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 specially trained AI algorithms to accelerate the loan application and origination process. It says 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 it features a chat-based assistant that can intelligently discuss loan files with officers and respond to applicants’ queries in natural language.

Casca says it 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.

“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,” Haffer said.

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 toward 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.”

Photo: Casca