OneAM, a startup that aims to help provide small and midsize B2B suppliers with "fairer and more efficient" access to capital, has raised $4.7 million in seed funding, it tells This Week in Fintech exclusively.

TTV Capital led the financing, which included participation from Correlation Ventures, ThirdStream Partners, and other early-stage private investors. The company claims to be among the first to use artificial intelligence and machine learning for underwriting fragmented receivables at scale. 

CEO Ksusha McCormick and CPO Charlotte Ng founded OneAM in 2024 to not only give these smaller B2B suppliers greater access to capital but also to turn working capital into an investable asset class for quantitative investors.

"Small and midsize suppliers have been at a disadvantage when it comes to securing loans or leveraging early pay solutions. Since their receivables are varied, it has been historically difficult to underwrite them at scale, leading to unfavorable payment terms," McCormick told This Week in Fintech. "As a result, these businesses – which generate over $4 trillion of revenue annually – are left with unpredictable cash flow."

To solve this problem, OneAM has created infrastructure that gives hedge funds, private credit funds, pension funds, and other “sophisticated” institutional investors the ability to underwrite fragmented receivables at scale, using AI/ML and other advanced tools. The result, according to McCormick, is that these B2B suppliers can get "fairly priced working capital." At the same time, she added, investors "gain highly diversified exposure to a large but difficult-to-access asset class" via OneAM’s Early Pay platform.

The startup generates revenue by charging a flat fee to the capital providers for access to its origination engine and infrastructure. OneAM, McCormick notes, does not earn more from higher-cost financing. For the suppliers, there are no onboarding fees, late fees, or hidden fees, she added.

The company operates across multiple industries, including technology, energy, media, and professional services, with plans to expand into new categories.

OneAM differs from Pipe and other similar types of fintechs in that those companies provide revenue-based finance, which is typically more expensive in APR terms than traditional receivables finance, according to McCormick.

Those are not as cost-effective a solution for businesses on the upper end of the SMB range, which is where OneAM focuses, in McCormick's view.

"These businesses value ease and speed but not at the expense of affordability," she said.

OneAM competes mainly with factors, also known as factoring companies. As McCormick explains it, factors are specialized financial companies that provide working capital to businesses by purchasing their outstanding invoices. A business sells its invoices to the factoring company at a discount, which provides immediate cash. The factoring company then collects the full amount from the customer.

"Some factors engage in unethical and predatory business practices," she said. "There are some fintech factors out there as well, but the cost of financing they provide is typically very high."

Gardiner Garrard, co-founder and managing partner of TTV Capital, said that OneAM is solving a problem that has “stymied” suppliers and capital providers for decades.

“We’ve known for a long time that suppliers need a better way to obtain access to working capital, but until recently, the technology hasn’t been sophisticated enough to address it,” he told This Week in Fintech. “And since OneAM’s business model is fee-based, they don’t benefit from increased financing costs, which means suppliers get fairer terms for early payments.”

In his view, OneAM represents the “future” of working capital for small to midsize suppliers.

“Once cash flow is unlocked,” said Garrard, ”these businesses have more potential to thrive.”

OneAM plans to use its new funding to expand into new verticals, as well as to continue to develop advanced pricing, fraud prediction, portfolio management, and risk management capabilities for its network of capital providers.