Our $2.4m Seed Round to Reinvent Corporate Due Diligence

Our $2.4m Seed Round to Reinvent Corporate Due Diligence

And say hello to the TrueBiz Risk Score 

At TrueBiz, we’re on a mission to reinvent corporate due diligence for financial services providers. We do this by enabling FIs to assess the legitimacy and risk of any business across hundreds of signals via a single API.

Despite almost all B2B financial service providers operating online, the process of verifying new corporate clients remains painfully manual and worryingly open to fraud. 

So today, we’re thrilled to announce that we've raised a $2.4m seed round to aid that mission. And we’re launching a brand new product: TrueBiz Risk Score. 

The round was led by Flourish Ventures, with participation from Y Combinator, The Fintech Fund, Homebrew, and dozens of leading founders from across the fintech ecosystem. 

“We are excited to partner with Danny, Max and the TrueBiz team in their mission to become the trusted source for business identity data. We are in the very early innings of KYB and significant demand by businesses coupled with regulatory developments both in the U.S. and globally provide significant tailwinds for the TrueBiz solution”  Emmalyn Shaw, General Partner at Flourish Ventures.

The current situation: a challenging environment for B2B fintechs

Existing due diligence processes remain heavily manual and often involve reviewing a wide range of public and private sources, including a company’s website, social media pages and review sites. It is a process that is slow, costly (from both a staffing and conversion perspective) and often plagued with biases. 

Meanwhile, all this comes at a time of intense scrutiny and skepticism over the industry’s ability to prevent fraud, following accusations of abuse of the Paycheck Protection Program (PPP), with Congress accusing fintechs of reaping “billions in fees from taxpayers while becoming easy targets for those who sought to defraud the PPP”.

This situation has resulted in a challenging environment for both financial service providers and the millions of legitimate businesses that vitally require their services.

TrueBiz is working hard to change this, and with the launch of TrueBiz Risk Score, we can be even more impactful.

Validating a company’s legitimacy is complex. Enter: TrueBiz Risk Score

TrueBiz Risk Score allows providers to conduct a mass search for indicators of risk versus authenticity. We incorporate hundreds of signals from across a company’s online and offline footprint – all with one API.

Using TrueBiz’s configurable decision engine, it then groups this data into Risk Indicators (i.e. areas to conduct further research) and Validity Indicators (i.e. areas providers can feel confident are not worrisome).

Users can customize the process to configure which signals they deem a Risk or Validity indicators. For example, a company operating in a certain prohibited industry may be deemed a Risk Indicator. However, should a company's website have a lot of traffic this may be flagged as a Valditity Indicator.

This not only gives TrueBiz customers a fast and robust way to assess which clients to reject or approve, but also to verify that said company is what it claims to be. 

What’s next?

We’re thrilled to have such talented and forward-thinking investors join us on this journey. Not only will this funding round help us continue to grow and expand our team, it will accelerate our product innovation to help financial services companies make scalable and accurate decisions about which companies they work with. 

Above all, we’re excited to enable more businesses to access the financial services that empower their growth and our economy.

Thank you to everyone who has supported us so far. We can't wait to see what we can accomplish together in the years ahead.

Danny Hakimian & Max Morlocke 

To find out more or to book a demo, get in touch.