Australian video capture startup Flowstate is barreling into new markets and finding fresh customers for its AI-powered technology, after securing $600,000 in fresh debt funding from Tractor Ventures.
Speaking to SmartCompany, co-founder and CEO Luke Wallace says the new funding will help Flowstate on its new mission to become the Strava of surfing.
Flowstate’s video technology allows manmade wave parks to track and film riders, with the resulting footage providing new opportunities for coaching — and impressive social media posts.
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Venues can charge surfers to access those clips, driving extra revenue and adding a new facet to the customer experience.
The startup claims its system has captured and analysed more than 12 million rides since launching in 2022, across wave parks in Australia, the USA, Germany, England, Scotland, and the UAE.
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A demonstration of Flowstate’s video capture technology. Source: Flowstate
New wave of innovation
Wallace told SmartCompany the startup is currently developing a consumer iPhone app, bringing the Flowstate video system out of the wave park and into the ocean.
“The underlying AI technology and infrastructure we’ve created is really transferable, from object tracking and identification, to back- and front-end applications,” said Wallace.
It has also unveiled automated manoeuvre detection, tracking metrics like pop-up time, turns, and ride duration.
Altogether, the app will help surfers “set goals to measure their progression, connect with the community, connect with coaches for feedback, run competitions,” and generally “perform better” on the waves, he said.
It is “a bit like Strava” with a focus on action sports, Wallace added.
In addition, Flowstate wants to bring its fixed-camera technology to the slopes and theme parks through its Flowstate Attractions platform.
For many thrill-seeking attractions, “You can’t take a camera or phone on the ride or activity,” he said.
And we live in a day and age where if you didn’t capture the moment and share it on social media, did it really happen?
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“Having a video of you and your friends having the time of your life, climbing a landmark or screaming your head off on a ride is priceless.”
The startup is partnering with Gold Coast Aqua Park in the lead-up to summer.
“We are constantly approached by other industries expressing their interest in our services,” said Wallace.
“My biggest problem is having to say no to many great opportunities.”
New debt funding to drive growth
Flowstate raised a $1.2 million seed round 18 months ago and considers the new non-dilutive debt facility as an additional seed round.
“We didn’t feel like we were ready for a Series A raise as yet, as we wanted to demonstrate traction and run rate with the new initiatives, so that our revenue projections will stand strong when we go to raise again,” said Wallace.
“And hence the debt funding option via Tractor was a good option for us right now.”
In a statement, Tractor Ventures CEO Jodie Imam* said she is “thrilled” to financially back a business with proven product-market fit.
She also billed Flowstate as a prime example of a business looking to scale without ceding equity.
“When you know you can use capital to bring forward revenue at a positive margin, it’s crazy to sell shares for those activities,” she said.
Looking further ahead, Wallace said Flowstate could venture even further away from its core surfing product and emerging attractions platform.
“Our snow product is in R&D mode, having spent time this year in Utah and Colorado capturing footage and scoping out the mountains,” he said.
“We plan to release this soon.”
*Disclosure: Jodie Imam serves as a non-executive director of Private Media, the publisher of SmartCompany.
