Bags, a U.S. FinTech that blends AI-driven financial reviews with human expertise to support small businesses, has secured new capital as it looks to expand its reach across the country.
The company has raised $2.75m in a funding round led by Ford Foundation, with participation from Partnership Fund for New York City, Zeal Capital Partners, Slauson & Co, Limited Ventures and Blueprint FTC.
These investors join existing backers including Slauson & Co, Connecticut Innovations, Howard Schultz Family Foundation and Swanston Labs. The latest round brings Bags’ total capital raised to $7m.
Bags focuses on helping small businesses understand and improve their financial health by providing a mix of AI-powered bookkeeping insights, CFO-level reporting and strategic support. Many small firms struggle to secure financing or scale due to disorganised books, missed expenses or incomplete documentation.
Bags aims to close that gap by ensuring their financials accurately reflect business performance.
The fresh funding will be used to develop the company’s product suite and strengthen partnerships with mission-driven lenders and Community Development Financial Institutions (CDFIs).
Bags also intends to broaden its network of pilots with CDFIs and Minority Depository Institutions (MDIs) in 2026, targeting improvements in how borrowers prepare, package and manage loans.
The announcement follows strong traction among its users. According to the company, firms using Bags’ platform grow on average 250% year over year, are 4.5 times more likely to secure funding and receive financing five times faster than the national average. Bags recently launched free AI-powered financial reviews, helping entrepreneurs identify errors in their statements, understand likely causes and map out appropriate solutions.
Bags CEO Daniel Taylor said, “We’re changing the way small businesses think about money. By combining AI financial reviews, CFO level reporting, and access to over $10 billion in available credit, we help entrepreneurs become stronger operators and grow their businesses with confidence.”
Maria Gotsch, Partnership Fund for New York City president and CEO, said, “By equipping small businesses with better financial management tools, guidance and access to debt capital, Bags is helping a critical part of our economy remain competitive and financially resilient. A New York-based company themselves, Bags is a great example of applying new technology to solve real problems that serve the public interest.”
Founded in 2020 by Daniel Taylor, William Hayden and Ignacio Semerene, the company’s long-term vision is to create a financial environment where small firms are not held back by systems that fail to understand their needs but instead have access to clean, accurate books and the resources required to grow.
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