Flowspace raises $2.2 million in funding for on-demand warehousing platform

On-demand warehousing startup Flowspace said today that it has raised $2.2 million in funding and will use the capital to scale up its business in the run-up to the holiday peak selling season.

The investment was led by Moment Ventures of Palo Alto, Calif., with additional participation from 1984 Ventures and Y Combinator. It follows an earlier round of funding that totaled $1.2 million.

Flowspace, based in Marina del Rey, Calif., provides on-demand warehousing and fulfillment services for small and medium businesses that need to manage overflow inventory, deploy direct to consumer shipping, or accommodate an influx in inventory due to seasonal demands, the firm says.

Much like the other major player in the warehouse sub-leasing sector, Seattle-based Flexe, Flowspace says its service allows businesses to locate warehouse space on an as-needed basis without having to commit to long-term contracts.