Bags announced $3 million in seed funding when they launch the small business loan discovery and management platform built by and for culture.
The new Bags platform is designed to help diverse, women-owned businesses get the working capital they need, understand the implications of debt financing, and manage their repayment process, all with lenders who have a vested interest in supporting the community the business is targeting to serve. The company has already helped hundreds of businesses save time and money by finding the right financing for their growth.
Founded by Daniel Taylor, Ignacio Semerene, and William Hayden, the company’s mission is to increase access to entrepreneurship in diverse communities to create stronger local economies, better jobs and generational wealth. Based on data from the Congressional Black Caucusthe median net worth of Black business owners was 12 times that of Black non-business owners in 2019. This data shows the power of entrepreneurship to advance wealth creation within the Black community.
“Access to capital is an essential element of long-term business success and, therefore, wealth creation through business ownership. We created Bags to ensure that every business can continue to grow and be sure they will find the financing they need. said the CEO of Bags Daniel Taylor.
In 2019, Taylor sold Asktipster, a social data startup, to Flowcode, without raising venture capital. After the murder of George Floyd in 2020, he teamed up with Hayden, an IPG executive, and Semerene, chief of staff of Monzo, a British fintech unicorn, to create a platform to raise rates of approval and the amount of funds disbursed to minorities and women. – owned companies.
There are 9.2 million minority-owned small businesses and 11.7 million women-owned small businesses in the United States, and these segments are growing rapidly. Yet 99% of companies will never raise venture capital and, according to the Minority Business Development Agency, minority-owned businesses are less likely to be approved for financing than white business owners with the same annual revenue. In today’s rising rate environment, diversified and women-owned businesses need access to fair financing that is hard to find through existing channels and unavailable from traditional banks.
The Bags platform connects businesses to mission-driven lenders, including nonprofit CDFIs that pledge to lend to minority and women-owned businesses at affordable rates. It’s designed to reduce time and friction in the loan application process with built-in training and step-by-step guides on how to get approved.
“We know there is money in the market that is meant to reach various groups of entrepreneurs. Our job is to help entrepreneurs and mission-driven lenders connect and ensure business owners have everything they need to succeed with debt financing,” said Haydenwho leads the company’s growth and partnerships.
From the company $3 million seed round was raised from investors including Slauson & Co, Connecticut Innovations and the Schultz Family Foundation’s Entrepreneurs Equity Fund, following previous investments from Altrinsic Global Advisors and angel investors Tim Armstrong, Owen Van Natta, Edith Cooper and André Swanston, among others. The round brings Bags’ total funding to $4 million.
“This new round of funding will allow us to reach more businesses and continue to develop the best tools to help businesses grow,” said serenewho holds the position of product manager.
To learn more about BAGS and the work they do to help diverse business owners have an equal chance of success through access to capital, visit their website SecureBags.com or follow them on social networks @Secure_Bags.