Casca Secures $29M to Revolutionize Loan Origination with AI Technology

Casca gets $29M to bring AI-native loan origination tech to local banks - SiliconANGLE

Casca gets $29M to bring AI-native loan origination tech to local banks A startup called Cascading AI Inc. said today it has closed on a $29 million Series A funding round to support the expansion of its artificial intelligence-native loan origination platform, bringing its total amount raised to date to $33 million. Today's round was led by Canapi Ventures and saw support from customers including Live Oak Bank, Huntington National Bank and Bankwell Bank, as well as Y Combinator and Peterson Ventures, which originally participated in the startup's seed funding. Casca, as the company prefers to be known, was founded in 2023 by a team of AI and banking experts and aims to transform the way loans are handled. Its platform is aimed at smaller banks, and says it can process and fund commercial loans up to 10-times faster than competing financial technology platforms, and as much as 30-times faster than traditional banks. The startup does this by using especially trained AI algorithms to accelerate the loan application and origination process. It says that its automated document collection and processing tools can save the average loan officer around 20 hours per week through its ability to read up to 10,000 pages of documents in just five minutes. It can assess applicant's creditworthiness in seconds to offer instant pre-qualification for loan applications outside of business hours, and features a chat-based assistant that can intelligently discuss loan files with officers, and respond to applicant's queries in natural language. Already, Casca has made strong inroads with a number of small business lenders and Federal Deposit Insurance Corporation-insured banks, and Live Oak Chief Executive and Chairman Chip Mahan has become one of its biggest fans. "Casca simplifies and accelerates our lending processes while equipping us with the insights needed to build lasting relationships," he said. "The tangible value Casca has demonstrated gives us confidence to invest in their future." Casca co-founder and CEO Lukas Haffer (pictured) said AI is rapidly becoming central to bank's efforts to win over small businesses and build up stronger relationships with them. By shaving off weeks in loan processing times, they're better able to retain borrowers who would likely turn to fintechs or bigger, nationwide banks that can provide the capital they need at greater speeds than they traditionally could, he explained. "We're driven to be a force for good, using technology to make capital more accessible to small businesses and fuel the American Dream," Haffer insisted. "Partnering with the top SBA lenders and key industry players, we've built a platform that fully automates commercial loans in record time, setting a new industry standard." Today's round, which comes just 15 months after Casca's seed funding raise, will help the startup to scale its platform and expand its team with a view towards accelerating its go-to-market efforts. Canapi Ventures co-founder and General Partner Neil Underwood said Casca stands out in many ways. "It has worked alongside top AI researchers and within banks themselves to simplify business lending using responsible AI and bank-grade underwriting," he said. "With Casca, local financial institutions become the lender of choice, offering more affordable rates and keeping capital within the local community."

Casca raises $29m for AI-based loan origination platform

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Casca customers Live Oak Bank, Huntington National Bank, and Bankwell Bank joined the round, alongside Y Combinator and Peterson Ventures, bringing the startup's total funding to $33 million. Founded in 2023 by banking IT experts and AI researchers from Stanford University, Casca claims that its platform funds commercial loans up to 10 times faster than other fintechs and 30 times faster than industry averages. The new money will be used to scale its operations, expand its team, and accelerate go-to-market efforts. Neil Underwood, co-founder and general partner, Canapi Ventures, says: "With Casca, local financial institutions become the lender of choice-offering more affordable rates and keeping capital within the community. It's a big step for banking, and we're proud to be part of it."