Fintech
This Emerging Fintech Powerhouse Is Unstoppable; How Cyphr Models What’s Possible With the Right Support
On the road to closing what is believed to be the largest pre-seed investment raised by two Black women in Missouri fintech, the cofounders of Kansas City-based Cyphr embraced the challenges they faced and overcame them, Jannae Gammage said.
“I always knew that raising money as two Black women was going to be a struggle for us,” explained Gammage, CEO of Figure along with co-founder and COO Alaia Martin. “The questions were sometimes humiliating and our due diligence process was longer. We embraced it and kept our eye on the prize.”
Cyphr’s momentum is further fueled by partnerships with fintech giants such as Visa, MasterCard, Bank of America and PNC, he said, noting that such partnerships have been instrumental in the startup’s rapid growth since its inception. in 2022 as Foresight.
“Major industry players either support us or have invested in us,” Gammage said.
Alaia Martin, Cyphr, speaks during a launch event for Cypher at Plexpod Flaschube in downtown Kansas City in June; photo by Taylor Wilmore, Startland News
Jannae Gammage, Cyphr, speaks alongside co-founder Alaia Martin in June during a launch event for Cypher at Plexpod Flaschube in downtown Kansas City; photo by Taylor Wilmore, Startland News
An innovative automation platform designed to redefine the lending process for small and minority-owned businesses, the company has quickly evolved into a data giant capable of instantly deciphering credit risk, fraud, and bias—hence the name Cyphr.
Its flagship product, Cyphr Forge, leverages a language model specifically focused on cash flow analysis. This innovation ensures that financial health is the deciding factor in lending decisions, removing bias and assumptions from the equation, Gammage said.
“A big part of our mission is focused on minority small business owners and financial inclusion,” he said. “The most important metric for lending is ability to repay, so Cyphr Forge translates raw financial data into actionable information and makes it a format that lenders can use.”
Supported by the community
Jannae Gammage, Cyphr (formerly Foresight), gives a keynote speech during a November 2014 LaunchKC presentation; photo by Tommy Felts, Startland News
In addition to financial support, Cyphr has received mentorship and support from Kansas City-focused organizations such as LanciaKC AND Pipeline Entrepreneurs —groups dedicated to taking early-stage startups to the next level, Gammage said.
“LanciaKC gave us clients, money, and now they use Cyphr for their application process,” he said. “Pipeline Entrepreneurs helped me shape our initial idea into what it is today.”
Cyphr was recently recognized with awards in Kansas City, including receiving the KC Chamber’s Emerging Business of the Year award and the Keystone Innovation District’s Scale Up Award.
“Vicky (KC Chamber small business director) connected us, opened her network and made us successful from the start,” Gammage said at Cyphr’s launch party.
Jannae Gammage, Cyphr, smiles during a July panel discussion at an event for the Entrepreneurial Teacher Accelerator, hosted by Startland in partnership with the Ewing Marion Kauffman Foundation; photo by Taylor Wilmore, Startland News
Coming out later?
Cyphr’s trajectory from 2022 to its official launch this summer is reflected in its growth of its staff from three to 16 in just six months. Looking ahead, Gammage is optimistic about Cyphr’s future and its potential to scale and then exit.
“We’re already talking to large organizations about purchasing Cyphr when we hit certain milestones, which is fantastic,” he said.
As Cyphr continues to innovate and expand, Gammage said, it represents a beacon of possibility for other Black female entrepreneurs, who should never place limits on what they can accomplish, especially when it comes to raising money and capital for their businesses.
“We definitely had to jump through hoops to get it done and it’s not always fair, but it’s the reality until more things like this happen,” she said, adding that she hopes Cyphr can serve as an inspiration. “Now other black women can see that and take that shot.”