Four priorities to hit those numbers:
- Activate billing with the 175 L2/L3 cohort. Conversion reported by tier in Q3.
- Ship PSA Module (ITFlow - contracting, invoicing, billing). Last blocker for MSPs running us alongside ConnectWise or Autotask. Beta Q2, GA Q3.
- Launch partner referral program. 10% rev share for 12 months on referred paying customers. Formalizes what IT-noch, Secure Tokens, and LNC DATA are already doing organically. Target: 20% of Q3 signups via referrals.
- Close the activation gap with concierge onboarding. Target: 144/175 → 95%+.
