cyphr at TechCrunch Disrupt 2025: Simplifying Small Business Lending
The Genesis of Cyphr: Bridging the Lending Gap
Jannae Gammage, while working as a technology consultant for the Small Business Administration, observed a critical issue. Companies seeking capital often faced obstacles accessing funds through conventional channels like banks and credit unions.
She recognized that the connection between lenders and businesses was hampered by outdated processes, particularly in the realm of technology. This realization sparked a desire for innovation.
Identifying a Problem and Forming a Partnership
Gammage expressed her concerns, stating, “I was inside the mess, watching good businesses die, while trying to navigate legacy workflows.” She found a lack of suitable technological solutions to address this challenge.
Driven to find a solution, she collaborated with Alaia Martin, an old friend. Together, in 2022, they initiated the development of Cyphr, a Kansas City-based company.
Cyphr's Solution: AI-Powered Lending
Cyphr focuses on streamlining the lending process for both lenders and small businesses. The company is a Top 20 finalist in the Startup Battlefield competition at TechCrunch Disrupt 2025.
The core of Cyphr’s offering lies in its analysis of alternative data sources and financial trends. This allows lenders to make more informed decisions regarding the creditworthiness of small businesses.
Evolution and the Impact of Artificial Intelligence
Since its initial launch, Cyphr has undergone several refinements. However, recent advancements in artificial intelligence have been instrumental in shaping the product into its current form.
The product officially entered the market in April 2024. Gammage, the CEO, explained their initial goal: “How can we make underwriting smarter, faster, so that these entrepreneurs get access to capital?”
They aimed to create a borrower-focused experience, differentiating themselves from competitors who primarily prioritized lender needs.
Building an AI-Native Platform
The founders began constructing a Large Language Model (LLM). This LLM was trained using data from business owners who were often overlooked and their corresponding financial records.
This approach was designed to assist lenders in evaluating potential partnerships with various companies. Martin, the company’s COO, described the early stages: “We were doing it manually.”
Even before the latest AI breakthroughs, they were committed to this process. Currently, their model is built upon an OpenAI model, which has been specifically fine-tuned to meet their requirements.
The Role of AI in Lender Adoption
The recent progress in AI not only enhanced their product but also increased lenders’ willingness to collaborate with Cyphr. The financial sector was already undergoing a shift towards digitization and modernization following the COVID-19 pandemic.
Gammage noted, “Now you add in this AI, where they’re using it on a daily basis, it feels comfortable.” She believes that the familiarity with AI has reduced resistance to adopting new technologies.
She further stated, “If we had [gone to market] in 2022, it definitely would have been a lot harder to get buy-in, just because of the fear around technology and AI and the status quo.”
Funding and Future Plans
To date, the company has secured $1 million in funding. Gammage described the fundraising process as both challenging and surprisingly straightforward.
She observed that some aspects were easier than anticipated, while others proved more complex. A particular challenge was the staggered nature of their funding, received through accelerators and pitch competitions.
“It’s very hard to have catalytic moments when you’re receiving your cash injections that way,” she explained.
Overcoming Barriers and Achieving Representation
Martin expressed initial concerns about fundraising as two Black women with non-technical backgrounds from the Midwest. “We are not what you think of when you think of a tech founder,” she acknowledged.
However, they were met with a positive reception in Silicon Valley. Gammage added, “I’m so grateful we were able to raise because I know it’s less than 1% of us that can say that.”
Looking ahead, Cyphr is developing a platform to connect businesses with opportunities related to the upcoming World Cup. The founders are also considering potential new locations for the company, though no decisions have been finalized.
“We are excited about the future of the company,” Gammage said, emphasizing that winning Disrupt’s Battlefield would significantly contribute to achieving their objectives. “Even momentum requires money.”
Learn more about Cyphr and other innovative startups at Disrupt, October 27 to 29 in San Francisco. Explore pitches, presentations, and insights from industry leaders on four different stages. Learn more here.