Flamingo Raises US$4.5 Million to Rebuild the MSP Infrastructure Stack

Vertex Ventures Israel leads the seed round, backing an open-source, AI-native platform for IT and security teams

Managed service providers (MSPs) have long operated on thin margins, squeezed between rising vendor fees and the labour costs of handling repetitive technical work. Password resets, ticket triage, routine security monitoring — much of it still requires a technician's time, even as client expectations for faster, cheaper service continue to rise. The tools MSPs rely on to do this work are typically fragmented: a patchwork of point solutions stitched together, each adding its own licensing cost and integration overhead.

Flamingo was built to close that gap. Its OpenFrame platform unifies the MSP technology stack into a single open-source layer, then embeds AI agents directly into it — agents capable of closing tier-1 tickets, running security tasks, and handling operational work that previously required a human in the loop.

"We're rebuilding the infrastructure layer and putting agents directly into it, so they can actually close tickets," said Michael Assraf, founder and CEO of Flamingo.

The approach reflects a broader shift underway across enterprise IT, as organisations look to AI not just to assist technical staff but to absorb entire categories of operational work. For MSPs in particular, the economics are significant: open-source infrastructure reduces the vendor fees that erode margins, while AI agents reduce the labour costs tied to scaling client support. Together, the two levers point toward a model where providers can grow their client base without growing headcount at the same rate.

Vertex's perspective

"As IT becomes a key enabler of AI adoption, the stack itself has to evolve," said Tami Bronner, Partner at Vertex Ventures Israel. Bronner noted that combining lower-cost open infrastructure with agents capable of performing operational tasks could fundamentally change the economics of the IT services industry.

This US$4.5 million seed round brings Flamingo's total funding to US$6.7 million, following a US$2.2 million pre-seed round in October 2025. As Flamingo prepares for its commercial launch, the company is positioning OpenFrame as the infrastructure layer for a new generation of MSPs — ones that operate, and compete, more like software companies than traditional service providers.