New Frontier Funding, a company that uses generative AI to assist small and medium-sized businesses (SMBs) in securing credit and debt funding, has closed a substantial round of growth capital from the Homsher Family Office. The financial terms of the transaction were not disclosed.
This investment underscores the transformative potential of generative AI in addressing a persistent and complex issue: providing adequate capital to business owners.
Currently, 68% of U.S. SMBs are undercapitalized, while private credit funds hold over $1.3 trillion in unutilized capital. The challenge lies not in supply and demand but in effectively connecting the two.
New Frontier Funding bridges this gap by advocating for business owners, evaluating their businesses, and introducing them to the most suitable capital sources, according to the announcement.
This approach saves time and results in better capital access from reputable lenders. The company’s proprietary data and fine-tuned OpenAI language models for semantic search and agentic workflows reduce back-office workload and accurately match borrowers with lenders.
The new growth capital will be allocated to enhancing technology infrastructure, further developing AI capabilities, and making strategic leadership hires to sustain the company’s impressive 400% year-over-year growth trajectory.
New Frontier Funding’s mission centers on securing optimal credit and debt options for business growth and operations. The company combines rigorous data science and AI with extensive domain expertise, adhering to a simple credo: “do the right thing for the business owner.” This principle ensures efficient deal-making in the fragmented and opaque SMB lending ecosystem.
Established in 2015 and based in San Diego, California, the Homsher Family Office focuses on capital preservation through investments in uncorrelated alternative asset classes and direct investments in the financial technology sector.
With a long history and track record in financial services and banking, the Homsher Family Office aims to partner with management teams, providing capital, insight, and valuable relationships.
