London-based startup Codat has actually raised a$ 10 million financing round from Index Ventures. If you have actually ever tried to make an application for a loan for your small business or completed an application for an insurance coverage item, you understand it can be a uncomfortable and long procedure.
Codat is constructing an API that gets in touch with all the systems that hold all the pertinent financial information. That kind of details is usually spread across several systems, and small businesses frequently utilize different systems. On the other side, banks, insurance companies and more can accelerate their internal procedures and provide you an educated response for your next loan or insurance product.
Codat presently deals with 50 monetary suppliers, such as iZettle, Experian and two of the leading 4 banks in the U.K. Every month, those business process information from 10,000 small companies that have interacted with those 50 institutions.
So what type of data can you fetch using Codat’s API? It varies from accounting software, such as Xero, Sage and QuickBooks to payment terminals. Codat links to those information sources, standardizes data throughout services and after that regularly fetches brand-new information– it can be every hour, every month or whenever you desire.
Lots of banks waste a ton of time getting Excel files from their customers to review balance sheets. As numerous small businesses face some liquidity issues right now, automating data aggregation can accelerate the time it takes to protect cash on your bank account after applying for a loan.
With more accurate information and some level of standardization, banks might improve their models more easily too.
As you can see, there are some similarities between Plaid and Codat. Plaid, the fintech company that is in the procedure of being acquired by Visa for $5.3 billion, is building an API that lets you bring financial data from consumer accounts. If you have actually used Venmo, Betterment, Square’s Cash App or Robinhood in the past, those apps utilize Plaid to connect to your checking account.
Codat has a different focus as it gets in touch with accounting software and other related tools from small businesses. It is still part of a more comprehensive trend– numerous startups are creating APIs to make different applications talk the exact same language.
With today’s financing round, Codat prepares to expand to the U.S. and employ more people– there must be 100 workers by the end of the year.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.