Credit modeling in today’s world is fundamentally broken. Traditional underwriting approaches are inefficient and fraught with human bias and error. New entrants have leveraged machine learning algorithms to drive efficiency but have taken a “black box” approach that prohibits transparency. How do you know if a model is favoring certain groups over others? How do you know you’re abiding by fair lending practices? Who will be deprived access to capital as a result of model bias?
We believe a new approach is needed to ensure performance and fairness of these credit models. You can’t change what you can’t measure and Stratyfy is providing the transparency and control needed to transform the way the financial services industry evaluates these life changing decisions.
Stratyfy’s solution is a machine learning platform that leads with transparency and reduces model bias by identifying drivers of financial decisions. Stratyfy provides the two sided benefit of broadening access to capital for creditworthy borrowers and increasing the universe of customers that financial institutions can profitably lend to. In short, Stratyfy is demonstrating that you can do well while doing good.
We’ve had the privilege of working with this amazing company since our initial investment in 2021 and could not be more excited to deepen that partnership by co-leading this financing round with our Limited Partner, Truist Ventures.
Truist was an important part of our diligence process back in 2021, and the Truist team has continued to engage with Stratyfy over the past 12 months, culminating in both a commercial and investment partnership. We see the immense value that Truist brings to the table and could not be more excited to work together supporting Stratyfy.
Over the course of our investment in Stratyfy, we have seen the company find product/market fit, sign key partnerships that will catalyze future growth, and operate with incredible efficiency that is ingrained in the DNA of the company. We believe Stratyfy has built a resilient business model that has strong counter-cyclical tailwinds and can thrive across business cycles.
In addition, Co-Founder and CEO Laura Kornhauser has been able to attract top tier, diverse talent throughout the organization. From their COO, Deniz Johnson, to their EVP of Inclusive Credit, Shannan Herbert, Stratyfy has developed a track record of attracting industry leaders who are unified around the company’s mission. The leadership team at Stratyfy has laid the foundation to drive market leading growth for years to come.
We are privileged to be along for the journey!