New Frontier Funding, a pioneer in utilizing generative AI to help small and medium-sized businesses (SMBs) find credit and debt funding, announced it has closed a significant round of growth capital from the Homsher Family Office.
This investment highlights the power of generative AI in production to solve a systematic and complex problem: getting more capital into the hands of business owners.
Currently, 68% of U.S. SMBs are undercapitalized, while private credit funds holds over $1.3 trillion in underutilized capital. The problem is connecting the supply and demand.
New Frontier addresses this gap by partnering with business owners, assessing their businesses, and then making introductions to the few capital sources most likely to fund their companies. This process saves time and results in better capital from high-integrity lenders.
The company utilizes its proprietary data and fine-tunes OpenAI’s language models for semantic search and agentic workflows to reduce back-office work and accurately match borrowers with lenders.
This growth capital will be used to fund technology infrastructure, continue the development of AI, and make additional leadership hires to keep the business on its 400% year-over-year growth trajectory.
The terms of the deal were undisclosed.
