Charm Solutions, a FinTech startup that has offices in the US and Sweden, has secured $3.5m in a seed funding raise led by BootstrapLabs.
Charm is developing a trusted AI-powered SMB Credit Advisor service that leverages self-learning AI to help institutional lenders transform data into valuable insights to drive profitability and help SMBs make better business decisions.
The firm informs and advises SMB entrepreneurs about critical financing decisions, reducing the overall cost of capital, and accelerating access to liquidity to support their growth. Lenders benefit from Charm’s AI driven risk modeling tools for acquisition, underwriting and portfolio management.
Charm’s AI underwriting models and benchmarking insights, combined with its proprietary SMB Score technology, have been developed over the past 10 years. The platform is currently being used by lending institutions to make decisions for loans faster, reduce processing cycle time, and understand which loans in their portfolio need review during this period of ongoing economic volatility.
The company’s embedded finance platform produces risk models for acquisition, portfolio monitoring, SMB insights and benchmarking without the significant costs of the data scientists, IT infrastructure or the actual loan performance data. It also provides fully transparent and explainable model output for underwriting decisions. With a robust score, trained on a large population of businesses from multiple industries and geographies helping to remove biases.
Charm Solutions CEO Jacob Malmborg said, “BootstrapLabs has been investing exclusively in AI-first startups longer than any other VC firm, and have proven to be a true value-add partner for us. We look forward to leveraging their expertise as we grow our self-learning AI technology to transform complex and disparate financial data into smart business insights that can increase accuracy and bring greater transparency to SMB credit lending.”
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