Pagaya, a fintech startup that uses proprietary artificial intelligence to allow institutional investors to access new asset classes like consumer credit, raised a $14-million Series B round from venture capital fund Oak HC/FT and former American Express Company AXP CEO Harvey Golub.
Institutional Interest
Former executives of financial institutions supporting fintechs is nothing new, but a former charge card leader backing a startup offering access to new asset classes is a development. The Oak HC/FT partner who invested in the round, Dan Petrozzo, was also formerly global head of investment management technology at Goldman Sachs Group Inc GS, meaning there’s interest from institutional leaders in the AI tech Pagaya has built.
“Even today with an increase in the use of technology in underwriting, there’s a gap between institutions and good borrowers, which limits consumer access to the right capital,” Golub said in a press release. “Pagaya is closing that gap with their AI.”
What’s Next
Pagaya said it plans to use the funding to grow its team of data scientists and AI engineers, and hopes to add access to new asset classes “in the coming year.”
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