Overview

Heron Data streamlines the underwriting process for small business lenders using machine learning technology. The company's system evaluates merchant applications, analyzes bank data, and performs various checks to determine the creditworthiness of small businesses. If a business does not meet the lender's criteria, it is automatically declined, which saves time and resources for lenders. Additionally, Heron Data provides a dashboard for lenders to monitor their loan portfolio's performance, helping them identify both growing businesses and those at risk of default. This technology allows lenders, including Merchant Cash Advance providers and revenue-based financiers, to make quicker credit decisions, enhancing their revenue and efficiency. The goal of Heron Data is to improve the speed and accuracy of credit decisions in the small business lending sector.

Simplify's Take

What believers are saying

• Open Banking standards enhance Heron Data's machine learning models for credit assessment.
• Embedded finance trends expand Heron Data's market reach into non-financial platforms.
• Rising demand for real-time analytics boosts interest in Heron Data's monitoring dashboard.

What critics are saying

• Competition from established fintechs threatens Heron Data's market share.
• Rapid tech advancements require Heron Data to update algorithms frequently.
• Data privacy concerns and regulatory scrutiny could impact Heron Data's operations.

What makes Heron Data unique

• Heron Data uses machine learning to streamline small business underwriting processes.
• The company offers a dashboard for monitoring loan portfolio performance over time.
• Heron Data's ISO application parser converts forms into structured data quickly.

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Funding

Total Funding

$1.2M

Below

Industry Average

Funded Over

1 Rounds

Notable Investors:

BoxGroupY Combinator

Notable Investors:

BoxGroupY Combinator

$1,200,000

Seed

Sep 2020

Seed funding is usually the first official round after pre-seed, when a startup has a prototype or concept. It’s typically used to develop the product, test the market, and start building the team. Investors here are often angel investors or early-stage venture capitalists.

Seed Funding Comparison

Below Average

Industry standards

Ind Avg. $3.3M

$500k

$1.2M

$1.5M

$2M

$2.3M

$3M