Automated Funding Decisions

Capital as a Service (CaaS) is an automated funding platform that makes investment decisions by analyzing connected business metrics and performance data, replacing traditional manual venture capital processes.

Key Points:

  • Data Integration:

    • Connect company metrics
    • Link stripe account
    • Connect bank account
    • Integrate Quickbooks
    • Pull all relevant business data
  • Automated Analysis:

    • AI/LLMs analyze the connected data
    • Rank whether something's real or not
    • Perform automated due diligence
    • Compare against benchmarks
  • Automated Funding:

    • If metrics hit certain bars, money automatically deposited
    • No human intervention needed
    • Instant funding decisions
  • Benefits:

    • Removes human bias from funding decisions
    • Faster than traditional VC process
    • More objective evaluation criteria
    • No need for pitch meetings or relationship building
  • Target Companies:

    • Growth stage companies with established metrics
    • Companies with enough data to analyze performance
    • Businesses with connected financial systems

This model aims to make capital allocation more efficient by removing human decision-making and replacing it with data-driven automated processes.

GT

Garry Tan

President & CEO, Y Combinator

Hi, I'm Garry Tan. I live in San Francisco.

Find me on X at https://x.com/garrytan

I am President and CEO of Y Combinator. I was a partner there from 2011 to 2015.

I started a venture capital fund called Initialized Capital. It has just over $3.2B under management, usually funding folks very early (seed and Series A) often when it is just a few people just starting out.