The Power of Partnerships
As reported by Buffalo Inno, SelectFI — a 15-month-old local startup — has closed a $4.5 million pre-seed round, at a $10 million post-money valuation. The company originally targeted a $2.5 million round, and later increased the goal to $3.5 million.
SelectFI's software platform is an auto dealership regulatory compliance and financing pre-qualification tool that aims to help dealerships assist customers with financing more quickly, more accurately and in greater compliance with Federal Trade Commission fair lending practices.
The pre-seed round has given the company a lot of runway to create value before having to do another fundraising round, according to CFO Matthew Dorn.
The money will go toward fueling SelectFI's expansion and technological advancements. Since January of this year, the company has been adding to its revenue month-over-month by about 20%. According to Dorn, it's on track to have "several million" of annual revenue by year-end.
SelectFI's pool of investors was made up of about 50 investors total, including institutional investors — StartFast Ventures, Launch NY, UB's Buffalo Innovation Seed Fund, Rochester Angel Network and Innovent Capital Group — private individuals and customers.
The business is adding to its team — which is now at about 23 employees — and has expanded its office space over the last several months.
Read the full story in Buffalo Inno.