With a 5x oversubscription round, Baselayer created a custom AI-based knowledge graph to simplify and secure business validation processes, reduce fraud in the financial ecosystem, and accelerate performance for small and medium-sized businesses .
New York, May 1, 2024–(BUSINESS WIRE)–Baselayer, a B2B platform that leverages proprietary Graph AI technology to fight fraud and optimize business onboarding, today raises a $6.5 million seed round. announced that it has officially emerged from stealth with an experienced team of compliance and machine learning experts. Baselayer secured around 30 customers in less than 6 months, including Rho and one of his top 5 loan infrastructure systems, expanding his total number of potential business accounts to more than 25 million. Did.
The 5x oversubscribed seed round included Torch Capital, Afore Capital, Founder Collective, Picus Capital, Gilgamesh Ventures, as well as former president of Early Warning Services Eric Woodward, Jason Mikula, Stripe, Brex , was attended by prominent financial industry executives, including Valley executives. Banks, Air Force Bases, and 15 other fintech founders. Despite fintech funding reaching a seven-year low in Q1 2024, significant interest in this funding round continues to evolve while simplifying access to critical banking services by small and medium-sized businesses. This highlights the market's urgent need for innovative solutions to combat these fraudulent methods.
The banking industry has long faced the challenge of validating small businesses during Know Your Business (KYB) checks, resulting in lengthy manual processes that can stretch from days to weeks. Ta. Advances in fraud strategies and the prevalence of fraud are making this effort even more difficult, costing global banks $500 billion in 2023. Fraud is a growing threat to the revenue and growth of both traditional banks and fintechs, complicating efforts to quickly verify. Business customer legitimacy.
Jonathan Awad, CEO and co-founder of Baselayer, said: “For startups and small businesses, waiting days or even weeks to gain access to a bank account can be devastating. There is.” “It’s impossible to run a business without a bank account, and as fraud becomes more sophisticated, it becomes even more difficult for banks to authenticate small businesses and startups. Banks, financial institutions, and payment companies on Baselayer's platform now have access to corporate fraud shares that don't exist anywhere else on the market. , the ability to identify, assess and predict risks for all potential business customers in real-time, eliminating friction between businesses in the KYB process to provide more security to banking systems than ever before. It has existed for a long time.”
Timothy Hyde, co-founder and CTO of Awad and Baselayer, found himself unable to secure a bank account for his business following multiple bank failures in early 2023. Ta. They quickly realized that they were not alone in facing this problem, and as a result, they were unable to secure accounts. To pay bills and vendors. With no solution other than to wait over a month for a manual review process to be rolled out, they decided to build one themselves. In particular, they saw an opportunity to take advantage of knowledge graphs generated by artificial intelligence. Mr. Hyde had expertise from previously founding and selling a machine learning company to his Fortune 500 company.
Baselayer now goes beyond traditional credit bureaus to pool data and provide real-time alerts. Baselayer can predict and distinguish between legitimate and fraudulent patterns, allowing financial institutions and government agencies to quickly verify legitimacy and assess risk for new customers in seconds.
“Every consumer will eventually become a business,” said Eric Woodward, former president of Early Warning and founder of Zelle Risk. “This highlights the importance of banks and providers being able to quickly and accurately assess and verify the identity and risk of large and small businesses.While there has been tremendous innovation in consumer authentication, security remains There was no comparable solution on the market to ensure KYB processes that Baselayer currently uniquely offers. ”
Just six months after its introduction, Baselayer is already integrated into a variety of clients and systems, from traditional banking providers to small and medium-sized fintechs. That includes his one of the top five loan infrastructure systems, managing loans for his more than 25 million accounts across nearly 1,000 banks. And the lenders. Rho is a powerful business banking platform with award-winning customer support, built-in spend management, and an early adopter of Baselayer.
“Working with Baselayer has been a game-changer for us,” said George Remennik, Law's acting chief compliance officer. “Baselayer helps us accurately validate business applicants and get Rho’s new customers up and running on our platform significantly faster, while also supporting the integrity of our world-class compliance operations. .”
With this funding, Baselayer plans to double down on investing and expanding its platform, as well as refining and building new features for its GenAI models.
About the base layer:
Baselayer is an innovative B2B platform powered by proprietary artificial intelligence technology that reduces fraud, automates business onboarding for small and medium-sized businesses, and strengthens security across banking systems. Its platform transforms the siled data sharing that previously existed across financial institutions, increasing customer trust levels and providing enhanced peace of mind for every bank nationwide.
In 2023, industry veterans and entrepreneurs Jonathan Awad and Timothy Hyde saw the complexity of validating businesses across the financial system and the opportunity to revolutionize the process through customized AI models. Co-founded Baselayer. Baselayer is backed by angel investors including Torch Capital, Afore Capital, Founder Collective, Picus Capital, and executives from Early Warning, Brex, and Stripe. For more information, please visit www.baselayerhq.com.
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