Gaining capital is one of the biggest challenges for small businesses. Fundid Founder and manager Stefanie recalls that she bought her own card for her first business, and when she saw similar things happening to friends, she realized she could not just sit back and relax.
The company started its business financing after more than a decade as a small business owner in Montana. Although she admitted that her company did not face the same problems as getting capital because of real estate related to her family’s advertising, she saw friends who struggled to get capital from banks because they did not have the same assets to profit from. ‘i take advantage of.
She was already working with a non-profit group of business women, and many had gathered feedback on capital facilitation – 70% told her, “No, I’m not sure how to get funding” – that she knew a lot less. needed a simplified business approach to access business and business capital.
“We are focusing on business growth. The time they need capital is when they have the opportunity to grow, bringing in a larger customer, for example, they need to hire new employees, but that goes along with the initial cost of finding new employees. , like buying a laptop, ”Sample told TechCrunch. “We are able to provide enough to improve their economy so that they can say ‘yes’ to growth at that time.”
Fundid has already worked with more than 16,000 businesses, particularly those with fewer than 10 employees, of which Sample says 80% of the 31 million U.S. businesses The company provides three support sectors:
- Loans through Fundid Capital.
- Business building card. The company has developed a proprietary subscription model with Experian. This kicks off in the summer, and exemplifies that it is “the first business building card that increases the credit of businesses for less than 10 employees and creates a clear path for business growth.” There were already more than 6,000 people present waiting list.
- Business financing tools, including financial knowledge and easy access to grants and programs available to small businesses. Last May, Fundid launched its grant-like features that provide one-stop access for business owners to set terms and match offers to meet specific needs.
Adding a credit card is one of the new features introduced by the company’s first fund of $ 3.25 million seed investment, led by Nevcaut Ventures. Joins included the Artemis Fund (this is the second announcement they were involved in this week, including Upgrade) and Builders and Fans.
In addition to building card products, Sample wants to use the new investment to get its first customers in credit and card business – most of its customers are using matching products – and hiring new employees. Fundid itself has less than 10 full-time employees.
Meanwhile, although it is not its initial focus, Sample finds that Fundid’s approach is to help women and minority business owners, who make up the majority of small business owners.
“We feel we have a special angle to address the availability of capital for businesses of 10 and under. If we can do that, we can target all the founders who are discriminated against and not make them feel discriminated against,” she added.