Bags locks down funding to help businesses secure the bag with data-driven debt solutions

NEW YORK, October 19, 2022 /PRNewswire/ — bagsa platform for identifying and managing loans for small businesses, today announced the closing of $3 million in seed funding as part of its ongoing effort to expand affordable funding options for diverse and women-led businesses. The fintech company’s oversubscribed round was led by Slauson & Co, with participation from Connecticut Innovations and the Schultz Family Foundation’s Entrepreneurs Equity Fund, following previous investments from Altrinsic Global Advisors and angel investors Tim Armstrongowen vannatta, Edith Cooper, and André Swanston, among others. The funds will be used to expand the Bags platform’s capabilities with debt management capabilities and data infrastructure solutions for lenders.

Bags, loan discovery platform

Bags, loan discovery platform

In the US, there are 9.2 million minority-owned small businesses and 11.7 million women-owned small businesses, and these segments are growing rapidly. Yet 99% of companies will never raise venture capital, and loudly Minority Business Development Agency, minority-owned businesses are less likely to be approved for funding than white business owners with the same annual revenues. In the current environment of rising interest rates, diverse and women-led businesses need access to fair financing that is difficult to find through existing channels and unobtainable from traditional institutions.

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With bags, Formerly known as the AMP Community, various business owners are discovering the best non-dilutive ways to secure funding. Bags helps entrepreneurs obtain the working capital they need, understand the implications of leverage and manage their repayment process, all with lenders who have a vested interest in supporting the community the business is designed to serve.

“Access to capital is central to the long-term success of small businesses, and our mission is to provide underserved businesses with a clear path to fair financing with the tools they need to manage it. We help different people avoid predatory lending by meeting them where they are, in a way that they identify with and what they need,” said Bags CEO DanielTaylor. “Community, culture and cash are at the heart of everything we do, and we want to ensure millions of businesses can focus on building wealth and strengthening their local economies without worrying about where the investment will come from .”

The platform has been carefully designed to reduce time and friction in the loan application process with built-in, contextual training and detailed guides for obtaining loan approvals to secure funding. Bags is committed to offering only the best options and pre-qualifying businesses for loans from on-order lenders, including many nonprofit CDFIs committed to putting money into the community.

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“The Bags team is deeply committed to providing fair and flexible financing to millions of small businesses. They fill a key need that allows small businesses to compete and serve the nuances of their communities,” said Austin ClementsPartner at Slauson & Co. “Bags achieves for small entrepreneurs what we want to achieve as investors: economic integration and democratized access to entrepreneurship for underrepresented founders.”

Based on data from the Black Congressional Committeethe median net worth for Black business owners was 12 times higher than for Black non-business owners in 2019 Hispanic Wealth Project, Latino business owners have a median net worth five times that of Latinos as a whole. Between 2017 and 2018, growth in Latina-owned employer companies accounted for almost all (93 percent) of the growth in female-owned employer companies. This data demonstrates the power of entrepreneurship to drive wealth creation among diverse populations, and Bags’ mission is to improve access to entrepreneurship to create stronger local economies, better jobs and generational wealth.

Since 2021, Bags has helped hundreds of business owners get 100% free access to the right financing for their business. The platform includes rental options from $10,000 to $5 million, with industry-standard low interest rates and flexible terms. With funding approval rates for entrepreneurs connected through the platform, far exceeding industry benchmarks, Bags helped win the company over 5 million dollars into small businesses since 2021, including luxury lifestyle brand M65 Studios, founded by Anthony Hendricksonand droplet, a wellness beverage brand created by Celeste Perez.

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The seed round raises the overall funding for Taschen $4M. The company is led by Taylor and co-founders Ignacio Semerene and William Hayden.

To learn more about Bags and the work they do to help different business owners have an equal opportunity to succeed through access to capital, visit their website or follow them on social media @Secure_Bags.

About bags:

Bags is a credit discovery and management platform built by and for Culture. We connect diverse and women-owned businesses with fair lenders at the lowest interest rates on the market, saving small business owners time and money to get started building. Our partners are impact-driven lenders who use our platform to increase lending and approval rates for underrepresented entrepreneurs and unleash economic potential in diverse communities.

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