Funder Acquires Automated Underwriting Startup for Post Pandemic Market
In an age of changeups, the talent or tech a firm acquires has increasingly become what sets them apart from the pack.
Yes Lender, a funder based in Pennsylvania, recently teamed up with MCA AI underwriting startup Edge Funder. Yes bought Edge and will bring co-founders Amotz Segal and Kobi Ben Meir to the team as Vice President of Business Development and Chief Marketing Officer.
Segal, an industry vet with a decade of experience in MCA, said it was a great time to join forces and grow.
“[Yes Lender] weathered this pandemic in a pretty impressive way, I would say,” Segal said. “What they see now is an opportunity to take advantage of the post-pandemic market and the need for a more sophisticated data driven system to improve their chances to become one of the biggest names in this industry.”
Surviving the pandemic in style is something Yes Lender and Edge have in common. Back in 2019, Segal left Yalber and started an investment consulting firm. By May 2020, the pandemic had soured business, but he and his co-founder Ben-Meir saw an opportunity.
“During the pandemic, I realized fairly quickly that many of the MCA companies are going to go out of business because of the nature of the shutdown,” Segal said. “So I decided to take the opportunity and apply my experience, knowledge, and start my own platform.”
The idea was simple, he said: create something that would address the pain points of the industry. They worked with the concept of building a platform that treated business owners just as consumers are treated in consumer finance. They began generating leads directly from SMBs like a consumer funding product, though Segal said they would always be focused on working with ISOs as well.
Next, they focused on turning the application process into a seamless, automated process. While the MCA industry can fund in 24 or 48 hours, the consumer credit world still has it beat, with card applications processed in as little as 30 seconds. That is the target time for online MCA applications, Segal said.
He said they look forward to being a part of the Yes Lender team and executing that vision. Glenn Forman, CEO of Yes Lender, said in a release that the firm is fortunate to have joined forces with Edge.
“Their lead generation and direct-to-merchant funding platform are terrific complements to Yes Lender’s thriving ISO-driven sales channel,” Forman said. “Moreover, the addition of artificial intelligence to our already robust array of data-driven risk assessment tools will further strengthen our underwriting.”Last modified: July 6, 2021
Kevin Travers was a Reporter at deBanked.