In a round led by Moody’s Corporation, financial business data specialist Finagraph has raised $5 million in funding. The company, which demoed at FinovateSpring 2013 as BBC Easy, will use the fresh capital for both product development as well as increasing its market reach in North America.
“Finagraph streamlines the data collection process by replacing weeks of back-and-forth emails and phone calls with the click of a button, instantly transferring financial and credit information,” Finagraph CEO James Walter explained. “Harnessing the power of technology to automate the exchange of financial information between parties is transformative,” he said.
From left: Finagraph co-founders James Walter, CEO, and Corey Ross, VP sales, demonstrated BBC Easy at FinovateSpring 2013.
This is not the first time Moody’s has expressed interest in the company. Earlier this year, we reported that Moody’s had taken a minority stake in Finagraph, though the amount of the investment was not disclosed. At the time, Mark Almeida, president of Moody’s Analytics, said Finagraph’s technology would help “bankers make better, faster lending decisions for the growing SME market.” The current $5 million investment from Moody’s includes that funding from this spring, as well as recent contributions from other investors.
Finagraph’s flagship technology is its Finagraph Engine, which gathers, processes, and analyzes SME financial data quickly with 100% accuracy. Lenders can add the Finagraph Engine to their loan-origination system or app to better collect key business data as well as compare performance against various benchmarks as well as varying time periods. Finagraph also provides its BBC Easy solution, which automates the borrowing base certificate process for lenders and SMEs, and Finagraph Academy, a collection of webinars and seminars for bankers and business owners that provide guidance on building client relationships, managing business finances, and more.
Founded in 2010 as BBC Easy and rebranding as Finagraph in 2013, the Seattle-based company demonstrated its Base Borrowing Certificate technology at FinovateSpring. In September, Finagraph’s technology was leveraged by Moody’s Analytics to build its MARQ portal, which automates the exchange of financial data between borrowers and lenders, generating the MARQ small business score in the process.
- Seattle-Based Finagraph Completes $5 Million Financing.
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The small business intelligence and analytics platform Finagraph has earned an investment from Moody’s, giving the rating service and research firm a minority stake in the Seattle-area company.
According to Mark Almeida, President of Moody’s Analytics, the investment is based on the company’s desire to help FIs that lend to SMEs. Almeida explained:
“Finagraph’s technology and insight into small business financials enable us to accelerate our efforts to transform the way lenders interact with small businesses, helping bankers make better, faster lending decisions for the growing SME market.”
CEO James Walter (left) and VP of Sales Corey Ross demonstrated their platform at FinovateSpring 2013 in San Francisco (a.k.a. BBC Easy).
Known as BBC Easy when it demonstrated its technology at FinovateSpring 2013, Finagraph provides business owners with tools that help them see trends in working capital, find hidden cash, and monitor risk indicators such as declining cash or a rising expenses vs revenues ratio.
Finagraph’s Financial Dashboard plays well with accounting systems such as Xero and QuickBooks and, as of mid-February, is now available for free. Finagraph also offers financial skills training through its Finagraph Academy, and courtesy of its new relationship with Moody’s, Finagraph will provide business credit scores based on Moody’s Analytics Risk Quality or MARQ.
Finagraph was founded in 2010 and is headquartered in Seattle, Washington. The amount of Moody’s investment was not disclosed. The company will gain a seat on Finagraph’s board of directors are part of the deal.
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It is hard to believe that it is almost time for FinovateSpring 2014.
There’s still plenty of time for you to get your tickets to our upcoming event in San Jose, California on April 29 and 30. Our final Sneak Peek preview post is up, all the companies who were prepping under the radar are now out of stealth, and we can’t wait for you to see what this year’s spring crop of fintech entrepreneurs and innovators has in store.
Before we do, however, let’s take a moment to take a look back at last year’s FinovateSpring alums. As we scrolled through blog archives, several themes jumped out: the appetite for startups remains as passionate as ever, with three of our Spring 2013 alums being acquired by such financial sector potentates as Intuit and PayPal. And venture capitalists continue to see innovation in this space as a more than worthwhile investment, with 20 separate fundings for Spring 2013 alums
We’ve grouped the achievements into four categories: Exits, Fundings, Awards, and Acquisitions. Enjoy!
- Jack Henry buys Banno for undisclosed sum
- The rumors are true: eBay’s PayPal acquires Braintree for $800 million in cash
- Intuit buys tax planning/preparation specialist GoodApril
- TaxAct acquires Balance Financial
- CardFlight secures $1.6 million in seed funding from ff Venture Capital
- Encap earns seven-figure investment from ProVenture Seed
- EyeVerify earns $2.3 million in Series A funding
- Jemstep raises $4.5 million in Series A round
- Kabbage brings in $270 million in debt financing to provide small businesses with funding of their own
- Kabbage brings in $75 MIllion in debt financing
- Leaf raises $20 million from Heartland Payment Systems
- Alternative lender LendUp raises $14 million in new funding
- D3 Banking creator Lodo Software Brings in $3 million
- Narrative Science secures $11.5 million in Series C funding
- OpenCoin wins investment from Google Ventures, IDG Capital Partners
- P2BInvestor raises $1.2 million in Series A round
- PayNearMe leverages Family Dollar Partnership; raises $20 million
- PayNearMe raises $10 million in Series D funding, launches Express Merchant Onboarding Option
- Prestadero raises 5 million pesos ($400,000 USD) in first round of funding
- Quantopian raises $6.7 million in Series A round
- Realty Mogul raises $9 million in round led by Canaan Partners
- SeedInvest raises $2 million in crowdfunded investment campaign
- SeedInvest Raises $1 million in round Led by Jumpstart New Jersey Angel Network
- Zooz Closes $2 million Series A round Led by XSeed Capital
- OpenCoin acquires SimpleHoney
- Kofax acquires data integration software provider Kapow Technologies
- NICE to acquire Causata to enhance customer experience management