Fafnir receives seed funding from U.S. Department of Treasury to use AI to help small businesses get the loans they need
DETROIT, September 30, 2019: Fafnir, a fintech lab targeting gaps in small business access to credit, announced today $125,000 seed funding from the U.S. Department of the Treasury to support development of an AI-based solution.
“We are pleased to receive this investment,” says James Yagley, Founder and CEO. “We laid out our vision of an America where small businesses have full access to the credit they require. 8,000 small businesses are turned down for a loan request every single day. The biggest gaps in access to credit are faced by the smallest of small businesses, by women-owned businesses, minority-owned businesses, businesses in rural areas and inner cities.
“Our goal is to develop an AI-based solution to underwriting and servicing that will enable banks to make the loans that they can’t today,” Mr. Yagley said.
“We’re engaged in a long-term R&D effort, and early-stage investment is critical to our success. This is high-risk, high-impact work, and Fafnir appreciates having partners that understand this.”
The funding comes from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund). Fafnir received an award from the CDFI Fund’s CDFI Program through a highly selective process. The funding comes in the form of a grant and is non-dilutive of shareholder equity.
Fafnir works to bring the benefits of financial services innovation to consumers and small businesses everywhere. James Yagley, Founder and CEO, has over 15 years’ experience in financial inclusion spanning the private and public sectors.
Founded in late 2017, Fafnir is headquartered in Detroit and is a Michigan LLC. More info can be found at www.fafnirlab.com.