Bags Secures $2.75 Million Funding to Assist Small Businesses in Financial Management

A Strategic Boost for Small Businesses

In a pivotal moment for small enterprises, Bags, a New York-based fintech company, has secured a hefty $2.75 million in funding. The investment, primarily led by the esteemed Ford Foundation, is aimed at empowering small businesses in the U.S. to better navigate the complexities of financial management and unlock growth potential.

Small businesses represent a significant portion of the U.S. economy, contributing nearly 50% of the national GDP and offering employment to millions. However, despite this crucial role, many face substantial barriers to accessing vital capital and growth opportunities, often due to inadequate financial practices. These limitations are frequently exacerbated by disorganized records, missed expenses, and poor bookkeeping.

The Problem and Bags' Solution
Bags was founded in 2020 by Daniel Taylor, William Hayden, and Ignacio Semerene, with a mission to revolutionize the financial landscape for small businesses. Through a combination of artificial intelligence and financial expertise, Bags transforms the way small enterprises understand and manage their finances.

Their approach integrates AI-powered insights with personal consultations, providing comprehensive CFO-level reporting and precise bookkeeping. This innovative model helps small business owners identify areas for improvement, rectify past errors, and ultimately strengthen their financial performance.

"We're changing the way small businesses think about money," says CEO Daniel Taylor. "By combining AI financial reviews, excellent reporting, and access to a vast pool of available credit, we equip entrepreneurs with the tools needed to operate confidently and grow their ventures."

The results speak for themselves: businesses utilizing Bags typically see an impressive 250% average growth year-over-year, are 4.5 times more likely to secure funding, and can access financing five times faster than the national averages.

Investment Impact
The new funding round not only adds to Bags' arsenal but also aims to strengthen its technical capabilities to serve small businesses better. With total capital raised now standing at $7 million, the firm is poised to broaden its service offerings and collaborate further with mission-driven lenders and Community Development Financial Institutions (CDFIs).

Roy Swan of the Ford Foundation emphasizes the importance of well-informed financial management. He notes, "We're pleased to support the Bags team as they expand their impact across the U.S. to help small businesses access essential credit."

Bags is breaking the mold of traditional bookkeeping by providing complimentary AI-driven financial reviews that detect inaccuracies in financial statements and offer corrective guidelines. This effectively sets the stage for small businesses to be better prepared, financed, and supported post-loan.

Future Vision
As part of its mission, Bags envisions a future where small businesses no longer struggle with underfunding and disorganized financial structures. Their goal is to empower enterprises with clean financial records and knowledge, thus facilitating a robust growth environment. No longer should small business owners feel overwhelmed by their finances—their innovative technology stands ready to transform their financial management.

Bags continues to take strides to advance its offerings, and with new CDFI and MDI pilots on the horizon, the company is set on revolutionizing how small businesses engage with the financial services industry.

To learn more or to schedule a free AI financial review, visit Bags’ official site.

For further inquiries, contact Bags at [email protected].