Jannae Gammage couldn’t help but notice a glaring problem while working as a technology consultant for the Small Business Administration. Even as she helped companies secure loans through traditional lenders, she saw firsthand how outdated and inefficient the lending process was. The technology meant to connect businesses with banks and credit unions was stuck in the past, leaving many good businesses struggling to access the capital they needed to survive. Frustrated by the lack of modern solutions, Gammage decided to take matters into her own hands.
In 2022, she teamed up with her friend Alaia Martin to launch Cyphr, a Kansas City-based startup aimed at revolutionizing the lending process for both lenders and small businesses. Cyphr’s innovative approach lies in its ability to analyze alternative data sources and financial patterns, helping lenders make smarter, faster decisions about small business creditworthiness. The company has since become a Top 20 finalist in Startup Battlefield at TechCrunch Disrupt 2025, a testament to its groundbreaking work.
### Bridging the Gap in Small Business Lending
When Gammage and Martin first started Cyphr, their mission was clear: to create a borrower-centric experience that streamlined the underwriting process. While many companies focused solely on meeting the needs of lenders, Cyphr aimed to flip the script, ensuring that entrepreneurs could access capital more easily. The duo began building a large language model (LLM) trained on data from overlooked business owners and their financials, a move that would later prove pivotal as advancements in AI technology accelerated.
By the time Cyphr officially launched in April 2024, the product had evolved significantly. The company’s current model is built on an OpenAI foundation, fine-tuned to meet the specific needs of small business lending. This AI-driven approach not only improved the speed and accuracy of underwriting decisions but also helped lenders feel more comfortable embracing modern technology.
### The Role of AI in Modernizing Finance
Gammage points to the timing of Cyphr’s launch as a critical factor in its success. Had they gone to market in 2022, before the latest wave of AI advancements, gaining traction would have been much harder. At the time, fear and skepticism around technology in the financial industry were significant barriers. However, the pandemic had already pushed the industry toward digitization, and the emergence of AI tools made lenders more open to innovation.
Martin, Cyphr’s COO, recalls the early days of building their LLM without the luxury of advanced AI tools. “We were doing it manually,” she said, a process that required immense effort but laid the groundwork for the company’s future success. Today, Cyphr’s AI-powered platform is helping lenders make data-driven decisions while giving small businesses a fair shot at accessing capital.
### Navigating the Startup Journey
While Cyphr’s progress has been remarkable, the journey hasn’t been without challenges. Raising funds, for instance, was a mixed bag of experiences. Gammage described the process as both “easy and hard,” where unexpected hurdles popped up in places she thought would be straightforward. The company raised $1 million to date, but the money came in tranches through accelerators and pitch competitions, making it difficult to achieve catalytic moments.
Despite these challenges, Gammage and Martin have been heartened by the reception they’ve received in Silicon Valley. As two Black women from the Midwest with non-technical backgrounds, they didn’t fit the typical mold of tech founders. Yet, they found themselves well-received in the industry, a reminder of the progress being made toward greater inclusivity in tech.
### Looking Ahead to the Future
Cyphr’s ambitions extend far beyond its current achievements. The company is currently developing a platform to help businesses capitalize on opportunities tied to the World Cup coming to the U.S. in 2026. While no decisions have been made about expanding to new locations, Gammage and Martin are keeping all options on the table.
For now, their sights are set on winning Startup Battlefield at Disrupt 2025. “Even momentum requires money,” Gammage said, emphasizing the importance of securing the resources needed to scale their vision. With a borrower-centric approach, cutting-edge AI technology, and a commitment to making capital more accessible, Cyphr is poised to make a lasting impact on small business lending.
If you’re curious to learn more about Cyphr and see it in action alongside other innovative startups, consider joining TechCrunch Disrupt in San Francisco from October 27 to 29. With dozens of startups, guest speakers, and four stages of content, it’s an event you won’t want to miss.
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