Ned Secures $4.2M Seed to Transform Small-Business Lending with Innovative Cash Flow Solutions
Ned is a white label lending platform that makes it effortless to qualify borrowers and deploy capital.
Ned, a startup focused on enhancing infrastructure for small-business lenders, has successfully secured $4.2 million in seed funding. It was announced by CEO Dave Silverstein in an exclusive interview with Axios. This funding comes at a pivotal time when private credit and direct lending are gaining traction as viable solutions to bridge the financing gap faced by small and medium-sized enterprises (SMEs). Ned's platform primarily caters to non-bank lenders, particularly non-profits that support small businesses, by enabling them to make informed financing decisions based on comprehensive revenue and cash flow data. Its innovative white-label origination platform leverages open banking APIs to streamline data collection and offers cash flow underwriting and loan-sizing functionalities tailored to various repayment structures.
The broader implications of Ned's approach are significant, as it addresses the growing demand for greater cash-flow visibility in the lending process. Unlike conventional revenue-based financing platforms that impose a uniform scoring model, Ned allows lenders to customize their eligibility criteria, enabling them to refine their credit policies and enhance their underwriting capabilities over time. Silverstein and co-founder Mayur Motgi, emphasize that many small-business owners, while possessing solid cash-flow fundamentals, may lack traditional credit or collateral, which is why lenders require enhanced visibility into cash flows to effectively evaluate lending opportunities. The seed funding round was led by Impression Ventures, with participation from notable investors such as Capital Eleven, Forum Ventures, Everywhere Ventures, Hustle Fund, and Brooklyn Bridge Ventures.
Read more in Axios Pro.
Check out David and Mayur in Founders Everywhere.