Split raises venture funding to give consumers a net-90 float on bills — already crossing $80M in originations

Speaker 2: and security. We have our next guest in the waiting room. We have a few other changes to the schedule. We'll be moving on to Andrew from Split. Hey, Andrew. How are doing? What's going on? Good. Thanks for having me. Welcome to the show. Since this is your first time in show Great to finally meet you, by the way. I've heard heard a lot about you from We we know a lot of people in common. Yeah. I know. A bunch of people that Andrew used to work with used to work on Party Round. Oh, that's right. Amazing. Yeah. Well, good to have you here. Let's let's start with a little bit of an introduction of the company, and then I wanna hear the news.

Speaker 10: Sure. Yeah. I mean, I think there's there's two parts to the story. There's sort of the what we do and and then how we do it, and they're they're very different. I think that what we do is quite simple. We like to say that banks move money and we move time. Mhmm. And the basic premise of the company is essentially to create, like, a net 90, but for consumers. Sure. So we're start with this idea that, you know, what do wealthy people have first and foremost? It's time. Time to make, you know, good financial decisions and avoid bad financial decisions. Right? Everyone uses debt, but the wealthy can use it to their advantage. And, you know, people who are less less well off often get trapped in this sort death spiral. So the idea is how do we create sort of, you know, essentially, room float around an average American whereby to the extent that they're paying for things and, you know, the biggest things people pay for is sort of housing and autos and, you know, insurance, student loans. How do we let them sort of pay it on their schedule? And, you know, right now, we're at thirty days. Our goal is to get to ninety Ninety days of sort of float where they can shift all these dates around. And what we found so far, and we now have a million people using us, is that this is actually all financial anxiety is downstream from this. Once you have a little bit of room, and it doesn't it doesn't have to be a lot, just just a couple of weeks to kinda move your bill payments around so that a better sort of cycles with your paychecks and other source of income, you just breathe better. Yeah.

Speaker 2: What does actual customer adoption look like? What is it where does it come from? Are is this direct response advertising? Are you partnered with mortgage lenders and Yeah. And rental buildings to offer this service? Do is there some integration that you need on this other side? We've seen there's been companies that have done, like, pay your rent on a credit card or pay your mortgage on a credit card, and that's always felt like sort of crazy. Like, I can't imagine being like, okay. I I have to take a 3% cut now. So how have you solved all of that?

Speaker 10: Yeah. So this is in the sort of the what. There's two pillars to, I think, what we've built, and and it's taken us some time to build it. So I think for the first two years of our existence, I think we're more like a lab. But we built our own foundation model, first and foremost, for underwriting, and it's a cash flow based model. It's entirely trained on in house data, and then we apply deep learning to it. So, you know, the performance is pretty stunning. I think we're the best cash flow underwriting

Speaker 2: model in the country today, and I think AI underwriting smart about the future. That, do you mix in credit card, like, credit data, credit reports? Because I I imagine that those will at least be helpful a little bit. They're not helpful at all, or is that a cost savings thing? We

Speaker 10: feel we feel very strongly that it's not helpful at all, and we tried everything. We tried we started with FICO. We tried every off the shelf model. Wow. Yeah. Unless you put your own money at risk and you train your own model, it kinda gets into that sort of sovereign model Sure. World. Right? You really don't get the alpha. Interesting. FICO, I mean, it's crazy. I I you know, I didn't set out to sort of try and destroy FICO, but just increasingly, you start to realize how ridiculous the whole I mean, I you know, it's it's a sacrifice we might have to make. But but, know, what it is, if you just think about it, it's it's it's a rating. Right? It's like you're an Uber driver, and you're just like you're you're driving people around. In this case, like, you're doing deals with lenders, and if a lender likes you, they give you, you know, five stars. If they don't like you, they give you star. Sure. Sure. But because it's the only way that people get access to credit throughout their entire lifetime, it's really, really impactful. And I think increasingly, what we find and we believe is that it's outdated. And the people that suffer is anyone 40. So our model is really tuned to what we think is sort of like the core constituency these days, which is particularly millennials. By the way, millennials are 36 now, right? Yeah. On average. So our customers are sort of in the, you know, 35 to 40. They're most sort of productive period of our life where, like, know, they make more money every single year, which you'd think would be amazing for your credit score. But as you guys know, it isn't. Not unless you're you're doing deals all the time. This this company sounds like a working capital nightmare for you.

Speaker 2: Where is the money coming from? Is it venture dollars that wind up

Speaker 10: dealing in creating this float, or do you have a lender or a bank that can We have we have have sort of a layer cake of facilities in that sense. I think our our capital search is very similar to, like, of a BNPL, like, an Affirm, and Max Lechman is an investor. Sure. So, you know, we've learned we have some great people that have sort of set us on this path. Yep. I actually wanna go back to just really quickly. I do realize I didn't address the the distribution piece. Yeah. The thing that we created that's really kind of fun. So you again, I'll use Affirm as an example. You probably heard of this concept of, like, a credit backed debit card. Yeah. Right? We use a debit card, but it has actually a little bit of float attached to it, and it's sort of dynamic. You could swipe it even if you don't have money on it. It'll sort of sort of stretch to fit whatever you're trying to bill. So we built this for ACH. Sure. And it's really nutty. So so you had to ask her, do we partner with anyone? We don't. You can use split pay to pay any bill anywhere that takes ACH. Mhmm. And what it will do is we will, in real time, dynamically The unit the edge.

Speaker 2: The next ACH you wanna set. Yeah. So like, who is writing all these checks? This is not what we built this company for.

Speaker 1: I mean, you know, is bets.

Speaker 10: Well, it's funny. ACH, right, is 10 times bigger than a credit card network. It's the biggest payment network in the country, and it is, like, painfully old school and insecure and very, very slow, but we managed to augment it so it actually acts like a credit card. So we have a concept, essentially, like an off Yeah. And a capture and a settlement over ACH, and it just breaks down all walls for us. So we we're everywhere.

Speaker 2: Yeah. That makes a lot of sense. Well, you have the credit facilities. You're also raising equity. Tell us about the latest round.

Speaker 10: Yeah. So we, you know, really unleashed the product in earnest about a year ago. Mhmm. And then, you know, we we we did a million run rate in the first month, we're just about to cross $8,080,000,000 today. And I think today is actually the team's on it right now. Today is our biggest origination day ever. Wow. Oh, it's great to be here. Yeah. Let's do it. Yeah. So so what's been really interesting is that no one scaled the lending business this quickly before Mhmm. Because it's truly really, really hard. Because you have this interplay where you have to acquire customers Mhmm. In order to raise venture dollars Mhmm. In order to close credit facilities. And you have to be doing this basically permanently. You're constantly scaling. Yeah. And so in our case, that meant that, you know, we did, you know, we launched a product with basically a venture debt facility, and then grew it really quickly, and then closed our Series A led by Kosla Ventures. And then, you know, within, you know, five months, we were five x bigger, and so we closed the series b with with Kosla. And so they've been with us along the way, and, know, I think I'm I'm, like, I've been in permanent fundraising mode for sort of twelve months. I think I'm starting to feel you know, I I understand what what But Eric at at RAM sort of but I think he's, like, he's sort of he he loves the grind. Yeah. So I don't know. For me, it's like I wanna cry sometimes. Yeah. Well, get ready to do more of it. Don't think Yeah. Yeah. I'm resigned to it now. Job's not finished.

Speaker 2: That's what we said. Eric say. As Eric would say. Well, thank you so much for coming on the show. Yeah. Great to meet you. Progress. And great talk to you soon. Have a good one. Awesome. Hold it back. Goodbye. Can't wait. Quickly, let me tell you about Figma. Agents, meet the canvas. Your AI agents can now create and modify your Figma files with design system context.