Vancouver-based financial technology upstart JUDI.AI has secured investment from Regina’s Conexus Venture Capital.
Founded in 2016, JUDI is on a mission to “transform small business dreams into vibrant communities by increasing access to capital.”
The B.C. fintech firm offers a cash flow underwriting platform that enables community-based financial institutions to provide a fintech-like experience for small business loans.
With a decade of performance data, the AI-enabled platform uses real-time bank transaction data and a proprietary cash flow model to quickly evaluate the creditworthiness of a small business borrower.
Supporting credit unions and community banks throughout North America, JUDI’s fintech has thus far processed more than $2 billion in loan applications.
“At JUDI, we’re not just selling a platform,” posits chief executive officer Gord Baizley. “We’re championing a methodology.”
“We’ve learned that success in small business lending is more than just technology,” he continued, “but a holistic approach that blends people, process, technology, and intentional growth.”
Conexus, which manages $60 million in assets across two funds, is investing in the Canadian innovator through its CVC Fund #2.
“We believe credit unions and community banks can and should be the small business lending market leader,” says Jordan McFarlen, who functions as managing director for Conexus.
“Small business lending and credit unions are a perfect match,” Baizley agrees.
“JUDI.AI’s impressive team, top-tier product, and rapid expansion make this an opportunity we could not pass on,” McFarlen stated. “We are excited to back Gord and the JUDI.AI team as they help more credit unions win.”
The small business lending market “is changing rapidly,” Baizley says, “but we play a critical role in helping credit unions leverage their strengths, adapt, and win.”
Unitus Community Credit Union also invested in JUDI.
“Unitus is committed to investing in innovative solutions that help us better serve our members and communities,” explains CEO Steven Stapp. “Our continued partnership with JUDI.AI reflects our belief that small businesses deserve faster, simpler access to capital so they can focus on growing, creating jobs and strengthening the local economy.”
The capital will support JUDI’s growth strategy, according to Baizley, including market expansion and product development.
Founded in 1937 as the Oregon Telephone Employees Credit Union before rebranding in 2004, Unitus today counts more than 106,000 members.
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