Blooma Uses AI and Machine Learning to Enable Commercial Real Estate Lenders to Reduce Loan Origination Time and Cost While Improving Deal Analysis
SAN DIEGO – November 03, 2020 – Blooma, the leading digital underwriting solution for commercial real estate lending, announced that the venture capital firm Nyca Partners has invested in the Company’s latest round of funding. Since its launch in 2019, Blooma has successfully deployed its engineering, operations and marketing/sales infrastructure to release its highly anticipated artificial intelligence and machine learning platform in December 2019. Many leading financial institutions have already become users in the past nine months, which is what caught the attention of Nyca.
During the summer, Blooma raised $3m in additional capital from Nyca. While CRE originations virtually stopped in March when COVID hit, it became more important than ever for lenders to understand how the new environment was affecting the loans they are currently servicing. Blooma has been able to use the capital to speed up time to market while continuing to invest in product that helps CRE lenders automate how they analyze existing loan portfolios and originate new loans. In September, Blooma saw origination dollar volume double in its platform, active users increase by 122%, and new lender onboarding activity grow by 400% from August.
“Blooma is innovating in a space that has seen very little technological advancement,” said Hans Morris, founder of NYCA Partners and long-time Citigroup banker and former President of Visa. “Their AI team, in conjunction with commercial lending experts, developed a platform that vastly improves a slow, labor-intensive, and imprecise system. It automates the underwriting process, speeds up deal assessment and provides portfolio analytics to greatly mitigate risk — in an environment in which risk is constantly evolving. It is super-impressive, and we are excited to be part of it.”
“We’re thrilled to have Nyca on board,” commented Blooma co-founder and CEO, Shayne Skaff. “We were instantly drawn to the organization’s intellectual capital. Nyca brings to bear a distinguished group of financial and technology advisors who have exceptional breadth and depth of experience in our industry, which has already proven to be invaluable.”
Blooma’s primary customers are lending organizations with $1 billion or more in commercial real estate assets, such as commercial and private banks. Blooma customers subscribe to the platform, enabling customization that meets their precise requirements for borrower profiles, compliance preferences, sales pipeline management, determination of risk and more.
Nyca Partners is a venture capital firm exclusively focused on applying innovation in financial services into the global financial system. Their rich experience and deep connections in both finance and technology offer a unique perspective and ability to help entrepreneurs transform payments, credit models, digital advice, and financial infrastructure. The organization strives to form truly collaborative partnerships, offering both investment capital and expert advice. The Blooma investment team is comprised of Hans Morris and Jeremy Solomon. You can follow Nyca on Twitter @nyca or our website at www.nyca.com. To find a full list of our portfolio companies please visit www.nyca.com/portfolio.
Founded in 2018 and based in San Diego, Blooma drives a faster and more intelligent commercial real estate lending experience through the use of a unique digital underwriting platform driven by artificial intelligence and machine learning. Blooma’s AI platform helps lenders reduce loan origination time and cost and perform a more comprehensive analysis of their transactions. Integrating with dozens of third party market data providers, Blooma automatically analyzes asset and borrower data and continuously tracks and audits loans or entire portfolios in real time, providing lenders with early indications of risk. This unique approach reduces commercial loan origination time and costs by as much as 75% and significantly improves time to revenue for private and commercial banks and other lending organizations. Blooma has achieved both Service Organization Control 1 and 2 compliance. More information is available at http://blooma.ai/.
Duncan King Communications LLC