Fundid works with SMEs that are not served by emerging companies such as Ramp, Brex

  • Fundid offers credit and loan tools to “micro-enterprises” with 10 or fewer employees.
  • Founder Stefanie Sample aims to help women-owned businesses access capital and build insights.
  • See the 12 slides the show used to raise $3.25 million in seed funding here.

Startups looking to simplify the often complex world of corporate cards have seen a boom in recent years.

Trade finance management startup Brex was last valued at $12.3 billion after raising $300 million last year. Emerging business card provider Ramp announced an $8.1 billion valuation in March after growing revenue nearly 10-fold in 2021. Divvy, a small business card provider, was acquired by Bill.com in May 2021 for approximately $2.5 billion.

But as hot as the market has gotten, Stefanie Sample said she ended up working in the space by accident.

Sample is the founder and CEO of Fundid, a new financial technology that offers credit and loan products to small businesses.

In May, Fundid announced a $3.25 million seed round led by Nevcaut Ventures. Additional investors include Artemis Fund and Builders and Backers. The funding announcement capped off the company’s first year: Sample unveiled the Fundid concept in April 2021, launched its website in May, and began raising capital in August.

“I never wanted to do Fundid,” Sample told Insider. “I never wanted to do something that was backed by companies.”

Sample lives in Missoula, Montana, and has been surrounded by entrepreneurship for over 15 years. Sample’s first business was bags created from memorabilia from marathons and triathlons. She maxed out her personal credit card to pay for a booth at the Las Vegas Marathon expo, where the bags were a hit.

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Sample had caught the entrepreneurial bug. “I loved this idea of ​​small business ownership,” he said.

Fundid fills a gap in the market

Over the years, Sample noticed that when her friends started their own businesses, they often had difficulty accessing capital and financing. When the COVID-19 pandemic hit, she researched why she was seeing news reports of women- and minority-owned businesses struggling to access Paycheck Protection Program loans.

“I really went down this rabbit hole on this issue of small business financing during the pandemic,” he said.

Sample’s rabbit hole led her into a niche that she says has yet to be addressed by high-flying corporate card startups. Fundid’s target customer is a company with 10 or fewer employees, a group that Sample says makes up a significant part of the market but has few solutions that adequately meet their needs.

“The reason we focused on this segment is when I was really trying to figure out how to get capital for female business owners, I realized that 98% of all women-owned businesses have fewer than 10 employees,” said.

Fundid offers three main solutions for small businesses: a marketplace that makes it easier for business owners to find and apply for grants, a loan product launched in April that offers what Sample calls “micro-loans,” and a business credit card that will release later this summer. . The card is based on business performance, is unsecured and does not require a personal guarantee or


credit score

.

Fundid earns money through interchange fees on the commercial card and through interest on the loans it offers.

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Sample says the grant search tool was key for Fundid to successfully attract investors. Although Sample had no prior finance experience, he used his marketing experience to design the grant search to attract potential clients and demonstrate demand to potential sponsors.

“I really leaned into it, especially with the matching grant program,” Sample said of her past experience. “We set that up, in many ways, to show venture capitalists that we are able to efficiently engage our client base and that we speak their language.”

More than 7,000 businesses have already joined Fundid’s waiting list for their corporate card after using the grant search tool and without any other marketing efforts, Sample said.

Sample and Fundid are also using customer survey feedback to inform their roadmap and future products. Sample said that 76% of respondents indicated that they do not have access to financing for their business and do not know how to obtain it.

Survey responses also indicated that business owners were not necessarily looking for large lines of credit in a loan product. What they really needed was a product that could help them smooth their cash flow as they grew their business and attracted new employees and customers. Fundid’s loan product is available to businesses with annual revenues as low as $50,000.

Fundid also seeks to help business owners answer questions they may have through their website content. Topics include tips for writing grant proposals, how to compare interest rates on different types of loans, and different uses for loan financing.

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“The most overwhelming part of being a small business owner is that all of a sudden you’re supposed to know all these things that you definitely didn’t know the day before, like what the heck an EIN number is, how filing taxes works, what to be a sole proprietorship means you have to pay taxes quarterly,” Sample said of Fundid’s decision to develop content in addition to its financial products. “We really try to simplify all of that and understand how business financing works, as well as accessing capital.”

See the 12 slides Fundid used to raise $3.25 million in seed funding here.