Funding platform startup Hum Capital today announced the launch of SmartRaise, a service that provides growth-stage companies with quick financing terms based on the financial performance data they provide Hum.

An expansion of the Intelligent Capital Market service provided by Hum, which is incorporated at Capital Technology Solutions Inc., SmartRaise gives founders the option to receive preliminary deal terms automatically for debt financing that they qualify for from an institutional partner. The preliminary deal terms are based on the company data they were already uploading into Hum’s platform.

For institutional credit investors, SmartRaise allows them to programmatically extend financing terms to companies based on financial data connected to Intelligent Capital Market from their financial systems of record. The data-driven approach is said to allow investors to scale up their private capital exposure more efficiently without dramatically growing their deal origination team.

SmartRaise investors set up specific criteria, or deal parameters, on ICM, which are automatically applied when a company connects its financial systems for analysis. Companies meeting an investor’s SmartRaise criteria will automatically receive notification that they have preliminary terms for review.

For qualifying companies, SmartRaise creates an expedited financing option that aligns with their financial profile and growth needs. As offers created through SmartRaise are more programmatic in nature, they offer a streamlined diligence process that can fund a company in as little as one week, depending on the investor and deal size. There’s no cost to a company to explore SmartRaise terms with participating investors.

“With the abundance of company data to evaluate investments, 2023 is the year institutional capital will move to streamline the deal process and make more direct, data-driven investments,” Blair Silverberg, Hum Capital’s co-founder and chief executive, said in a statement. “This shift has already happened in the public markets where 50% of assets are passively managed; SmartRaise now delivers similar efficiencies to companies and investors in the private markets.”

Hum launched its ICM in 2021 and has helped companies secure more than $600 million in capital commitments. The company has found that, on average, companies that connect their financial data systems for analysis close their fundraising processes 50% faster than companies that manually provide investors with data files.

Hum Capital itself is a venture capital-backed startup, having raised $35 million since being founded in 2019, according to Crunchbase. Investors include Cowen and Co. LLC, Invesco Private Capital Inc., Future Ventures LLC, Wavemaker Partners LLC and Partech International SAS.

Deals closed through the Hum Capital platform include a $13 million round for EatStreet Inc., $43 million for P97 Networks Inc. and $1.5 million for Blackthorn.io Inc. Venture capital firms using the platform to find companies to invest in include TriplePoint Capital LLC, Peak Rock Capital LLC, WTI Inc. and Multiplier Capital LLC.

Image: Hum Capital