This emerging fintech powerhouse is on a roll; how Cyphr models what’s possible with the right backing
July 18, 2024 | Taylor Wilmore
On the journey to closing what’s believed to be the largest pre-seed investment raised by two Black women in the fintech industry in Missouri, the co-founders of Kansas City-based Cyphr accepted the challenges in front of them and rode through noise, said Jannae Gammage.
“I always knew that raising money as two Black women would be our struggle,” explained Gammage, CEO of Cyphr alongside co-founder and COO Alaia Martin. “Questions were sometimes demeaning, and our 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 like Visa, MasterCard, and Bank of America, she said, noting such collaborations have been instrumental in the startup’s rapid growth since its initial inception in 2022 as Foresight.
“Those top players in the industry support us or have invested in us,” Gammage said.
An innovative automation platform set to redefine the lending process for small and minority-owned businesses, the company rapidly evolved into a data powerhouse that immediately deciphers 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 for lending decisions, taking biases and assumptions out of the equation, Gammage said.
“A lot of our mission is built around minority small business owners and financial inclusion,” she said. “The most important metric for lending is the ability to pay back, so Cyphr Forge translates raw financial data into actionable intelligence and makes it a usable format for lenders.”
Backed by community
Jannae Gammage, Cyphr (formerly Foresight), gives her pitch during a November 2014 LaunchKC showcase; photo by Tommy Felts, Startland News
In addition to financial backing, Cyphr has received mentorship and support from such Kansas City-focused organizations as LaunchKC and Pipeline Entrepreneurs — groups dedicated to taking early-stage startups to the next level, Gammage said.
“LaunchKC gave us customers, money, and they use Cyphr now for their application process,” she said. “Pipeline Entrepreneurs helped me shape our initial idea into what it is today.”
Cyphr also recently has been recognized with accolades in Kansas City, including being awarded KC Chamber’s Emerging Business of the Year and Keystone Innovation District’s Scale Up Award.
“Vicky (KC Chamber’s director of Small Business) connected us, opened up her network, and ensured that we were successful from the very beginning,” said Gammage at Cyphr’s launch party.
Jannae Gammage, Cyphr, smiles during a July panel conversation during an event for the Entrepreneurial Teacher Accelerator, organized by Startland in collaboration with the Ewing Marion Kauffman Foundation; photo by Taylor Wilmore, Startland News
Exit ahead?
Cyphr’s trajectory from 2022 to its official launch this summer is reflected in the growth of its staff from three people 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 having conversations with large organizations about buying Cyphr when we hit certain milestones, which is great,” she said.
As Cyphr continues to innovate and expand, Gammage said, it serves as a beacon of possibility for other Black women entrepreneurs to never put limits on what they can achieve — 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 this and make that attempt.”
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