The Aryavarth Express
Agency (New Delhi): Baselayer, a B2B company specializing in proprietary Graph AI technology, has officially announced a successful exit from stealth mode by securing $6.5 million in seed funding. The company, led by a team of compliance and machine learning experts, has quickly gained traction, securing nearly 30 customers, including Rho and a major loan infrastructure provider, expanding its potential reach to over 25 million business accounts.
The funding round was led by Torch Capital and included contributions from Afore Capital, Founder Collective, Picus Capital, Gilgamesh Ventures, and several top financial industry executives like Eric Woodward, the former President of Early Warning Services, and Jason Mikula, among others from companies like Stripe, Brex, and Valley Bank. This influx of support, which was five times oversubscribed, highlights the market’s urgent need for innovative solutions to tackle the growing sophistication of fraud and simplify banking access for small businesses.
The traditional banking sector has struggled with the verification of small businesses during Know Your Business (KYB) processes, often bogged down by lengthy and manual reviews. Baselayer’s platform addresses these challenges by enabling banks, lenders, and payment companies to share fraud data and verify business legitimacy in real-time, dramatically reducing the KYB process time.
Jonathan Awad, CEO and Co-Founder of Baselayer, emphasized the importance of their solution in today’s market, where fraud poses an increasing threat to the growth and revenue of financial institutions. By leveraging artificial intelligence and knowledge graphs, Baselayer provides a dynamic and immediate risk assessment capability that was previously unattainable, ensuring quicker and more secure banking interactions for businesses.
The platform not only supports financial institutions in verifying new business customers swiftly but also plays a critical role in data sharing, a process highlighted as deficient by the U.S. Treasury Department. Baselayer’s infrastructure allows for pooling data and issuing real-time alerts, setting it apart from legacy credit bureaus and enhancing the security of the banking ecosystem.
Eric Woodward, a key investor and industry veteran, stressed the significance of having a reliable and scalable solution like Baselayer for small business verification, which until now, lagged behind consumer verification technologies.
Since its launch six months ago, Baselayer has integrated its services with various clients, including traditional banks and innovative business fintech platforms like Rho, which has seen considerable improvements in compliance and customer onboarding speed due to Baselayer’s technology.
With the new funding, Baselayer plans to further enhance its platform and develop additional features for its GenAI model, solidifying its position as a pivotal player in transforming financial operations and fraud management.
Founded in 2023 by industry experts Jonathan Awad and Timothy Hyde, Baselayer utilizes advanced AI to streamline business onboarding and reduce fraud risks for SMBs, thereby enhancing the overall security of the banking industry. The platform facilitates improved data sharing among financial institutions, boosting confidence and security nationwide. Backed by several top venture capitals and angel investors, Baselayer is set to revolutionize KYB processes with its innovative AI solutions. For more details, visit www.baselayerhq.com.
