Automated Funding Decisions
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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:
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Data Integration:
- Connect company metrics
- Link stripe account
- Connect bank account
- Integrate Quickbooks
- Pull all relevant business data
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Automated Analysis:
- AI/LLMs analyze the connected data
- Rank whether something's real or not
- Perform automated due diligence
- Compare against benchmarks
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Automated Funding:
- If metrics hit certain bars, money automatically deposited
- No human intervention needed
- Instant funding decisions
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Benefits:
- Removes human bias from funding decisions
- Faster than traditional VC process
- More objective evaluation criteria
- No need for pitch meetings or relationship building
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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.
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.