Prism Data, which provides credit-scoring data and analytics that help lenders assess borrowers, raised a $20M Series A led by Story Ventures

Credit assessments for loans will improve, enabling more approvals for consumers and small businesses.

Prism Data, a company specializing in credit-scoring data and analytics that leverage cash flow underwriting, has secured $20 million in Series A funding. The round was led by Story Ventures, with additional participation from FINTOP, Core VC, Obvious Ventures, 1st & Main Growth Partners, and Mana Ventures. This funding follows a $5 million seed round in 2023, bringing Prism's total raised to over $25 million. The company's cash flow underwriting technology analyzes real-time banking history to assess creditworthiness, aiming to provide a more complete picture than traditional credit reports. Prism reports a 100x growth in API volume over the past two years, indicating rapid adoption by major financial institutions, including three of the top five fintech lenders and six of the top ten digital banks in the U.S. The new investment will fuel further technological development, expansion into new markets, and enhancements to their AI-powered transaction categorization engine, REFRACT™.

The widespread adoption of cash flow underwriting, highlighted by Prism Data's significant funding round, signifies a major shift away from traditional credit reporting. This move is driven by the increasing complexity of consumer and small business finances, including gig economy income and diverse borrowing patterns that static credit reports fail to capture. As more lenders embrace this dynamic approach, it suggests a future where credit decisions are more accurate and inclusive, potentially reshaping access to capital for millions.

Prism's introduction of REFRACT™, an AI-powered transaction categorization engine, underscores the critical role of advanced AI in modern financial analytics. This technology enables granular analysis of banking data, offering lenders deeper insights into borrower behavior and risk. The company's focus on continuous AI development and data expansion positions it to adapt to evolving financial landscapes and new product types, setting a new standard for predictive credit intelligence.